Slowing economy hits chipmaker TI

TI is a top supplier of microchips for mobile phones

Semiconductor firm Texas Instruments (TI) has reported weaker-than-expected earnings for its April to June period.

A sudden drop in demand for its chips used in computers meant its second quarter net income fell to $588m (£293.2m), from $614m the year before.

Sales to mobile phone customers also declined, contributing to a 2% fall in overall revenue to $3.4bn.

Texas said it was expecting third quarter revenues of between $3.26bn and $3.54bn, below analysts' expectations.

The company blamed the slowing economy for its troubles.

"We are cautious given the demand environment we just experienced," said Rich Templeton, Texas's chairman, president and chief executive.