Boston, MA 05/08/2014 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) is one of those founding companies of Silicon Valley that is facing some rough weather now because of a sudden shift in consumer preferences.
It faces challenges from smartphone makers like Apple Inc. (NASDAQ:AAPL) and chip makers like QUALCOMM, Inc. (NASDAQ:QCOM). Intel is not the only one of the old blue chips that is feeling somewhat lost as the PC business collapses rather suddenly. Hewlett-Packard Company (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT) and Dell Computers are also in a similar spot of bother.
For chip giant Intel, HP, Dell and Lenovo were its three biggest clients who account for 42% of the company’s revenue with HP contributing 15% and Dell contributing another 15%.
As the PC business continues to decline, Intel’s revenue from the PC segment also continues to decline — reaching 63% in 2013.
Intel is trying to counter this decline by investments in the growing cloud computing business and Big Data Analytics.
Intel Corporation (NASDAQ:INTC) is also trying to break into the smartphone business by supplying SoCs and modems like the 7260 LTE to smartphone companies such as Apple and Samsung.
Partnership with Google Inc (NASDAQ:GOOG)
Google is among the bluest of the blue chips among the new generation of tech pioneers. Intel and Google have announced many Chromebook laptops that will be produced by manufacturers such as Asus, Dell, HP, Acer, Lenovo and Toshiba. The price range of these will be between $300 and $400.
Chromebooks to Challenge PCs
The combination of Google and Intel in Chromebooks is a win-win for both and could threaten traditional desktop and laptop PCs. With Intel’s powerful chips powering these Chromebooks, there will be little to differentiate these cheap Chromebooks from regular PCs and laptops. With the flexibility of the Google Chrome platform, Chromebooks with sufficient processing chops might even possibly attract enterprise buyers and other high value customers. These Chromebooks will be powered by Intel Celeron and Core i3 chips.
