GPS chipset maker SiRF Technology last Tuesday announced plans to shut down its mobile TV business. The decision is part of an overall strategy by SiRF to stem losses it will likely incur from the sharp downturn this year in the GPS device market.
According to several media reports, decision-makers at the company felt the mobile TV business was growing too slow to make money in the short term. At the same time, U.S. consumers, worried over the high price of gas and declining value of homes, are less interested in purchasing tech gadgets such as GPS devices. This has led the company to revise its estimated profits for the first quarter of 2008 from around $75 million to $60 million.
In addition to closing down the mobile TV business, SiRF plans to lay off 7 percent of its work force and close two branch offices.
For more information, visit www.sirf.com.