Intel Shifts Focus To Tablets and Phones With Atom Chips As PC Sales Slump

Chipmaker Intel has been floating in troubled waters with the falling demand for Personal Computers globally. Profits and revenue for the company fell two consecutive years according to their fourth quarter report released recently. In this earnings call, the company suggested that they would now be shifting focus to the growing markets such as tablets and phones.

While Intel has been a leading provider of chips for personal computers, they have not been able to move to the emerging markets of tablets and phones. This market is currently dominated by Qualcomm Inc and Samsung Electronics. As Intel shifts focus to tablets, they aim to provide Atom chips to 40 million tablets in 2014. This is four times the tablet market it had acquired in 2013. 

The day after their earnings call, Intel also announced that the company would be cutting jobs by 5% of the total headcount of 107,000 on their payroll in December. 

PC World has reported that Intel plans to pay tablet makers to use their chips. The idea is to cover up the costs they would face when shifting from ARM-based processors to Intel’s Bay Trail chips.

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