Designing chips for cameras so passéShares in Cambridge, UK-based tech group CSR closed nearly 10 per cent higher in London last night [10th December 2013] after it revealed it was ditching making chips for cameras and concentrating instead on smartphones. As other firms such as Jessops have found, demand for cameras has waned significantly since people found their smartphones could serve just as well for selfies and other simple snaps. Now CSR has bowed to the trend, focusing on the more-lucrative areas of designing chips for smartphones and other new business.
Though the shift will mean the firm taking a $90 million (£54.6 million) hit to restructure its business, investors warmly endorsed the move by sending its shares rocketing to nearly 560 pence, having opened at 514 pence.
Meanwhile researchers at analysts, Liberum Capital, suggest there is still more growth left in CSR, arguing that after the transition it will still be left with a “high-quality growing businesses” with other parts of its technology offerings concentrated on Bluetooth in car, voice and music.
It follows Liberum’s September upgrading of the chipmaker from “hold” to “buy” with a 550 pence price target.