Intel Corporation (INTC), Microsoft Corporation (MSFT): A Second Chance For This Tech Giant

What Windows 8.1 means for Intel

Intel Corporation (NASDAQ:INTC) is in a similar boat as Microsoft Corporation (NASDAQ:MSFT). Dominate in the PC era and slow to adapt to the rise of mobile devices, Intel is spending enormous amounts of money to gain an edge over ARM-based processors which dominate the mobile market. The company recently released the Haswell line of processors aimed at desktops, laptops, high-end tablets, and hybrid devices. Haswell’s main focus is energy efficiency, allowing mobile devices to last much longer on a single charge.

Intel Corporation (NASDAQ:INTC)’s other line of processors, Atom, is aimed strictly at mobile devices. The newest iteration, Clover Trail, will find its way into Samsung’s flagship Galaxy Tab 3, a big win for Intel. This tablet is Android based, but Intel’s mobile fortunes are tied heavily to the success of Windows 8. Atom processors are cheaper than Haswell, allowing for low-cost Windows tablets which still run the full operating system. Contrast that with Android tablets, which run essentially the same operating system as Android phones.

The enterprise is key for both Microsoft and Intel Corporation (NASDAQ:INTC). If Windows 8 tablets begin to become popular in the enterprise Intel benefits just as much as Microsoft Corporation (NASDAQ:MSFT). Windows 8 tablets can run normal Windows programs, including legacy programs which companies may rely on, giving Microsoft and Intel Corporation (NASDAQ:INTC) a huge advantage.

The bottom line

Microsoft needs an operating system which people like, and Windows 8.1 is a big step in the right direction. Consumers as well as enterprise customers who’ve shunned Windows 8 thus far may need to take a second look. Security is a big focus in Windows 8.1 for enterprise users, and the coming end to Windows XP support could bring increased adoption of the new OS. Intel needs Windows 8 to be a success for the company to have a chance to compete with the ARM-based competition, and upcoming inexpensive Windows 8 tablets are the key. The pieces are starting to fall into place for both Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC), and it will be interesting to watch.

The article A Second Chance For This Tech Giant originally appeared on Fool.com.

Timothy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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