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Are Samsung, Research In Motion Ltd (BBRY) and Intel Corporation (INTC) Doomed?

Intel is getting massacred in mobile

Bench marks have surfaced for Snapdragon 800’s performance. The next generation Snapdragon graphics chip may stomp Intel Corporation (NASDAQ:INTC).

Source: Anandtech

Ashraf Eassa from SeekingAlpha states that the next generation QUALCOMM, Inc. (NASDAQ:QCOM) Snapdragon 800 is better by 71% in graphics when compared to Intel Corporation (NASDAQ:INTC)’s upcoming Z3770.

In the semiconductor space, the most important thing is designs wins. If Intel isn’t able to release a more superior processor it won’t sell. Samsung, HTC, and Motorola won’t go out of their way to ship inferior products by including an Intel chip.

Remember, the PC market is slowing so Intel Corporation (NASDAQ:INTC) needs to grow in mobile.  Based on IDC forecasts, the PC market will only grow by 1.9% from 2014 on.  The PC business is Intel’s most profitable business, and if its only going to grow by 2%, then Intel Corporation (NASDAQ:INTC) may have a problem.  What’s worse is that the company is heavily burdened with fix costs from building out factories that are currently underutilized.  Analysts expect Intel to report a 4.5% decline in revenue for 2013.

Conclusion

Both Research In Motion Ltd (NASDAQ:BBRY) and Samsung will lose market share within the United Sates in the coming years, thus lowering profitability. The loss of profits should cause the stocks to fall. Intel Corporation (NASDAQ:INTC) is finding it difficult to crack the mobil market and is experiencing issues across all of its product segments.  Perhaps its time to avoid Samsung, Research In Motion Ltd (NASDAQ:BBRY), and Intel. Perhaps Apple Inc. (NASDAQ:AAPL) and QUALCOMM, Inc. (NASDAQ:QCOM) are the way to go.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Apple and Intel Corporation (NASDAQ:INTC). The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL) and Intel.

The article Are Samsung, BlackBerry, and Intel Doomed? originally appeared on Fool.com.

Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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

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