Boston, MA 07/03/2014 (wallstreetpr) – Intel Corporation (NASDAQ:INTC), a global chipmaker struggling to make inroads in the mobile market, tested a wireless device without first obtaining the approval of Federal Communications Commission, an investigation revealed. As such, the company has been fined because of that violation.
The company will pay $144,000 to FCC and also adopt a compliance plan for three years to ensure that its future projects do not violation regulatory provisions.
The wireless device was operated in residential locations for testing and evaluation purposes. The company also reportedly displayed the device at a trade show with misleading labeling.
According to Intel Corporation (NASDAQ:INTC) officials, the company is creating a program aimed at giving confidence to the FCC that the company is taking compliance steps for future projects. Nonetheless, despite the fine, the company is happy to get the compliance issue behind it.
Mobile Chips
Intel Corporation (NASDAQ:INTC) is largely lacking in the mobile chip market because of its late entry in the market. However, the company is leaving no stone unturned to penetrate the lucrative market, and that can be seen in the manner that the company’s labs are busy researching and developing cutting-edge technologies for the wireless market. The company’s focus is on delivering more powerful and energy efficient wireless chips that are able to meet the massive data processing requirement while supporting energy saving goals.
Intel Corporation (NASDAQ:INTC) is also courting Smartphone and tablet manufacturers to adopt its chips, and it is doing this by offering the chips to the manufacturers at discounted prices.
Analysts Changing Tone
As Intel pushes forcefully in the mobile chip business, analysts can be seen adjusting their views on the company. For example, Stanford Bernstein finally upgraded the stock to a “Market perform” from an “Underperform” in the previous view.
The rating firm cited factors such as surprise growth in PC sales and aggressive push into wireless as some of the factors that led to the latest upgrade of the stock.
The removal of Microsoft Corporation’s (NASDAQ:MSFT) Window Xp has created a need for system upgrade, especially for business clients, and that has resulted in more PC sales, thus a boost to Intel Corporation (NASDAQ:INTC).
