Wednesday, December 07, 2005

TI to increase revenue in the fourth quarter

In this article the well-known TexasInstrument is set to increase their revenue greatly. This is because of the high demand for semiconductor products. These products are used in mobile phones. Stock prices have risen 2% compared to the 1% of the previous day. Prices will rise from 38 to 40 cents a share on a revenue $3.56 and $3.71 billion. Compared to the previous 36 to 40cents a share and $3.43 and $3.72 billion. There have been supply shortages over the past few months, but it has not been resolved due to the high demand of these products.

Is the trade off fair to consumers, that the supply is low while the demand is very high? The company is making a 35% rise in revenue compared to the 15% rise in revenue of Dow Jones Semicondutor index. Is it fair to the other businesses like Dow Jones that TI is gaining more and more money for unproduced product?

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