Intel (INTC), the Ghetto Kingpin of Smartphone Chip Makers
Tweet
Share
E-mail
Get Alerts INTC Hot Sheet
Price: $107.14 +3.90%
Rating Summary:
24 Buy, 39 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 22 | New: 8
Rating Summary:
24 Buy, 39 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 22 | New: 8
Join SI Premium – FREE
It is no secret Intel (Nasdaq: INTC) has its sights on the lucrative smartphone market. Already top dog in computeres, Intel has floundered when it comes to tapping the market for smartphone processors. This market largely belongs to Qualcomm (Nasdaq: QCOM) and MediaTek. In order to get a leg up, the chip maker has highly ambitious plans in the very low-end of the market. This market mainly includes emerging market economies, which Intel is targeting with its new Atom processor.
"By targeting the low end, Intel can attempt to address the market with the greatest opportunity for growth in the smartphone business during the next few years," said Francis Sideco, senior principal analyst for wireless communications at IHS.
Shipments of low-end smartphones will rise at a compound annual growth rate (CAGR) of 51 percent from 2011 to 2016. In contrast, high-end smart shipments will grow at a CAGR of only 12 percent during the same period, says IHS.
"While Intel dominates the PC microprocessor market, in the smartphone semiconductor business the company has no place to go but up," Sideco said. "And while Intel certainly faces major challenges in achieving the kind of leadership position in mobile handsets it now has in PC semiconductors, the company appears to be serious about building its competitive positioning."
"By targeting the low end, Intel can attempt to address the market with the greatest opportunity for growth in the smartphone business during the next few years," said Francis Sideco, senior principal analyst for wireless communications at IHS.
Shipments of low-end smartphones will rise at a compound annual growth rate (CAGR) of 51 percent from 2011 to 2016. In contrast, high-end smart shipments will grow at a CAGR of only 12 percent during the same period, says IHS.
"While Intel dominates the PC microprocessor market, in the smartphone semiconductor business the company has no place to go but up," Sideco said. "And while Intel certainly faces major challenges in achieving the kind of leadership position in mobile handsets it now has in PC semiconductors, the company appears to be serious about building its competitive positioning."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tractor Supply Company (TSCO) PT Lowered to $33 at UBS
- Dave Inc (DAVE) PT Raised to $470 at UBS, Estimates Adjusted
- UBS Reiterates Buy Rating on Williams Companies (WMB)
Create E-mail Alert Related Categories
Analyst Comments, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
