Intel Corporation (INTC): How Tremendous Is Its Tablet Opportunity?

A great balancing act
Although Intel has an opportunity to capitalize on new areas of growth, it may come at the expense of the already stagnating PC market. The PC market is currently running the risk of experiencing a prolonged user replacement cycle, stemming from increased user adoption of tablets and smartphones. Additionally, Intel Corporation (NASDAQ:INTC) is accustomed to receiving higher average selling prices than what the mobile computing industry commands. Together, these factors could negatively impact Intel’s level of profitability over the long-term.

Then again, if Intel wants to remain relevant in the future of mobile computing, it may have no choice but to sacrifice profitability in exchange for securing its place in the future of consumer computing.

The article How Tremendous Is Intel’s Tablet Opportunity? originally appeared on Fool.com.

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

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