Intel Corporation (NASDAQ:INTC) has had a tumultuous run over the past year. Its earnings for the fourth quarter were an utter let down, falling 24% year over year to $0.51 a share. In addition, its share price has plummeted close to 7% in the past six months.
To paint a darker shade of gloom on the already deplorable delineation, economic swings continue to weigh in on the semiconductor sector. This, coupled with an ailing PC sector (which is expected to decline further for the second consecutive year), has fuelled an industry-wide bearish campaign against Intel Corporation (NASDAQ:INTC). Although there are still some pockets of bullishness, the market at large has blackballed the stock
I, however, believe that many have failed to see the impending upside that will characterize Intel in the second half of the year. My convictions are pegged on mobile. While critics may be quick to write me off, saying that Intel is a mere ‘periphery player’ in a game dominated by the likes of Apple Inc. (NASDAQ:AAPL) and Samsung, I maintain my stand.
Unlike other ‘periphery players’ looking to get a go at the market, Intel is taking a more decisive approach towards mobile. Instead of forcefully penetrating the market in a head-on fashion, it is taking an entirely different, more tactful approach; an approach that not only has high chances of panning out, but one that could potentially reverse the stock’s downward trend.
Bridging the gap
Intel Corporation (NASDAQ:INTC) wants to bridge the gap between different mobile ecosystems. Dating back to the Las Vegas Consumer Electronics Show, tech buffs were thrilled to know that Intel had serious intentions of unifying Google Inc (NASDAQ:GOOG)’s Android and Microsoft Corporation (NASDAQ:MSFT)’s Windows 8 platform.
At CES, it was established that Intel Corporation (NASDAQ:INTC)’s system on a chip, Bay Trail, was fully functional on both Android and Windows 8 devices. This set the stage for an unexpected move. More recently, Intel released a patch for Android’s latest version, Android 4.2.2 (at the time of writing). This patch presents an opportunity for developing the first compelling hybrid in today’s mobile ecosystem. The patch will allow dual booting (that is booting on the same device) for both Android and Microsoft Corporation (NASDAQ:MSFT)’s Windows.
This essentially means that consumers who are torn between Android and Microsoft Corporation (NASDAQ:MSFT) have an opportunity to enjoy both worlds on the same device. Microsoft Corporation (NASDAQ:MSFT)’s Windows, 8 despite being pulled down by low sales of Windows RT, has gained notably. Android, on the other hand, speaks for itself. From the U.S, to China, and even emerging markets, Android has managed to corner the market. Intel’s approach therefore allows it to get exposure to some of the most instrumental markets across the globe.
The Android patch presents an incredible opportunity for Intel. I personally think that the Bay Trail will send ripples down the tablet market. More players in the market will want to advance tablets based on Intel’s new Bay Trail. What’s more is the fact that Bay Trail, being 22nm, is energy efficient compared with Samsung’s 32nm.
