Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Texas Instruments (TXN - Analyst Report) or "TI” has launched two new apps: the TI-Nspire App and TI-Nspire CAS App for Apple Inc.’s (AAPL - Analyst Report) iPad.

TI is putting together its powerful graphing technology to create apps targeted at math students. The app is also intended to help teachers by increasing interest in on math studies. 

Apart from the app, TI continues to support teachers through its professional offerings. Teachers can access the free classroom-ready activities through TI-Nspire Apps from their iPads. They can integrate curriculum into activities through TI's Math Nspired website.

TI’s apps for iPad are available at the App Store for $29.99 each. Teachers will receive a one-year license of the TI-Nspire and TI-Nspire CAS Teacher Software free if they purchase one of the apps.

We view this as a smart move for TI, since the convergence of technologies could soon pressure its calculator business, which while accounting for just a small part of its sales, does provide a seasonal boost during the back-to-school season.

Technology has entered classrooms of late. There are various apps present in the market, which enable teachers to impart better and quality education. More teachers prefer this method of education as it is more interactive and helps students to grasp the concept better. If TI’s app catches on as expected, it may turn out to be a positive for TI going forward.

As per a report by IDC, Apple sold 22.9 million units of its iPads in the fourth quarter of fiscal 2012, which was a 48% year-over-year increase for a 43.6% share of the market. Samsung, Amazon (AMZN - Analyst Report), Asustek, Barnes & Noble (BKS - Snapshot Report) and others are all vying for a bigger share of the pie.

According to IDC, iPad’s market share is declining ‘(43.6% in the fourth quarter of fiscal 2012 compared to 51.7% in the year-ago quarter). This is not really such a concern for TI and is more or less expected because sooner or later in any high-growth consumer market, there will be new entrants that will take share from the market leader.

The more important thing to consider is the strength of the market itself, which could result in pretty strong growth for the market leader, especially one as well-entrenched and loved as iPad. Of course, we do expect TI to create apps for other popular OSs such as the Android.

In the fourth quarter of fiscal 2012, TI generated total revenue of $2.98 billion, down 12.1% sequentially and 12.9% year over year (slightly better than the mid-point of the recently narrowed guidance range of $2.89 billion to $3.01 billion).

The Analog business fell 9.4% sequentially and 1.5% year over year. The sequential decline was attributable to broad-based weakness across the HVAL, HPA, SVA and power management product lines.

Texas Instruments has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%