NXP Not Exposed to ‘Well-Documented Weakness’ in Low-End Android

NXP Semiconductors is “not immune” to “the clearly weakening macro environment,” said CEO Kurt Sievers on a Q2 earnings call Tuesday. “When we look at demand signals, we have a high level of confidence in the intermediate term outlook,” especially in the automotive and industrial markets that account for the majority of NXP’s total revenue, he said. “While there is well-documented weakness in the low-end Android handset markets, it is important to note that our mobile business is more biased towards the premium-tier members, and in aggregate, our mobile business accounts for only about 12% of our total revenue.” NXP is "not neglecting the cross currents in the macro, which have also started to be visible in our orders, especially in the mobile market," said the CEO. "Mobile is for us relatively small, so it doesn't really impact the whole company very much. But the principle we are applying is to be hyper-disciplined and hyper-paranoid to not grow any inventory down the chain."