Marvell loses ground with the slow death of 3G
 

Mobile chipmaker Marvell is suffering as demand for 3G chips slowly dies as the rise of 4G LTE demands different chips.

The company announced that its quarterly gross margin fell as demand for its chips used in third-generation mobile communication outweighed a rise in sales of its more profitable 4G LTE chips.

Marvell did better than expected in the first-quarter but overall the cocaine nose jobs of Wall Street are predicting worse to come.

Smartphone sales growth is shifting away from North America to China where buyers favour handsets priced below $200.

Chief Financial Officer Michael Rashkin said in a post-earnings conference call that the company's mix was skewed to 3G even though LTE did well and its margins came slightly below what was expected in the quarter.

Marvell's gross margin shrunk to 48.4 percent for the first quarter ended May 3 from 54.3 percent a year earlier.

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