Intel Corporation (INTC) Atom’s Chip on Its Shoulder

Of course, it isn’t realistic for Intel to find its way into every single mobile computing device being shipped when you have companies like Apple Inc. (NASDAQ:AAPL) and Samsung designing in-house processors that command a hefty piece of the market. It’s more realistic to think that Qualcomm’s annual chip shipments are along the lines of Intel’s maximum potential in mobile. Considering QUALCOMM, Inc. (NASDAQ:QCOM) shipped 590 million chips last year, we’re only talking about roughly $13 billion in revenue at $22 per chip. To put this figure in perspective, it represents 24% of Intel’s 2013 projected revenue.

Additionally, the rise of mobile computing has been cannibalizing PC shipments since 2011, which has put added pressure on Intel’s revenue. Between these factors, it’s all but certain that Intel will face revenue headwinds in the future.

The article Unit Rich, Cash Poor: Intel Atom’s Chip on Its Shoulder originally appeared on Fool.com and is written by Steve Heller.

Fool contributor Steve Heller owns shares of Apple, Qualcomm, and Intel. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple, Intel, and Qualcomm.

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