Intel Corporation (NASDAQ:INTC), manufacturer of microprocessors and chips, launched another groundbreaking microprocessor Clover Trail + platform in the integrated digital technology space. This new chip innovation is another addition to Intel’s long list of microprocessors. It is yet to be seen, however, whether this platform will have the same success as other Intel processors have had in the past.
The new line of Clover Trail + chips is expected to give a better performance with low-power consumption and longer battery life than any Ivy Bridge processors. Since the new Z2580, Z2560 and Z2520 microprocessors are equally compatible with smartphones and Android tablets and work best with Intel Corporation (NASDAQ:INTC) mobile platforms, there is very little doubt that these latest developments by Intel will pose a threat not just to semiconductor and processor manufacturers, but to smartphone and tablet manufacturers as well.
Since these new microprocessors work best in Intel mobile and tablet platforms, it is most likely that there would be huge demand not only for Intel Corporation (NASDAQ:INTC) microprocessors but also for Intel tablets and mobile devices. The enticement to get developers to use Intel chips in the name of compatibility and improved performance has pushed the chip-maker even further up and led it toward financial well-being.
The microprocessor giant will be eagerly waiting to see how the introduction of Clover Trail + chips fares in the mobile space. On the financial front, considering its current total cash flow of $18 billion, revenues of $53 billion and net income at $11 billion, it is pretty obvious that the company is in a very strong position to continue capitalizing on its brand in the future.
Intel chips will also boost the performance of Dell Inc. (NASDAQ:DELL) and Hewlett-Packard Company (NYSE:HPQ). Samsung (NASDAQOTH:SSNLF) tablets will also likely benefit in terms of performance twofold, which will strengthen its position further in the tablet and smartphone space. The fourth-generation Intel Corporation (NASDAQ:INTC) core processor adopts the same 2nm process and 3D tri-gate technology as the Ivy Bridge designs, but distinct in terms of 3D and media performance, and this is, apparently, where its closest competitor in the microprocessor space lags behind.
AMD takes a backseat to Intel
Advanced Micro Devices, Inc. (NYSE:AMD) tried to match Intel’s technology in the microprocessor space by launching its second-generation A-series processors, which boasted of faster graphics generation, improved power management and extended battery life. But it could not salvage the firm from financial setback as it reported a 17 percent drop in its 2012 revenue.
AMD management miscalculated the mood of the market and over-concentrated on the manufacturing of microprocessors and semiconductors for personal computers; the move proved disastrous since the market was going through a transition phase where PC markets were constantly losing sheen and creating space for tablets and smartphones.
Recently, AMD disclosed its plans to hire experienced engineers to contrive low-power microprocessors like Intel’s Clover Trail + chips. It is yet to be seen if AMD’s strategy will suffice for the revival of its semiconductor and microprocessor manufacturing unit to pose a threat to Intel’s dominance in this domain. But overall, keeping in view AMD’s average annual sales figure of $6.5 billion and its over-cautious approach in pursuing other segments different than the desktop space, it appears that this relatively small competitor is still way behind Intel Corporation (NASDAQ:INTC).
From its average $6.5 billion annual sales, the figure for 2012 plummeted to only $1.2 billion, with losses of $102 million or 14 cents per share. Apart from its gross margin figure, which fell sharply from 45.7 percent to 15.4 percent, its overall revenue in the personal computer space also declined by 37 percent.
Intel is a Buy
With strong fundamentals and good investor sentiments added to the company’s low stock price and imminent buyback program, Intel Corporation (NASDAQ:INTC) is undoubtedly a buy in any case, whereas AMD still has a long way to travel before winning investors’ confidence.
The article Will Intel’s New Gen Processor Widen Leads? originally appeared on Fool.com and is written by Jeremiah Feliciano.
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