Boston, MA 11/28/2013 (wallstreetpr) – There is no doubt that Intel Corporation (NASDAQ:INTC) is abandoning its planned media investment in what it called Intel TV. Reports indicate that the chipmaker is now seeking for buyers and Verizon has been variously mentioned as a potential buyer. The question on is whether it was prudent to terminate the project which former CEO Paul Otellini tried hard to market to the company’s shareholders.
It has to be mentioned that nobody can doubt the competency of Intel Corporation (NASDAQ:INTC) in terms of technological innovation. The company is the industry leader in semiconductor and processor making sector. Its mark can be found in the majority of PCs in homes and offices worldwide. This is to say that the company was doing to offer a captivating product for the media market especially at this time when consumers are demanding more than just a television in their living rooms.
However, media investment can sometimes be costly and tricky. Sometimes you invest billions of dollars and fold up soon before you can realize any meaningful profits. The costly part of media today is content acquisition and this was going to drain the company at a time when its primary business lines were not in their best form. It thus goes that by abandoning Intel TV, the company played into the hands of shareholders who had had reservations over the move, especially in regards to the cost involved. In any case, it was going to put Intel Corporation (NASDAQ:INTC) in collision in terms of competition with some of its core customers.
The company’s new CEO Brian Krzanich seems to be having the needed foresight for the company. Intel Corporation (NASDAQ:INTC) has a future in smartphone and tablets market. This is the segment to replace PC as the primary revenue earner for the company. It is unfortunate the INTC is now trailing other players like QUALCOMM, Inc. (NASDAQ:QCOM) in this market. However, given its superior technology and pool of talented engineers, there is no doubt that the company can surge ahead and dominate the market just as it did with PCs.
And away from making its own smartphone and tablet processors and semiconductors, Intel Corporation (NASDAQ:INTC) can also put its big factories and technology to be come a contract semiconductor manufacturer.
