Low average chip prices for tablets
The win for Android tablets and Windows 8 tablets bode well for Intel, but the ASP (average selling prices) remain low. The worry of low margins is also holding back Intel shares. The worry is unfounded, because Intel will increase its R&D to develop less expensive ways to develop mobile chips.
The low multiple for Intel makes the chip maker a company to hold. The PC market may be mature, but the Haswell chip refresh will initiate another cycle of upgrades. Intel is also slowly, but steadily, building its position in the mobile space. Any profit taking in Intel shares should be viewed as an opportunity to consider being bullish in Intel shares.
Written by Chris Lau, Kapitall Contributor