Motorola will use Texas Instruments' 3G chips -

The world's No. 2 mobile phone company said it has successfully developed high-end phones based on TI's 3G chips, the largest wireless chip firm in the world.

Analysts say the deal will help boost TI's revenue, a Motorola-owned partner.

Previously, TI often provided chips for Motorola's low-cost phones, but it struggled on the high-end, expensive market segment. This is an important reason why TI's financial results in the last quarter were quite weak.

Picture 1 of Motorola will use Texas Instruments' 3G chips - Source: AP According to analyst John Acree, from every Motorola phone, TI can collect up to 25 USD of chips. Meanwhile, Will Strauss of Forward Concepts estimates that for each "cell phone", TI's revenue is at least $ 30, which is three times higher than low-cost phone sales.

Motorola said the TI chip will be used inside WiMax phone models, an emerging high-speed wireless technology. These crickets may appear on the market right in 2008.

Recently, Motorola has been actively using chips from major suppliers such as Qualcomm and TI, alongside its long-time partner Freescale Semiconductor. Strauss believes that expanding the supplier list will help Motorola save costs, lower product costs. This is a very important factor, as its profit in the third quarter has fallen by more than half due to the price reduction war.

Nokia, Motorola's number one competitor, is currently the world's largest consumer of TI chips. TI's second largest customer is Sony Ericsson.

Trong Cam