Boston, MA 01/16/2013 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) and International Business Machines (NYSE:IBM) both made their wealth and created millionaire traders in the booming desktop and laptop market. But those good days are long gone, and while IBM saw the warning signs long ago, Intel stayed put and is now struggling to break free from the shackles of the declining PC market.
How did IBM manage to deal with the weakening PC market and can Intel Corporation (NASDAQ:INTC) learn a thing or two on how to deal with the situation? When it sensed that things were not going to work out well in the desktop and laptop market, IBM changed business strategy to start offering software and technology consulting. The company has also lately moved to cloud-based solution which is touted as the future of computing.
Now IBM is looking increase revenue from its cloud-based services by 70 percent in Q3.14. And by 2015, the company hopes that it will be able to generate half of its profit from software segment. As IBM issues these compelling announcements about its future, Intel has very little to show for the more than 40 products it announced to have introduced for mobile devices, server market, storage and networking. Instead, what is well known is that the company had a rough year in 2013 characterized by declining revenue and earnings.
Disappointment
The fall of the PC market has authored untold suffering for Intel Corporation (NASDAQ:INTC). The soaring popularity of smartphones and tablets is to blame for the troubles in the PC market. Companies which rely on PC sales for most of their revenue faced unfamiliar year in 2013 which had the biggest decline in PC sales in nearly a decade.
Following the wind
Intel Corporation (NASDAQ:INTC) now knows that in order to remain relevant in business, it has to crack the smartphone/tablet market. This is the segment that it has been vying to forcefully penetrate. As the company reports its fourth quarter, investors should keep an eye on progress in this sector. If the company reports gaining penetration, it would be an indication that the worst is coming to an end.
