Low-cost chip should spur overseas sales

Article Excerpt

TEXAS INSTRUMENTS INC. $31 (New York symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $46.5 billion; WSSF Rating: Average) makes chips for a wide variety of electronic devices, such as cellphones and digital cameras. The stock has struggled lately, as sales of entry-level phones have outpaced sales of phones with more features. The company earns higher profits from its more advanced chips. The chip is the most expensive part of a cellphone, and manufacturers want chipmakers to help them cut the cost of new phones. Consequently, Texas Instruments has developed a new chip that cuts the cost of a basic phone by 25%. It feels that this chip will expand its market share, which would help offset the lower profit margins. Right now, less than 25% of people in China and India use cellphones, so there’s plenty of room to grow. Texas Instruments is a buy. buy…

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