Make Tech Products Easy and They'll Sell: Broadcom CEO
Special to CNBC.com
The company that makes complicated technology easy for consumers to use will profit despite a tough retail environment, Broadcom CEO Scott McGregor told CNBC Wednesday.
"Demystifying technology is a very important thing to do," said McGregor, whose company's semiconductors are used in the wireless and broadband communication business. "These products are so complicated these days. If you can make it simple to use...those are the products that are going to sell."
Without naming names, he said a number of Broadcom's customers have "not only created easy-to-use products, but have created a great ecosystem of things you can purchase, content you can view, things you can buy. Those are the guys who are really on top of the game and those will sell very well."
Smartphones and tablets are "definitely selling well" and that means Broadcom's sales are good — so good the company recently raised its fourth-quarter guidance on sales it's seeing in both commercial and consumer products.
Broadcom, which recently bought NetLogic Microsystems for $3.7 billion, will be using the $500 million or so it generates every quarter for more acquisitions and share buybacks, McGregor said, adding that the company plans to increase its dividend "over time" but did not give a timeframe.