Why Intel hopes to cheer the PC market with Broadwell

Intel's growth strategy and offerings in the PC market (Part 4 of 17)

(Continued from Part 3)

Intel’s new processors are aimed to revive flailing PC market

As we discussed earlier in this series, Intel’s (INTC) PC Client Group contributes more than 60% towards its overall revenue. As a result, stability and growth of PCs is integral for its own growth.

With its newest line of processors—fifth-generation Core M Broadwell processors—it plans to revive the flailing PC market.

According to Jon Peddie Research, AMD (AMD), Intel, and NVIDIA are leading players in the graphics market. They held 20.7%, 62.9%, and 16.3%, respectively.

If you are hopeful of Intel’s measure to yield profits, you can consider investing in the Market Vectors Semiconductor ETF (SMH) or the Powershares QQQ Trust (QQQ). Intel makes up about 19% and 3.41% of these ETFs, respectively.

In early January, Intel launched its fifth-generation of core processors—Broadwell—for PCs and top-end laptops. It offers higher performance, longer battery life, and improved graphics capabilities—compared to its fourth-generation predecessors.

Interesting features aimed to push upgradation

Broadwell is built on 14nm rather than 22nm. This implies that its CPU (central processing unit) is physically smaller. It translates to less power requirements. However, it maintains the same clock frequency.

As a result, Broadwell processors—that run on Microsoft (MSFT) Windows—are expected to be more power efficient and cooler than their predecessor, Haswell. Laptop users will find this to be good news. It will provide a 30% longer battery life, all else being equal. Intel has the policy of upgrading its processors every 12–18 months.

Its new line of chips is intended to convince more customers to upgrade their PCs or consider purchasing a high-performance laptop or desktop. This is because in spite of exponential growth in mobile devices, there’s a plethora of heavy-lifting computing jobs—like graphics processing for video games or video editing—that these mobile devices aren’t good at handling.

Also, it includes interesting features. RealSense Technology allows users to scan 3D objects. Also, users will have the ability to wirelessly dock a PC. This will enhance the customer’s decision to upgrade.

Continue to Part 5

Browse this series on Market Realist:

Advertisement