Will Intel Lead a Television Revolution in 2013?

CHEAT SHEET Analysis: Will Intel’s new smart-TV platform boost its product pipeline?

One of the core components of our CHEAT SHEET Investing Framework requires that companies consistently produce successful products or services. The Wall Street Journal reported in March that Intel Chief Executive Paul Otellini intended to move the company beyond the computer industry, as the demand for PCs has grown increasingly weak. While Intel’s previous efforts in the TV business have failed to gain much traction, the company has seen an opportunity in the transitioning television industry. With growing number of television watchers turning to the Internet and mobile devices, smart TVs are being considered by Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) as well.

According to the WSJ, Intel has envisioned itself as a virtual cable operator, offering U.S. television channels over the Internet in packages similar to the subscriptions currently sold by cable and satellite-TV providers. Such a service would allow the company to make use of its newly released Atom processor, which has provided Intel with the means to grow beyond its traditional business and put its chips in consumers’ living rooms in increasing numbers.

But in the smart-TV sector, Intel has to face uncertain customer demand, high programming costs, and limited Internet bandwidth.

Investing Insights: Will Intel Finally Break Out?