Intel is Betting Big, Company Wants to Conquer Apple, Samsung, Sony and Other Mobile Giants
Intel Corp is just barely managing to cope up with the declining PC sales as its chips finally start to penetrate the tablet and smartphone market. However, Intel may have to exert more. It has to be more than a chip titan to become successful in the mobile industry.
Personal computer sales dwindle by the day. Intel can no longer consider it as their primary source of income for their chips. They will find it impossible to sustain their revenue growth with a deteriorating niche. Declining sales and diminishing market are the primary reasons for Intel's venture into the mobile industry.
As profitable it is right now, analysts say that Intel can be in a financial pinch as well if they continue with this bid. Analysts point out that mobile chips are considerably cheaper than PC chips. A sale of one personal computer chip is already equivalent to more than few mobile chips.
Revenue potentials are not similar. If Intel spends on their mobile chip bid, the company may not earn as much revenue - the company can go into a deep plunge.
"It's something they have to navigate carefully," Stacy Ragson from Bernstein Research aid.
"It's a touchy time."
Last year, two-thirds of Intel's revenue came from sales of pc chips. That is two thirds of $53 billion. Sales from mobile chips were little compared to this. However, personal computers are losing their appeal. Ultrabooks now have the bigger share of the market. Analysts predict sales for personal computers will drop by almost 11 percent - higher than 2012.
Predictions for mobile phones, on the other hand, are expected to grow by four percent. Analysts point out Intel will find it immensely challenging to maintain similar revenue with mobile chips compared to their pc sales before.