Education Tablets May Boost Sales for Intel (NASDAQ:INTL)

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By Lisa Bradley on October 27, 2014 Company

Intel Corporation (NASDAQ:INTC), the leading chipmaker, which came up with the idea of its educational classmate PCs especially for the countries with developing markets, did not witness much progress in its tablet segment, particularly the StudyBook tablet. However, the market expects the company to release high sale figures for its educational tablet series of 2015.

According to many market researchers and analysts, the company is expected to witness huge success in the upcoming quarters. Digitimes is of the view that the company will be able to make around 10, 00,000 deliveries of educational tablets by the end of the year 2014. These tablets are expected to replace the Classmate PC series. Moreover, the report released by Digitimes also stated that the sale figures will receive a huge bump in 2015 and the company’s annual growth rate will reach 100 percent. It is important to note here that educational tablets make up around 35 percent of the company’s shipments; by the end of the year 2015, the deliveries are expected to rise to 60 percent.

The research report released by Digitime also stated that Intel (NASDAQ:INTL) might see a decline in the sale of its classmate PCs in the year 2015 due to an increase in the sales of its educational tablets. Moreover, the countries who have already bought classmate PCs are likely to buy educational tablets in the upcoming years.

Market analysts are of the opinion that the sale of PC series will drop from 2.5 million to 2 million by the end of next year. However, the decline will be compensated by an increase in the sales of educational tablets; which are predicted to cross 30, 00,000 by 2015.

Some analysts predict the sale figures of educational tablets to reach 35, 00,000. However, it cannot be said with certainty for the orders placed by different countries depend a lot on the internal environment and political situation of the country.

The company managed to sell around 15 million tablets during the third fiscal quarter of the year 2014. However, the mobile chip segment of the company continued to post in negative numbers. The management of the company reassures that Intel will get back on its feel very soon; nonetheless, the chances of its x86 chips (mobile) getting success in the market are very low.

Market researchers are of the view that the company can make greater revenues by selling its notebook processors instead of tablet ones. Intel can benefit from the sale of its notebook processors due to the war between Microsoft and Google over cheap but effective notebooks.

Intel (NASDAQ:INTL), on the last trading day, October 27, 2014, started its stocks at a price of $33.08 and closed at an increased price of $33.13, after hitting the highest figures of $33.25. The company has a market capitalization of $164.08 billion with a (P/E) price to earnings ratio of 15.82. As far as the dividend yield of Intel (NASDAQ:INTL) is concerned, the company currently stands at the figures of 2.72 percent.