Traders shorting Intel stock had to scale back a bit when the chip giant beat the Street’s earnings estimates. Thanks to an unexpected rise in PC demand, Intel (NASDAQ:INTC) sales popped up. Whether this will be a long term trend is anyone’s guess. Up to last quarter, the PC sector has been declining quarter after quarter with no immediate relief in sight. It appears, user preferences and computing habits have experienced a sea change with the rise of tablets and both desktop and laptop PCs are feeling the heat. Since a large chunk of Intel’s total business is geared toward the PC market, Intel’s been sharing the sad fate of PC makers.
Tablet consumption patterns will rebound
According to quite a few market observers, don’t expect the PC resurgence to last. As the tablet market begins to look more and more like a commodity market, tablets look to overtake PC sales once again. It appears the race to the bottom of tablet pricing hasn’t abated. If you ever need proof of this, just look at the continued erosion of Apple iPad sales. In addition to being cheaper, tablets act as content gateways to Net users. Based solely on computing product consumption patterns, it is increasingly becoming apparent that the battle for mobile devices’ future won’t be waged on the hardware front. Apple’s vision is focused on a hardware-based mobile future. Neither would the future of mobile focus on the operating system you’re running as Microsoft would like to hope. Nope. The future of tablet computing and smartphone usage trends will focus on cloud-based content. If this is the case, expect more pain in the future for Intel.