Chip makers Dialog Semiconductor announced its first-quarter revenue forecast below analysts' expectations, it suggests the smartphone market will continue to weaken.

Dialog (March 8) said on Tuesday, is expected to first-quarter revenue between $230 million and $245 million. The company to provide intelligent mobile phone chips for apple and samsung electronics for a living, but also relies heavily on the business.

According to Thomson Reuters data, the forecast interval of high-end $250.4 million less than the most pessimistic analysts expected.

The average analyst forecast first-quarter revenue fell 13.6% from a year earlier, to $268.8 million, estimates range between $250.4 million to $326 million.

Dialog will revenue forecast is lower than expected due to the smartphone market slowdown, as well as the cyclical seasonal sales model.

European shares in early trading on Tuesday, the company's shares fell 6.5%, while European technology stocks fell 1.2%.

Dialog in January 2016 full-year revenue is expected to single digit growth, is expected to rebound in the second half of this year