New Toys From Tech Giants: Apple Inc. (AAPL) and More: Smart Move?

Intel’s reasons for expanding its horizons stem from more than simple wanderlust. The demand for microchips in the tech industry has begun to diminish, with many companies (including Apple) choosing to create their own hardware for products like the iPhone. Intel is still bringing in revenue of nearly $13 billion each quarter, but its stock price is nowhere near what it was in 2000. If trends continue the way they are, retaining former highs will be less and less likely, unless the company goes in a completely new direction.

Playing for profits
Whether the iWatch or Intel Media create a boon or a bust for Apple and Intel, the new products prove that neither company has lost its sense of imagination or fearlessness. Even when you’re playing at the top of your game, it can still be frightening to move forward into the unknown. But this is the tech industry we’re talking about, where new innovations spring up overnight and visionaries can be rewarded a thousand times over for their efforts. For these companies, the risks of creating a new toy are scary, but the possible benefits are too good to pass up.

The article New Toys From Tech Giants: Smart Move? originally appeared on Fool.com.

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool recommends Apple, Google, Intel, and Netflix. The Motley Fool owns shares of Apple, Google, Intel, and Netflix.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.