Intel could abandon smartphone market: Report

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.

3 thoughts on “Intel could abandon smartphone market: Report

  1. Don’t forget chinese companies as Rockchip,HiSilicon,Allwinner which will be more and more used in smartphones and tablets made by chinese makers!

  2. 2014 will be the Tipping point-year for x86 based SoC from Intel in the smartphone business.

    Intel have totally missunderstood the huge potential in ARMs business model where the Foundry model is the future when a lot of different component developers can make their components in Fabs that someone else owns.

    Intel’s model to own it’s own Fabs belongs to the history
    than they also totally dominated the processor business and together with Microsoft had the hegemony of the whole pc-concept.
    That will also belong to the history.

    Intel should do more like IBM to develops more
    in research and do semiconducting research
    in the progress towards future paradigm shift to quantum computers and optical computers.

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