Intel Corporation (NASDAQ:INTC)’s in a catch22 situation

Posted by Peter Lauro July 25, 2013 0 Comment 974 views

In Intel Corporation (NASDAQ:INTC)’s Q2 earnings call, Brian Krzanich the CEO reiterated his plan of focusing on the booming mobile market. At first glance, the strategy seems to make sense but it has shades of risk. The company’s new approach may singe its margins. Typically, mobile devices sell at much lower price-points than desktops. This makes it very difficult for the component suppliers to wring-out profits.

Stiff competition

In addition to this, the competition in the mobile market is far stiffer than the desktop market. INTC shares a duopoly with AMD in the latter. On the other hand, in the mobile market, there are numerous ARM-based rivals. Fact is, Intel requires to focus on mobiles as PC sales are on the downslide. The potential margin-bruising that will undoubtedly take place is a risk that cannot be avoided.

Next generation technology

Intel Corporation (NASDAQ:INTC) has plans of launching Silvermont in the latter half of 2013. This is Atom’s next generation architecture. According to the company, Bay Trail zoloft dosage will bring in tablets that will be priced below the $150 sale point. Bay Trail is a new system-on-chip that has Silvermont online casino cores. The concern is that Bay Trail may overpower Haswell which is INTC’s new Core processors’ architecture. There is bound to be a certain amount of overlap as Bay Trail will power desktops too. Haswell is also going to be used in tablets.

The gameplan

Though the possibility of a margin-hit looms large, it seems like generic cymbalta it will be better for the company to take the blow instead of allowing the competition to usurp its position. With reference to Bay Trail Krzanich said that finally, the market will trend the online Paxil way it has to. It is much better to have cymbaltaonline-pharmacy a product such as Bay Trail that can be played no matter which way the scales tip, instead of having no gameplan at all. All, in all, well said.

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