Intel Corporation (INTC) Has Given Up Mobile Business Efforts in the US?


Intel Corporation (NASDAQ:INTC) is struggling with its mobile business since year now. The company has desperately tried everything but nothing is working. Every mobile device, smartphone or tablet in the US is powered by a chip that is made by companies rival to Intel. An article on Bloomberg said that Intel Corporation (NASDAQ:INTC) has given up its efforts to strike some major deal in the US with companies like Samsung, Apple or Microsoft and now heading to the emerging markets to tap into the companies which could make a difference in the future.

Intel Corporation (NASDAQ:INTC) is spending millions to pave its way in China, the rising smartphone market where more than 250 million people use smartphones. But the problem is even grave for Intel Corporation (NASDAQ:INTC) here too. Xiaomi is the mobile goliath in China which has no competitor. Xiaomi phones are powered by Qualcomm, one of the arch rival of Intel Corporation (NASDAQ:INTC). If we talk about cheaper smartphone, Taiwanese chip company MediaTek has captured that end. Intel Corporation (NASDAQ:INTC) will have to break the market duopoly to strike a deal with Xiaomi for mobile chips, an endeavor which seems to take years to culminate into reality.

Intel Corporation (NASDAQ:INTC)’s mobile revenue is negligible, only $202 million out of $56 billion. The company is trying to find some way to expand its business.

The source said that Intel must understand the demand supply chain of the Chinese markets. Intel Corporation (NASDAQ:INTC) bought 20% stake in Tsinghua Unigroup by giving double the price than what was due to tap into China as its next business destination.

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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