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Intel’s Skylake a New Lifeline for the PC Market?

Anne Shields

Intel's Big Play with Its New Skylake Core Processors in the Upcoming PC Revival

(Continued from Prior Part)

Microsoft Windows 10 and Intel’s Skylake: the PC market revival?

Previously in this series, we discussed Intel Corporation’s (INTC) new Skylake chips and sixth generation core processors. We also indicated that Intel and Microsoft Corporation (MSFT), through Windows 10, seem poised to revive demand in the PC market.

Microsoft’s free offering to Windows 7 and 8 users—its free upgrade to Windows 10—has already provided a substantial initiative for consumers to hold onto older PCs and postpone new PC purchases. As a result, Windows 10 does not generate much hope for a revival in the PC market.

In addition, IDC (International Data Corporation) believes that the majority of PC consumers will upgrade their phones, tablets, and wearable devices like Apple’s (AAPL) new Watch in lieu of PC upgrades.

We’ve already discussed Skylake’s varied features, which range from improved performance, RealSense 3D cameras, longer battery life, and enhanced form factors. It’s worth noting as well that Intel’s Core M line of processors, along with its Core i3, i5, and i7 processors, are specially designed and built for fanless, ultraportable devices, 2-in-1 tablets, tablets with detachable keyboards, and traditional notebooks.

Apart from these considerable enhancements in performance, power efficiency, and battery life, Intel’s Skylake processors will also offer new wireless charging and data transfer for a wire-free computing environment. Thus, Intel’s effort to bring Skylake for diverse segments of PC market is likely to boost PC sales.

More than that, Intel expects Skylake processors to fuel a renewed demand in the recently flailing PC market. But it remains to be seen if these technological developments will spur the much-needed sales in the PC space.

Industry analysts’ faith in Skylake

According to the Patrick Moorhead of Moor Insights & Strategy, Skylake processors are likely to give the PC market a boost. It has been quite some time since users have upgraded their computers. With all the significant features Skylake offers (see previous parts of this series), users are likely to take advantage of Skylake.

Moorhead further pointed out that the forthcoming earnings of Hewlett-Packard Company (HPQ) and Lenovo (LNVGY) will provide stronger indications of PC demand. Also, these companies earnings results are likely to offer a clue if PC market is benefiting from Windows 10 and Skylake or not.

To gain exposure to Intel, you can consider investing in the Technology Select Sector SPDR Fund (XLK). Intel makes up about 3.55% of XLK.

In the next part of this series, we’ll look further into Intel’s faith in Skylake.

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