Can Intel Recover?

Intel and other PC-related companies face a “PC cliff” during the coming years as the iPad and tablets undercut PC sales.  With PC microprocessor sales declining, can Intel find another cash cow to drive its next generation of processors?

An Intel researcher said the company is focused on the “Internet of things” — embedding processors into everyday objects that Intel forecasts will reach billions of units a year.  My friend said that Intel has pretty much written off tablets and smartphones, which are dominated by ARM and Qualcomm.  Can Intel make the shift to machine-to-machine (M2M) businesses? And will the profit margins be enough to sustain its staffing, factories and overhead?  That’s the biggest question facing the valley now.

In 1985, I advised Intel to drop its memory business, which it had lost to Japan, and shift to PC microprocessors, which I wrote about in the chapter “Saving Intel” in my new e-book, “In the Valley of Digital Dreams.”   For a copy, check out Barnes & Noble:

http://www.barnesandnoble.com/w/in-the-valley-of-digital-dreams-sheridan-tatsuno/1111778075

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