Boston, MA 07/14/2014 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) is rolling out at least three new low-power chips that are targeted at tablet devices. The move signals the company’s commitment to penetrate the mobile and tablet market where its position remains slim.
The chips are expected to deliver higher speeds but also support low-power consumption. There is a big demand for high-speed smartphones and tablets, and Intel sees that as an opportunity to increase its market share in the segment.
The newly launched chips belong to the “Bay Trail” family. Experts believe that the new chips will be inside low-cost Android and Windows tablets.
In order to increase its market penetration, Intel Corporation (NASDAQ:INTC) has entered into partnerships with device manufacturers through which it offers its chips at discounted costs to encourage up uptake.
Better 2Q results
Intel Corporation (NASDAQ:INTC) recently upgraded its 2Q guidance on the back of the increase in PC sales. The move by Microsoft Corporation (NASDAQ:MSFT) to halt support for Windows Xp led to widespread system upgrade among enterprise customers that in turn boosted PC sales.
Encouraging with the findings that PC sales are not declining as fast as was predicted and the fact that system upgrade is leading to more PC sales, Intel Corporation (NASDAQ:INTC) reacted by boosting its revenue expectation. It expects 2Q revenue at $13.7 billion, up from $13 billion in the previous estimate. The company also expects the gross profit margin to be at 64 percent, a slight increase from the earlier expectation of 63 percent.
Shares of Intel Corporation (NASDAQ:INTC) have gained nearly $12 since June 12 when the company updated its guidance.
Earnings expectation
Wall Street expects the company to post adjusted 2Q net income of $2.81 billion, suggesting 35.9 percent increase from the same quarter a year earlier. The adjusted EPS is expected to hit $0.558, indicating a growth of 39.6 percent on a year-over-year basis.
As a member of the Dow Jones and S&P 500 Index, the performance of Intel Corporation (NASDAQ:INTC) is closely tracked at has immense bearing on earnings expectation of similar technology companies.
