Just like any other firm which is eyeing on an attractive opportunity Intel Corporation (NASDAQ:INTC) has shown signs of venturing into production smart phone wireless chip. It is in this regard that we can reiterate the fact that a number of companies have enjoyed monopoly in the production of specific wireless devices as well as wireless chips. Every smart device has a wireless chip crucial for aiding wireless transfers as well as wireless communications.
Facts behind Wireless Chips
Without wireless chips in our mobile devices, it could have been difficult to share information, music and videos. Wireless devices are dependent on wireless chips fitted into such devises. Specialization is what has been helping different companies to stand strong in the markets but with diverse forms of market liberations, rivalry has been ignited. Market liberalization is what has led companies such as Intel to show interest in producing wireless chips; a production line belonging to QUALCOMM, Inc. (NASDAQ:QCOM).
It is estimated, however, different mobile or smart phone producing companies are dependent on QCOM as far as the production of wireless chips are concerned. The demand for such chips means that different companies have seen an attractive opportunity of being one of the producers as well as one of the competitor in such a line of production. It is estimated that up to about 47% of the wireless chips are produced by two main companies and INTC is one of them.
Sustaining Profit Margins by Adopting In-House Production of Wireless Chips
The largest manufacturers of wireless chips have shown their profitability in stocks trade listed on the NASDAQ stocks during the month of March, 2017. Apple is one of the many companies which utilizes wireless chips and other related product and from the look of things, other companies are looking for an opportunity of producing such products in their premises hence avoiding costs associated with outsourcing of such products.
The production of wireless chips has been a lucrative business over the years because of the ready markets offered by the mobile device manufacturers. In the event that such devices are produced by the manufacturers of mobile smart devices, then I would mean that there would be a reduced market for the original manufacturers.