#6 Intel Has No Role In Tablet And Mobile Chip Market

Intel is the undisputed king of the big high performance chips that powers the servers around the world. But when it comes to a market that generates cash, may be 10 times more than the server market, Intel has no place.

The semiconductor giant falls behind QUALCOMM, Nvidia and other competitors with a market share of just 0.2 percent in the mobile space. Companies like Samsung and Apple had already started developing chips for their own mobile devices and even other companies including Amazon will soon be creating custom microprocessors.

#5 Moving To Mobile Will Be Suicidal

Intel’s high performance chips powers almost every ultra-thin laptops out there. But Intel and its partners are so long been failing to sell this highly priced Ultrabooks, whose major portion of the revenue goes in credit of Intel’s high performance chips. Compared to these nearly $1000 Ultrabooks, the small chips that powers the brain of Smartphones and tablets will cost $10 to $25.

According to Vijay Rakesh, a senior analyst at Sterne Agee, who spoke to Mashable, “the Atom processors that Intel is now making for tablets running the expected Microsoft Windows 8 operating system are priced at $42-$47, but intel’s margins on these chips are a fraction of those it makes on PC processors. With Atom, they have to make it work, and I think they are making it work, but the question is, will it dilute the margin structure that Intel has?”