FollowIntel is facing competition from smart phones and tablets.So far it has been known as the world’s largest microchip manufacturer.More and more consumers are moving towards the smaller gadgets.
The story of Intel’s losses in the last year has been revealing.In the fourth quarter its profits fell by 27%; a trend being seen in two preceding quarters as well.This data is indicative of the shift of consumers to smart phones.
Although Intel is taking its hardware to smart phone and tablets market,it has not been able to do much about the decline in the PC market.Across the globe,there has been a sharp fall in Intel’s sales by 6.4%.
Intel has had a challenge to keep its losses low in this scenario.It has seen a fall of 27% in its net income while its revenues have gone done by 3 %.Profits dropped to 15% with sales which slumped by 1.2 %.
Intel still has still not made a mark with its mobiles.It is speculated that Intel does not any longer have a strong alliance with Microsoft.Even Windows 8,the latest entrant of the popular operating system has had a lukewarm response.It has not managed to do anything to boost up the sales of the new PCs.
Intel is trying to take on the market with its ‘ultra books’ which are lighter versions of the laptops.However,the newer tablets are cheaper and come with more features.
Intel is behind times and needs to bring in some fresh air.It is making plans to have a new production centre for micro chips even though the market for PCs looks bleak.It is time that Intel thought out of the box and came up with something that can change its fortunes.
