Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC), the two dominant forces in the PC world over the past two decades are both making moves in China, a sign of the collective transition both companies are in the midst of as the PC business slowly gives way to the mobile one. Forbes today commented on the efforts of both companies in the world’s largest PC and smartphone market.
For Microsoft Corporation (NASDAQ:MSFT), they are in the process of smoothing tensions in China, where they’re facing an antitrust suit and have suffered other stumbles. CEO Satya Nadella is in the country on a two-day visit, his first overseas trip as Microsoft Corporation (NASDAQ:MSFT)’s head. While the trip had been planned for some time, it couldn’t have come at a better moment.
The trip gives Nadella the chance to discuss Microsoft Corporation (NASDAQ:MSFT)’s antitrust case directly with Chinese regulators, who claim some of Microsoft Corporation (NASDAQ:MSFT)’s hardware and software is anti-competitive in how it’s distributed, by its inclusion of DRM, and other factors.
Microsoft Corporation (NASDAQ:MSFT) also raised hackles in China after it purchased struggling mobile phone maker Nokia and promptly purged 12,500 of its workers, thousands of whom were in China. Still, they are the first overseas company to launch a China-based cloud business, Azure, part of their increasing emphasis on the cloud.
Intel Corporation (NASDAQ:INTC) meanwhile purchased a 20% stake in Chinese smartphone chipmaker Unisplendour, another aggressive move to try and make headway in the mobile chip segment, which is currently being ruled by ARM and Qualcomm-based chips. The $1.5 billion move is in addition to the $1 billion Intel’s mobile division is already losing quarterly as it heavily subsidizes smartphone makers to include its chips in their phones.
Intel Corporation (NASDAQ:INTC)’s mobile division has struggled to match the continued success of the other divisions, which earned over $13.7 billion to the mobile division’s mere $53 million. Intel Corporation (NASDAQ:INTC) has been the best performing stock on the Dow during the last year in spite of that, up over 40%.
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