This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Intel Missed Mobile Worse Than Facebook Did

For different reasons, this dynamic applies to Intel. What's sad is that Intel did not have to dig quite as deep as Facebook to see the future. Smartphone adoption took off like a rocket.

That much became obvious shortly after Steve Jobs wowed an audience with Apple's (AAPL - Get Report) original iPhone.

I riff understatedly (yes, that's a word) when I say Intel missed the train. The whole affair has been nothing short of pathetic. You expect delays, rookie mistakes and bombast from HP, Facebook and Steve Ballmer at Microsoft (MSFT), but not from Intel.

CEO Paul Otellini has said that his company needs to produce such "compelling" silicon that, as Apple makes decisions, it would not be able to "ignore" Intel. That's from the firm's investor day back in May. Yes, May.

We won't know until 2013 if Intel can compete in the mobile space with companies such as Qualcomm (QCOM), Broadcom (BRCM) and a whole host of others.

If Intel can't become a mobile player and the company loses any or all of its Macbook business, it will be stuck latched onto Windows 8 and the PC market. As such, Microsoft might be creating a town full of tech losers that, shockingly, could include Intel.

On Friday, Eric Savitz of Forbes relayed a note from FBR Capital analyst Craig Berger.

Berger cut estimates on INTC, in part, because of poor initial feedback for Win8 devices, with any inventory overhangs likely muting the Win8 launch. While PC chip stocks are already low, there seem to be no identifiable catalysts in place for some time to come ...

As Facebook quickly and credibly salvages its mobile missteps, Intel might end up associated with a massive series of inventory write downs in 2013. I'm not sure its reputation, various hobbies and what's turning into a massive yield (4%, as of this writing,) can keep INTC above $20 without some magic happening ASAP.

Investors have been burnt one too many times by companies who lost their way and became value traps.

At the time of publication the author was long FB and P.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Rocco Pendola is a private investor with nearly 20 years experience in various forms of media, ranging from radio to print. His work has appeared in academic journals as well as dozens of online and offline publications. He uses his broad experience to help inform his coverage of the stock market, primarily in the technology, Internet and new media spaces. He has taken a long-term approach to investing, focusing on dividend-paying stocks, since he opened his first account as a teenager. Pendola, 37, is based in Santa Monica, Calif., where he lives with his wife and child.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
HPQ $12.27 0.00%
INTC $30.28 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs