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Flagging handset demand also hit Motorola, America's mobile-equipment leader.
Texas Instruments, the world's biggest mobile phone chip maker, had its 2007 profit estimate cut by a Citigroup analyst who cited concerns over slowing handset demand.
Texas Instruments, a maker of chips for mobile phones, narrowed its forecasts for third-quarter sales and profit yesterday amid signs of slower growth in handset demand.
After a few years of sputtering badly, handset demand is on the rise.
Then Nokia cut their forecast for the growth in handset demand and Perlos's stock got hammered.
"It's all earnings, and it looks like there's a big concern over PC demand and handset demand".
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Based on strong cellular-handset demand for NOR flash memory and Intel flash-capacity constraints, Piper Jaffray believes AMD will deliver strong flash-memory results in the third quarter.
Recently Samsung raised its outlook for the global mobile handsets market as demand far outstripped supply and inventory levels of the company were at its lowest in half a decade.
In the third quarter vendors combined to sell over 289 million handsets, with strong demand in Asia and Africa lifting sales 15% from a year ago.
Demand from handset manufacturers is lower than usual in the run-up to year-end holidays, and distributors of National Semiconductor chips are reducing inventory, the company said.
Intel may not be able to wrest such chip sales from the market leader Texas Instruments, some investors said, even as Motorola and Flextronics International, two handset makers, report surging demand.
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