The issue with revenue growth coming from other businesses is that these are less profitable businesses than Google’s search advertising business. Let’s see why that is.
Contrary to the popular belief that Google’s (GOOG)(GOOGL) growth has been slowing down, the company has been able to maintain its revenue growth at around 20%.
TXN’s Other segment includes smaller semiconductor operating segments. It also includes custom semiconductors known as application-specific integrated circuits (or ASICs).
Microcontrollers contributed ~45% to TXN’s embedded processing revenues. In 3Q14, TXN marked its eighth consecutive quarter with YoY growth in embedded processing revenues.
In 3Q14, the embedded processing division reported its eighth quarter of consecutive year-over-year (or YoY) growth. The embedded revenue was $711 million.
Texas Instrument’s Embedded Processing segment’s products can be referred to as the “brains” of many electronic devices. They’re designed to handle specific tasks.
HVAL includes high-volume analog products for specific applications. It also includes high-volume catalog products. The products span from automobiles to consumer electronics.
In 2013, the Analog segment contributed ~60% towards Texas Instruments’ (TXN) overall revenues. TXN’s Analog segment earned revenue of $7.2 billion in 2013.
The analog products usually have a long life cycle of more than ten years. The segment serves more than 100,000 customers in diverse industries and markets.
Texas Instruments (TXN) was founded in 1941. It’s headquartered in Dallas. TXN is known for designing and manufacturing semiconductors. It has operations in ~35 countries.
Consumer staple ETFs provide exposure to companies that produce essentials, including food, beverages, tobacco, and household items. The Consumer Staples Select Sector SPDR Fund (XLP) tracks the S&P Consumer Staples Select Sector Index.
In 2014, The Coca-Cola Company (KO) announced a long-term partnership with Keurig Green Mountain, Inc. (GMCR). The deal will allow people to enjoy ice-cold Coca‑Cola beverages at home with the soon-to-be-released Keurig Cold machine.
Growing populations and better standards of living in emerging markets will drive demand for beverages. The long-term prospects for growth in emerging economies are promising.
The non-alcoholic, ready-to-drink market is projected to grow at a compounded annual growth rate of 5% between 2014 and 2017. A large proportion of this growth will come from emerging economies.
PepsiCo, Inc. (PEP) is on track to achieve $1 billion in savings globally in 2014. It’s cutting costs across procurement, research and development, and other functions
The World Health Organization suggests that sugar should account for only 5% of total energy intake per day. A single soda can contains around 40 grams of sugar.
Coca-Cola and PepsiCo spend enormous amounts of money on innovation, advertising and marketing, and on strengthening their distribution network. It would be difficult for a new entity to make the substantial capital investments required to compete with these firms.
Soft-drink makers continually invest in branding. In 2013, Coca-Cola and PepsiCo spent $3.3 billion and $3.9 billion, respectively, on advertising and marketing activities.
Market intelligence firm Euromonitor International estimates the middle class around the world will include 1.5 billion households by 2020, a 25% rise over 2012.
US consumption spending accounts for over two-thirds of the country’s gross domestic product. A favorable trend in consumer spending on non-durable goods is a positive indicator for the non-alcoholic beverage industry.