Last year, Intel introduced a smartphone chip known as Moorestown, but the chipmaker had little success as smartphone manufacturers complained the chips were too huge and power absorbing. Intel has since looked to correct those flaws, and it said the new Oak Trail chip will be less power consuming, will last longer, and will give much better performance.
The Oak Trail, like other Atom microchips, will cater to a wide number of operating systems currently used by tablet makers worldwide. It'll operate comfortably with Microsoft's
Intel is about to enter a market, where, according to recent predictions, sales are on the verge of explosion. Analysts say that while PC sales will increase by only 10% compared this year, there's going to be serious upsurge in the tablet and smartphone market, and especially for tablets. Demand for tablets is expected to rise four times by the end of the year, whereas smartphone sales are expected to increase by at least half. So if you wanted to join the tablet or smartphone sector, you wouldn't find a better time than right now.
But are they a little too late to jump onto the tablet bandwagon? At present, U.K.-based ARM Holdings
Not long ago, Intel was dealt a major blow when Nokia
Despite missing the early boat on tablets, and even smartphones, Intel still remains positive in its outlook. It is hoping to introduce new processors each year from now, each being significantly more advanced than the other and more importantly, at least for buyers, less expensive. It is also going to launch a chip meant for smartphones later this year called Medfield. Intel looks set to take the handheld market by storm, but only time if the market will have it.
The Foolish bottom line
Intel has definitely come in well prepared this time. But, given the clearly defined and confined nature of the market and the problems at hand, it is difficult to predict how much of an impact Intel will be able to make. I'm rather skeptical about how well the company is going to perform, at least in the short term. Only time will tell.
Sarosh Nicholas doesn't own any shares of the companies listed above. Google, Intel, and Microsoft are Motley Fool Inside Value picks. Google is a Motley Fool Rule Breakers recommendation. Intel is a Motley Fool Income Investor pick. The Fool owns shares of and has bought calls on Intel. Motley Fool Options has recommended a diagonal call position on Intel. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Google, Microsoft, QUALCOMM, and Texas Instruments. Alpha Newsletter Account, LLC owns shares of Microsoft.
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