Updated 19 Jun, 2013, 9:20 pm IST
Amazon.Com Inc is in advanced talks to buy the supplier of chips for its Kindle tablet computer, Israeli financial newspaper Calcalist reported on Monday, in what could mark a step in the company's ambitions in the smartphone sector.
Amazon may buy chip business of TI
TI's chips are used in Amazon's Kindle Fire tablet and Amazon CEO Jeff Bezos had underlined TI's strength in the industry at the tablet's recent launch.
"With the trend towards more vertical integration, led by Apple, speculation that Amazon is interested in TI's chipset arm is unsurprising," said Ben Wood, head of research at British wireless consultancy CCS Insight.
But some analysts questioned whether it would make sense for Amazon to spend billions on the business when many smaller and independent smartphone chip makers are reporting steep losses.
TI has flagged its plans to exit the business.
Gartner analyst Carolina Milanesi said she doubted whether Amazon wants to "become that intimately involved with hardware".
TI said last month it would shift its wireless investment focus from products like smartphones to a broader market including industrial clients such as carmakers, where it is hoping for a more profitable and stable business.
Shares in Amazon were up 0.8 percent to $244.39 in premarket trade on Nasdaq while TI shares were up 1.9 percent to $27.8.
Officials at both companies were not immediately available for comment outside U.S. business hours. A TI spokeswoman declined to comment to Calcalist.
TI has told investors it would continue to support its customers but its mobile application chip business, which supports features like video, would not invest in supporting its customers future plans for tablets and smartphones to the same degree as before.
Tags: Amazon buying TI , Amazon.com Inc , Amazon.com , Amazon , Amazon Texus Instruments , Amazon TI , Amazon Jeff Bezos , Amazon Chip Business , Amazon to but TI chip business , Samsung Electronics , Samsung Electronics Co Ltd , Amazon Kindle Fire , Amazon shares , Amazon stocks , Amazon shares rise
19 Jun, 2013, 08:48 PM
19 Jun, 2013, 08:05 PM
19 Jun, 2013, 05:48 PM
Indian students planning to pursue GMAT have sufficient paid as well as...
In India, online travel ticketing has gotten mature and more Indians are...
Struck by midnight hunger pangs? Check these services that will bring...