Boston, MA 02/13/2014 (wallstreetpr) – The largest semiconductor company in the world, Intel Corporation (NASDAQ:INTC) has come under a lot of flak and is almost pushed into a dead-end alley. Since 2010, there has been an increasingly diminishing demand for desktops and notebook computers. This has had a direct impact on the company’s PC processor business. In the wake of all these challenges, companies like AMD and a few others are targeting the server business that is dominated by Intel. In addition to all these woes, Intel Corporation (NASDAQ:INTC) has also been struggling to gain access into the application processors market. These components are used in smartphones and tablet PC’s.
Dismal reports
In 2013, Intel Corporation (NASDAQ:INTC) reported its 3rd consecutive year of dismal sales growth. It reported a 2% dip in IC sales which was 8 points lower than the growth rate of 6% that was registered by the global IC market. In addition, its 2014 guidance was disappointing. It has said that revenue growth will remain at the current levels while it is projected that there will be a 7% rise in the overall IC market. The one thing that the company has now tried to do to is to actually buy its entry into the Tab-PC processor market. In 2013 Nov the company announced that it is willing to pay any price difference between the company’s latest Atom-based x86 processor and any ARM processor if tablet manufacturers used Intel Corporation (NASDAQ:INTC)’s SoC MPUs in their products.
The Apple angle
In addition to all of this, Intel Corporation (NASDAQ:INTC) said that it will be postponing equipping the company’s Fab 42 located in Chandler, Arizona. Currently, Apple Inc (NASDAQ:AAPL) is considering moving some of the company’s application processor production out of Samsung Electronics Co., Ltd (KRX:005930). If Apple agrees to have Intel Corporation (NASDAQ:INTC) make these application processors at its Fab 42, it will gain access to the world’s most leading-edge processing technology as Intel is definitely at least a year ahead of TSMC as well as Samsung and it will also help Intel find a strong footing in the smartphone space.
