Home Technology Intel Corporation (INTC) To Expand Server Chips Usage In Mobile

Intel Corporation (INTC) To Expand Server Chips Usage In Mobile

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Intel Corporation (NASDAQ:INTC), in a bid to catch up with the mobile revolution, is looking forward to fix its chips in the machines that will make it easier for users to access Smartphone data.

Intel Corporation (INTC) To Expand Server Chips Usage In Mobile

How it will be helpful for users?

Presently, the chipmaker is working with Nokia Siemens Oy and SK Telecom Co of South Korea to develop such chips. Intel designed chips are being installed in the base stations wireless network antennas including computers, says a report from Bloomberg. Vice president of Intel, Rose Schooler said that the chips are aimed to bring down the blocking due to excessive demand for data and services.

Putting server chips into base stations “is a multi-hundred-million dollar opportunity for us at a minimum,” said Schooler. Commercial use may begin next year, she said

Intel Corporation (NASDAQ:INTC) is fixing its chips into newer base stations after which the data useful for the customers will be saved in an attached computer. Data will reach the mobile phones faster and will also let it disconnect in order to keep the space to connect the new users.

These chips are part of mobile efforts

Intel, in order to gain respectable market share in the mobile arena, needs companies like Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), Siemens, Ericsson AB, the largest maker of wireless networks and Huawei technologies to develop hardware that will support Intel designed Chips.

Intel Corporation (NASDAQ:INTC) has put its chips to test in smart base stations following the forecast that pressure on a network will increase. According to Cisco Systems, Inc. (NASDAQ:CSCO) mobile data traffic will increase 13 times more, from between 2012 and 2017, which in terms of compound annual growth rate is 66 percent.

Intel Vice president Rose Schooler said that the biggest challenge is unavailability of enough Spectrums. “It’s about how do you add intelligence and bring the cloud out to the user?”

Intel 2Q earnings, items to watch for

Intel Corporation (NASDAQ:INTC) has been struggling due to the increasing popularity of mobile devices and dropping demand of PC’s. In order to counterbalance the affect of declining PC sales, Intel forayed into fixing survey chips in the machines.

In the first quarter of 2013, server chip business segment sales increased 7.5 percent to $2.59 billion, compared to 6 percent drop in PC Chips sales to $7.99 billion. It will be interesting to watch the performance of both segments in the second quarter earnings report, which will be announced on July 17.

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Aman Jain
Personal Finance Writer

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