Boston, MA 10/15/2014 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) has been successful to announce better-than-expected revenues and earnings in the third quarter. Moreover, the corporate refresh in terms of adopting personal computers has given more strength to the prospects of the company. The XP upgrade has kept the company’s business intact round the year, but Arete Research’s Brett Simpson considers this as a temporary improvement.
Intel Corporation (NASDAQ:INTC) posted a 12% jump in net income complemented by a 7.9% improvement in revenues. The results came higher than the Wall Street estimates and have been able to cool down fears of a slowdown in its business. Contrary to IDC’s forecast of decline in PC shipments, Intel reported a growth of 15% in shipments of chips. The robust performance in the latest reported quarter has given confidence to the company to draw a rosy picture for the fourth quarter as well.
Taking a pause on these expectations, Simpson told CNBC that much of the corporate refresh over the last one year happened due to Microsoft Corporation (NASDAQ:MSFT)‘s decision to end support for XP. He highlighted that the commercial PC market which forms half of the market share of global PC market and thus, the corporate refresh should be viewed as short term. The real picture will only be seen in the year 2015 for Intel Corporation (NASDAQ:INTC), when the corporate refresh effect is expected to be over. Simpson expects that the company could feel the pinch next year.
Dominance Of Others
Other than this, Intel Corporation (NASDAQ:INTC) is a slow mover in the mobile space. Simpson explained that the company spent 1.5% of its sales to produce revenues from mobile, which translates into $750 million incentives to drive 40 million tablet sales. Simpson feels that mobile space will be a difficult play for Intel, given the dominance of big players like Apple Inc. (NASDAQ:AAPL) and Samsung in the market.