Wireless sector falls on demand concerns

Makers of wireless telephones and equipment got slammed in morning trading, after an analyst report said demand for handsets may be slowing.

Lehman Brothers issued a report on Motorola saying that firm told suppliers it was seeing lower demand for handsets.

Motorola apparently told analysts about the slow down Thursday.

"Motorola is talking down prices and profits," said one dealer at a leading investment bank.

Telecom equipment maker Nokia said last week that it expected third quarter earnings to be hurt by lower demand for WAP-enabled phones.

The news sent most of the sector down. Nokia dropped 3 7/8 to 38 1/8, Motorola fell 2 1/8 to 34 ½, Texas Instruments slipped 3 1/16 to 53 15/16, Cypress Semiconductor fell 5 3/8 to 30 5/8, and Analog Devices dropped 7 1/8 to 56 5/8.

Reuters contributed to this story.

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