Tomahawk, WI 12/04/2013 (BasicsMedia) – Intel Corporation (NASDAQ:INTC) has been trying to diversify for the longest time, ever since it learnt that it cannot afford to continue waiting to make money from PC sales, which are dwindling everywhere in the world. However, it faces numerous challenges from many quarters, especially from Wall Street, which appears to be less enthusiastic about some of the plans the company has developed. There are two plans of diversification that Intel has; and they are, to open an Internet TV, and entering the mobile phone business to compete with established names.

Wall Street Yet to be Convinced by Intel’s Diversification Plans

Wall Street and a number of analysts appear to be questioning Intel’s ability to offer service that can withstand serious competition from other established brands, especially on the mobile phone industry. Intel seeks to go into the mobile phone business in order to help drive its revenues and margins higher than they have been for a while now. The voices of doubt coming out of Wall Street have seen the company’s shares drop by as much as five percent in the last two to four days. If Intel convinces Wall Street experts that it make higher-margin chips, its shares will gain.

Intel Corporation (NASDAQ:INTC) needs to show its mantle by developing higher-margin chips that will be used to supply the Smartphone and table markets with the perfect solutions. PC sales cannot get better or dislodge those of tablets and Smartphone devices, and Intel needs to follow suit by producing solutions that are geared for this market. Evolution is not something that Intel can avoid at this rate. It needs to show proof of its ability to withstand the huge pressure placed on its shoulders by investors and Wall Street alike as it seeks to turn from a loss making to a profit-making firm.

Intel’s Top Executives Admit the Erred

Intel Corporation (NASDAQ:INTC)’s top executives, in a meeting with Wall Street officials last week, indicated that they accepted the blame for underrating the influence of mobile phone revolution. According to them, they never thought the mobile phone industry would grow the ay it had, and believed it would only last a few years, before PCs continue with their resurgence. They admit that they were very slow to respond to the new developments that are a serious threat to PC sales, but having seen their mistake, they are now willing to come up with new and better solutions to make profits.

It will take more than this sort of admission to help Wall Street have a change of heart, where Intel is concerned. The company needs to diversify and start developing new products, but to do so, it must first start by convincing Wall Street and its shareholders that this is the best course of action. Since its success is entirely in its hands, there is nothing else it can do apart from working hard to convince shareholders and Wall Street that it knows what it wants, and has a clear plan of how to achieve its goals within a specified span of time, and these will help it increase revenue.

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