Intel Corporation (INTC) Cloud Services Dependent on Third Party Vendors


Intel Corporation (NASDAQ:INTC) recently announced that its quarterly revenue is going to miss the estimates by a large margin. Shortly after the announcement, the stock decline by 5%. An article on CNBC said that there was a time when a small revenue decline from Intel Corporation (NASDAQ:INTC) had a big impact on the overall market. A few years ago, when Intel announced that its revenues will be less than expected, the shares tumbled by 19%.

The source said that for years, Intel Corporation (NASDAQ:INTC) has not played any major role in the mobile and hardware business. Qualcomm is taking the lead everywhere. Conventional hardware business, the backbone of Intel Corporation (NASDAQ:INTC) is facing problems since months. The company is trying to enter the Asian market and selling business at loss.

The source quoted an expert who thinks that Intel is wrongly attributing its problems to the currency and Windows cycle. He thinks that smartphones and software is the most important aspect of the global markets and Intel Corporation (NASDAQ:INTC) is lacking there.

Cloud business is also not depicting positive signs for Intel. The source mentioned that Intel Corporation (NASDAQ:INTC)’s Cloud business depends on Google, Amazon and other vendors. This is the strong hurdle for the chip maker to succeed in the overall Cloud race. Intel will have to rethink its strategy for the long term success.

According to some new reports, Intel Corporation (NASDAQ:INTC) will power the new iPhones. But nothing can be said with surety. Tapping into the low-cost smartphones and striking deals with Samsung and Xiaomi can change the game for Intel.

 As of June 30, 2014, Ken Fisher’s Fisher Asset Management owns over 18 million shares in Intel Corporation (NASDAQ:INTC).

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