Boston, MA 06/06/2014 (wallstreetpr) – Designer and manufacturer of integrated digital technology platforms or chip maker, Intel Corporation (NASDAQ:INTC) is not going back from investing in mobile chip business despite suffering losses and criticisms from various quarters. This is to make sure that the company stay tuned to the current market needs and take advantage to drive future growth.
Investment In Mobile Chip Business
The technology trend has undergone sea changes with the advent of smart devices such as smartphones and tablets from where people can connect to anywhere in the world. As a result, the PC desktop are only witnessing downside trajectory in the last few years since people migrate to the latest technology.
Therefore, Intel Corporation (NASDAQ:INTC) believes that the future will be governed by an electronics environment where all will be routed through the Internet. As such, the company believes that it has no alternatives but stay invested in mobile chip business to grab a slice of market share where there is still big opportunities available.
Though it is a slow starter, the company’s CFO Stacy Smith is confident of winning new customers in the current year. The confidence stemmed out of its mobile-chip capabilities that are set to reach a point from where they could keep on adding customers.
The CEO felt that all device needs connection in five years time from now on. Therefore, it has to invest to make a kill from the available big opportunities. Intel Corporation’s thrust is to achieve 15 – 20% of the market share in Tablet segment in the near term.
Loss In Mobile Sector In 1Q
The chip maker had earlier in April indicated that it has suffered losses exceeding revenue in its mobile segment. Intel Corporation’s loss was $929 million in communications and mobile segment, since sales plummeted 61% to $156 million.
Obviously, this has invited criticism from investors like Michael Shinnick, who viewed that Intel Corporation (NASDAQ:INTC) was better off in closing the unit and instead turn its efforts to make chips for other companies.
