It tried hard to squeeze its way into the smartphone market. But with Qualcomm and Samsung ruling the market of mid-to-high end chips and MediaTek powering a host of entry-level models, Intel is reportedly questioning its future in the smartphone market.
According to a report by DigiTimes, the chip maker has internally started evaluating whether it should exit the smartphone market in 2015 provided it continues to register weak performance in its handset business in 2014.
Intel’s deal with Chinese manufacturer Lenovo to supply chips for its smartphones has now ended. The processor giant, however, is reportedly working on other partnerships to replace the deal. Asus also released the Intel-powered Asus Zenfone series at CES. The new line of smartphones—featuring 4-inch, 5-inch and 6-inch models—will be released in March, mainly aimed at the China and Southeast Asia markets.
Intel has also set itself an ambitious goal of getting its chips into 40 million tablets in 2014. The company is trying to reach its target by giving some significant incentives for manufacturers to use its chips.
”Basically, they’re making an investment to make up for them being slow to get into the market,” said Dean McCarron, principal analyst at Mercury Research.
Intel has lined up its new Merrifield-based 22nm processors for smartphones for launch this year. The company plans to show off the Merrifield-based dual-core 2.13GHz Atom SoC at Mobile World Congress (MWC) in Barcelona next month.