Intel Corporation (INTC), the leader in microprocessors for PCs, lagged behind in the smartphone and tablets markets by missing on the bandwagon, and concentrating on the declining PC market. The company lowered its guidance for 2014, bringing price down by 5.4%. Unlike his predecessors, Brian Krzanich, Intel's CEO, openly accepts the company’s lost position and is ready to manufacture chips for other chipmakers in order to capitalize on the competitive advantages that Intel still enjoys in the semiconductor industry.
Lowered guidance and missed revenue estimates have become prevalent among traditional tech giants. Earlier this month, Cisco Systems, Inc. (CSCO), the data networking equipment leader, lowered its guidance and expects an 8-10% decline in its revenues due to headwinds in emerging markets and slow order growth from service providers. International Business Machines Corporation (IBM), another tech giant, missed on revenue estimates consecutively for the sixth quarter due to a decline in orders from its growth markets. Microsoft Corporation (MSFT) did not lower its guidance for this quarter—having learnt its lesson in the preceding quarters, it was quick at changing its strategy so as to avoid future declines.
No comments:
Post a Comment