What this tells me means is that, while revenue might remain unimpressive amid the company's mobile transition, that gross margin arrived better than expected demonstrates that management has figured out ways to bring operational efficiency to the business. In other words, Intel may be down, but the company is in solid hands.
What's more, investors should be encouraged that management has laid the foundation for the company's long-term success, which includes reinvesting cash flow back into research and development.
Here again, I'm not saying that the Street should expect an imminent revival in Intel to the extent that the company, which, along with
(MSFT - Get Report)
once ruled the tech world. In fact, I'm saying quite the opposite.
I believe that with Intel's world-class technological and manufacturing capabilities, it's a mistake for investors to assume that management won't make the necessary adjustments to grow market share in mobile.
To that end, there have been recent developments to suggest that mobile device manufacturers have begun to take notice of Intel's progress. That
recently announced that it had chosen Intel's Clover Trail+ mobile chip processor to power its Galaxy Tab 3 is a perfect example. This proves that contrary to popular opinion, Intel can, in fact, optimize
I don't believe that Qualcomm, which is the leader in the mobile chips market, is terrified of Intel's small steps, but it doesn't mean that the company is incapable of making giant leap. That leap may arrive when Intel finally enters
iPhones and iPads.