Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Microsoft (MSFT), Intel (INTC) No Longer a Major Alliance?

Microsoft Corporation (NASDAQ:MSFT) had developed a long-standing, strong relationship with chipmaker Intel Corporation (NASDAQ:INTC), which helped Microsoft dominate the PC world in the 1980s, 1990s and early 2000s. But as the computing world has shifted from a stationary personal computer to laptop to smartphone to tablet, the “Wintel” empire’s stranglehold on computers has slowly slipping. And with the world of technology being more mobile, can this alliance remain competitive in the new marketplace of the millennium?

Microsoft Corporation (NASDAQ:MSFT)

One observer discusses the relationship of Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) and its  virtual monopoly in the personal-computer space for the better part of 20 years, but things have changed as the world has become more intermingled and more mobile. However, at this point, when one throw in smartphones and tablets into the tech world, the “Wintel” alliance makes up less than half of the tech universe, and one analysis has that market share dropping to about one-third by 2016 – while the market itself doubles in size from where it is now.

According to a recent survey, Microsoft Corporation (NASDAQ:MSFT) currently has a 44-percent stake in the combined PC/smartphone/tablet market, while Intel Corporation (NASDAQ:INTC) owns 41 percent of the market. However, by 2016, the prediction is that Microsoft Corporation (NASDAQ:MSFT) will drop to 33 percent of market and Intel Corporation (NASDAQ:INTC) will fall to 29 percent. While that is still a pretty healthy share – considering the market is expected to double, that woudl still mean a larger number of devices would be run by the “Wintel” duet – it seems liek the signals are that Microsoft won’t have the impact it has had in the past decades.

There was no indication whether these market predicition make certain assumptions about the impending Windows 8 launch and/or any future OS versions and their impacts. But while the numbers say that Intel Corporation (NASDAQ:INTC) and Microsoft Corporation (NASDAQ:MSFT) won’t be the dominant presence they have been in tech, but investors – like hedge-fund manager Seth Klarman of Baupost Group – still may be encouraged by a significant numerical growth over the next four years.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...