Published in Mobiles

Intel could be the Lazerus of the Mobile market

by on23 March 2015


It might be back from the dead this time

Chipzilla has launched its latest campaign to get back into the mobile market, and this time it might just get away with it.

Intel's involvement in mobile is a history of dropped balls and lost opportunities. In 1996, Intel supplied the processor for the Nokia Communicator that had early features of smartphones, it lost this to AMD. In 1999, it supplied the computer processor for the early BlackBerry, but sold the business to Marvell in 2005. In 2004, it supplied the brains for the Palm Treo 650, an early smartphone that was discontinued four years later. In 2006, it snubbed a request from Apple to make a processor for the iPhone.

Now CEO Brian Krzanich, is spending billions to gain a mobile foothold as it introduces new Atom microprocessors for smartphones and tablets.

In March, Intel announced a range of new products for mobile computing at the Mobile World Congress in Barcelona. In January, Intel combined its mobile and personal computing businesses into a single computing group.

It has formed alliances with two Chinese companies that make chips for mobile phones and consumer electronic products. And is spending big to get into the new Internet of Things market.

It's new Core M range is also getting attention from mobile PC makers and companies which want to set up wireless offices.

All this is taking its toll. Last year, Intel posted a $4.2 billion loss in its mobile group by essentially subsidizing the purchase of its tablet chips by tablet makers. The company expects its mobile group to break even in 2016.

Bryant said this was a price that needed to be paid for sitting on the sidelines for a number of years and then fighting your way back into the market.

"We will improve this. We will not continue to accept a business with multibillion dollar losses, but this is the price you pay to get back in. We are getting back in."

While it is easy to write off Intel in mobile, it is clear that there is a lot happening and Intel is prepared to spend money to get there. Already it is getting attention from the manufacturers, and maybe this time it will not drop any balls.

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