) is accelerating the development of its new mobile chip,
Digitimes cites unnamed sources within the PC industry, who
claim that the new chips will be released in mid 2013. They will
be designed to rival ARM-based processors, which have come to
dominate the smartphone and tablet market.
Thus far, 2012 has been an abysmal year for Intel's
shareholders. Year-to-date, shares of the chipmaker are down over
20 percent. Compared to the S&P 500, that's an
underperformance of about 30 percent, but when put in the context
of the broader PC trend it isn't that surprising.
Both Dell (NASDAQ:
) and Hewlett-Packard (NYSE:
) have seen their shares ravaged, as consumers shift their
computing demands away from the PC and laptop market and into the
smartphone and tablet space. Intel's 20 percent drop seems minor
compared to H-P's 50 percent decline and Dell's almost 40 percent
Intel's chief competitor in the PC/laptop chip market, AMD
), will soon be a penny stock if current trends continue. AMD's
stock has slumped more than 60 percent in 2012.
Meanwhile, chip makers involved in the mobile space have
flourished, relatively speaking. Qualcomm's (NASDAQ:
) shares are up over 13 percent this year, while Broadcom
) is up over six percent.
Earlier this week, Intel announced that its current CEO, Paul
Otellini, will retire in May. Otellini had been on the job for
several years, so his retirement may have simply been a case of
regular executive turnover, but given Intel's recent decline, the
company may be making a push to shift its entire business
There have also been rumors that Apple's (NASDAQ:
) management is considering dumping Intel as its Mac chip
supplier. While Apple's Mac lineup is a minority portion of the
overall PC market, it would be a tremendous blow to Intel if --
on top of being crushed in the mobile space -- it is losing
competitiveness in its bread-and-butter market.
) is set to release a "pro" version of its 10-inch Surface
tablet, one that will include an Intel chip. That version of the
Surface will be able to run any standard Windows application,
which may make it attractive to power users.
Still, it will be a bit heavy compared to most other tablets,
and thicker as well. Casual users who are looking for complete
portability, then, may be turned off by the device.
Shares of Intel traded near $19 on Friday.
(c) 2012 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.