The largest semiconductor maker in the industry is planning on generating profits or break even levels but not leaving the business any time soon.
Intel Corporation has been fairly successful in entering and gaining the tablet market but when it comes to the smartphone market, for years the company has tried and failed but it is not willing to back off any point in time. After gaining the market share for the tablet market the tech giant is now focusing on maintaining the market share whilst working on the cost structure of the company.
Ever since the American multinational tech giant has been trying to get in the mobile business it has incurred many losses and if it succeeds in meeting its goals for the year 2015, it total loss incurred would be as much as $10.56 billion, in a time span of three years. Despite of all these losses, the chief executive officer of the tech company has assured that the company is here to stay and does not, any time soon, plan to leave the business, Brian Krzanich stated at the Credit Suisse Technology Conference. This new was surprising for many people including the investors of the company.
The presentations conducted at the Intel’s August Data Center Day, it was mentioned that the total addressable market that has been served by Intel so far in terms of networking is of $18 billion as of year 2015. In the current the tech company is predicting that it will be able to capture as much as 9.5% share of the addressable market and furthermore is also expecting that it will outgrow the market with more share gains in the upcoming years.
The $18 billion market is quite a big deal for the world’s largest tech company, if these are the future plans of the largest semiconductor company, then the future seems rather bright for Intel. Currently the company is in talks and discussions with wireless carriers, service providers and telecom giants with cellular modem capabilities. In the networking chip market it is essential to have these contacts in order to grow. The chief executive officer, Brain added to his statement that it is highly essential to have both ends of the network in order to be considered even remotely relevant.
Additionally, during the call Brian emphasized on the fact that he does not want to lose more money than it already has in the past couple of years on mobile chip market. He said that even if the company cannot generate profits with this business, it will not end as the company is willing to work at break-even levels as well, because that would show positive implications for the networking chip business.
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