Intel Corporation (NASDAQ:INTC) reported their third quarter results on Tuesday, which beat the streets estimate of $14.45 billion revenues by $0.1 billion. PC Client group contributed around $9.2 billion revenues to the company, which is the biggest chunk of the overall company revenues. Many people are thinking that the PC business is near its end and Intel need to make some strategy to survive in the future without PC’s. Susquehanna Financial Senior Analyst, Chris Caso talked on CNBC about Intel’s future.
Caso mentioned that for majority of 2014, PC has been resilient and making a lot of business. He added that the resilience shown by PC’s might be due to the flattened out tablet sales and refreshment of some older PC’s by Intel Corporation (NASDAQ:INTC).
Caso pointed out that PC sales were declining when iPad’s were launched by Apple Inc. (NASDAQ:AAPL), but he thinks that the major reason for PC’s to be still alive are the corporates which still depend a lot on PC’s for majority of their work.
“[…] The PC is still the biggest part of it, and the data center. […] The cloud is definitely good for Intel. […] They still need the PC to be up, they at least need the PC to be stable, because it is such a big part of their profit” Caso said about Intel Corporation (NASDAQ:INTC).
He thinks that Intel Corporation (NASDAQ:INTC)’s relationship with Microsoft Corporation (NASDAQ:MSFT) will definitely help the company in the PC business. He added that if a user wanted to build a My Windows PC, by default they need to go to Intel products and Intel gets paid for it. He thinks that Intel Corporation (NASDAQ:INTC) and Microsoft are tied close together.
Caso said that Windows 8 was not a very successful product for Microsoft, and they are coming up with Windows 10, which might be launched in 2015. He talked about some expectations that the Windows 10 might reinvigorate Microsoft, which might again help Intel Corporation (NASDAQ:INTC)’s PC business.
As of 30 June 2014, Ken Fisher’s Fisher Asset Management hold around 18.9 million Intel Corporation (NASDAQ:INTC) shares.