Intel Struggling To Offset Declining PC Market
Quarterly results from both Intel and Qualcomm show the difference between PC and mobile markets. While Qualcomm is taking huge advantage of being a mobile processor manufacturer, it seems Intel is struggling to offset declining PC market.
While Intel Struggles to offset declining PC market, Qualcomm shares have gone up by 7% after a series of mobile licensing deals in China. In order to offset declining PC market, Intel is looking to leave PC business behind and is looking towards cloud computing. The company’s income has halved to $1.3bn after it took a $1.4bn restructuring charge in Q2.
In order to save cost and make their way forward towards cloud computing, Intel is also going to be laying off 12,000 employees, half of which have already left the company. This is all due to the declining PC market and the fact that Intel is just not able to cope with it. Intel is now looking to enter into new venues. Intel is looking to change its focus from PC to cloud computing.
At the Qualcomm side of things, the Samsung flagship smartphone Galaxy S7 outsold the iPhone 6S which in turn resulted in Qualcomm shares going up by 22%. Here we can clearly see the gap created between the PC and mobile market and how mobile markets are getting more and more profitable by the minute and the declining PC market is taking big names down with it.
Geoff Blaber, noted Qualcomm’s “confident tone” on the licensing deal make in China. He said the following in a tweet:
“Big progress from a few months ago and big impact on share price.”
Qualcomm’s forecast of $6.2bn in sales for this September quarter was higher than what Wall Street’s current forecast is. Intel struggles to offset the declining PC market while Qualcomm boasts huge numbers and deals.