Intel Corporation (NASDAQ:INTC), the world’s largest maker of processors for personal computers (PCs), believes that the decline of the traditional computing device will continue as consumers shift to new mobile devices such as smartphones and tablets.
In an interview with Bloomberg TV, Stacy Smith, chief financial officer of Intel Corporation (NASDAQ:INTC) emphasized that the trend in the transition of the PC market to mobile computing is apparent. He said, “What you’re seeing is a transition of the classic PC market into these kinds of things. If you think about the PC as being a classic computer that you might have used two or three years ago, I think that device declines.”
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Intel leadership focused on low-power designs
Smith also emphasized that Intel Corporation (NASDAQ:INTC) is leveraging its manufacturing leadership to succeed as the PC market continues to decline and transitions to mobile computing. According to Smith, Intel has a great manufacturing leadership and it is increasingly investing its manufacturing capability into lower power devices as part of its design and targeting strategy.
“We’re targeting those designs and really focused on that with the full might of the company and the full power of our manufacturing engine. Intel doesn’t enter into markets to have small amounts of share,” said Smith.
Intel reaching for broad spectrum of devices
He is confident about the target designs of Intel Corporation (NASDAQ:INTC) for mobile devices. According to him, “We are winning phone designs; we won an iconic tablet design with the Samsung Galaxy tablet. You can see the PC market transition from desktop to notebooks to now these 2-in1 very thin and sleek devices, and that’s happening because of our product line.”
Intel sees a changing landscape
Furthermore, Smith said that Intel Corporation (NASDAQ:INTC) is focusing its manufacturing capability into a broad spectrum of devices, which have common features that require silicon with different uses such as to drive power down, reduce costs, and to increase performance. He said Intel is the only company with the ability to target a broad range of devices in computing, and bring solutions to every segment of the market.
Meanwhile, Intel Corporation (NASDAQ:INTC) discussed the changing landscape and strong growth opportunities in servers during its “Reimagine Datacenter” event in San Francisco on Monday. The company also provided details regarding its 14nm Xeon processor E3 family called Broadwell and Atom C2000 product family.
The 14nm Xeon processor E3 family is an atom-based version called Denverton, which features 5x performance at equal power while the Atom C2000 product family offers a 7x performance improvement and 4x power efficiency. Currently, Intel Corporation (NASDAQ:INTC) boasts 50 design wins for both products.
Analysts at Baird Equity Research recommended an Outperform rating on shares of Intel Corporation (NASDAQ:INTC) with a price target of $26 per share.