The US chip manufacturer Intel Corp., is to become more focused on Chinese tablet makers in an attempt to escape a slump it was currently facing, amid slowing sales in the PC market.
The idea of the Chief Executive Officer of the company – Mr. Brian Krzanich is to shift the focus from the currently shrinking PC market, in which Intel Corp. is the leading provider of chips, to mobile devices and smartphones, where the companys chips are used very rare. The analysts forecasts the revenue of the company may reach 12.8 billion dollars this year, capping a 1.9% increase from 2013.
The company is following an aggressive pricing strategy in order to make its tablet-use processors more popular, especially in China. This move is provoked by the companys desire to reduce the domination of local brands and manufacturers and expand its influence overseas. If the strategy turns out to be successful, the number of Intel-based tablets is likely to increase substantially.
Intel Corp.s Chief Executive Officer – Mr Brian Krzanich said in a keynote address, which was cited by the Financial Times: “We’ve been known as ‘The guys inside the PC and, yeah, they do the data centre too’, but what we’re really trying to show is that we’re going to go across the spectrum of computing products.”
Intel Corp. is shifting its focus towards mobile devices processors. The company also said that it intends to spend about 100 million dollars to fund product development in the mobile devices sector in China in order to attract more partners. The company also shared that about 40 million Intel-chip-based tablets are expected to be shipped in 2014.
Intel Corp. added 1.03% to trade at 26.45 USD per share, marking a one-year change of 22.03%. According to the information published on CNN Money, the 39 analysts offering 12-month price forecasts for Intel Corp. have a median target of 26.00, with a high estimate of 32.00 and a low estimate of 16.00. The median estimate represents a -0.69% decrease from the last price of 26.18.
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