Intel's (NASDAQ:INTC) difficulties in breaking into the mobile market are well documented at this point, and some analysts have begun to wonder if the company should go ahead and buy its way into the market by picking up MediaTek, a provider of low-cost, high-volume smartphone and tablet chips.
MediaTek, unlike Intel, takes off-the-shelf CPU/GPU IP and puts it together quickly into inexpensive products intended for the mass market. Intel, on the other hand, tends to develop much of its own IP in-house, and builds its chips in-house. However, a pain point for Intel has been the ability to rapidly iterate system-on-chip products based on the IP that it develops for the fast-moving mobile market.
Join Evan Niu, CFA and Fool contributor Ashraf Eassa as they discuss just why Intel buying MediaTek may not be the best use of Intel's money, particularly as Intel seems close to solving its mobile woes.
Ashraf Eassa owns shares of Intel. Evan Niu, CFA has no position in any stocks mentioned. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.