Will Intel Turnaround in 2016?

PC stocks have taken a beating over the last few weeks and Intel (INTC) is no exception to the trend. In fact, the latest downturn in PC stocks was driven by Intel’s weak quarterly report. While PC sales are expected to slow down in the future, I think investors can add Intel to their portfolios as the company’s diversifying business can help it offset the plunge.

X86 architecture

A particular mobile SOC is a very complex architecture. It comprises of several different, very critical intellectual properties, or IPs, blended on a small piece of silicon.
The IPs blended on SOCs contains CPU cores, graphic processor, image signal processors, memory controller, multimedia engines, and in various circumstances contains cellular baseband processors.

It is very necessary for every chip manufacturing company to provide effective products in the smartphone market. In a particular segment, the company needs to offer leadership as well as durable performance and abilities in each of its area. It is merely not sufficient for a company to get one thing right but propose a product that is behind in several other essential areas.

In 2015, Intel failed to gain a strong position in the smartphone market The main problem that acts as a barrier for Intel’s growth was its CPU part. yet the problem was not only the CPU, but also its X86 instruction set. Although company was capable to do lot of research to enable X86 compatibility in most Android applications. However, with the effectiveness of the primary CPU designs, they were largely decoupled from their instruction set architecture.

On the other hand, as compared to its rivals, the company did not manufacture its Atom CPU cores with adequate performance. Apart from this, the chips released by the company lacked Intel’s graphic application, its imaging experiences were fine below that of the competition, and also they lacked competitive cellular modem integration. The company’s only shipping part with a modem is a low-end chip with a 3G modem which is obviously not at all modern in this world.

At present Qualcomm is the market leader, but if Intel had fetched competitive, x86 grounded mobile designs, it can easily snatch some of the market shares and make its way to the second position.

Conclusion

While the PC market slowdown is having a negative impact on Intel, the company can offset the losses by diversifying further into mobile. Having been beaten down in the recent past, I think Intel is a good investment opportunity as the company can make headway in the smartphone business.
Published on Jan 29, 2016
By Akshansh Gandhi

Copyrighted 2016. Content published with author's permission.

Posted in ...