Though Infineon posted slightly better than expected results for its automotive, industrial and multi-market units, the chip maker said operating losses at its mobile phone chip unit would widen, with sales falling this quarter. The company said it doesn’t expect its phone unit to be profitable for the full fiscal year, saying that orders from phone manufacturers have dipped below just the seasonal slow down.

The chip maker said the slowdown had nothing to do with its technology, but phone makers had “very little new stuff coming” for the quarter.

Infineon posted a loss of 396 million euros ($578.9 million) for the fourth quarter, compared with a profit of 120 million euros for the same period a year earlier. The company said the loss was also due to profit declines in its spun-off chip unit Qimonda. Infineon holds a 77.5% stake in Qimonda.

In early morning trading Infineon’s shares were down 16.7%.