Tomahawk, WI 12/10/2013 (BasicsMedia) – Intel Corporation (NASDAQ:INTC) still controls the biggest chip market share. It is trailed, in second place, by Samsung Electronics. However, the company has had its fair share of troubles in recent months. These troubles have their origin in growing competition in chip-making business and the declining performance of PC market.

For many years, INTC made its money manufacturing PC processors. But as the market leaned towards tablets and smartphones, the company has been left holding the shorter end of things. What investors need to know is that, while things may not be superb for Intel Corporation (NASDAQ:INTC) right now owing to the poor state of the PC market and its lag in the tablets and smartphone chipset making, it’s just a matter of time before it returns to its former glory days.

It can be seen that, unlike most of its competitors in the chip business, Intel Corporation (NASDAQ:INTC) enjoys a solid financial position. With about $19.2 billion in cash reserves, the company can mount a war for the market control without resorting to debts. Furthermore, this solid financial base can support INTC’s new ventures for increased revenue without going into debts. This is something that many chipmakers in competition with it cannot afford.

Other favorable factors

It is projected that the decline in the PC market is going to go “bottoms up” as soon as next year. This is because corporate consumers, who account for 49 percent of PC sales, are going to require system upgrades and replacements next year. This is expected to pump more life into the seemingly wilting PC market.

Intel Corporation (NASDAQ:INTC) is also expected to up its game in the tablets and smartphones chipset market. This is expected to offset the decline in PCs going forward. Also, the company has been reported to be considering turning into a foundry manufacturer for other chipmakers. This strategy though looks desperate; it has the potential for big incremental revenue for the company without any additional operating cost, which essentially means higher net income.

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