Intel Accepts Defeat and Stops All Development For the Mobile Space

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Intel was a company that was considered to be almost untouchable for years to come thanks to its dominance in the PC space. Its chips were technologically superior to anything the competition had on offer, it had plenty of money in the bank to out-research everyone in the market and had vendors falling over themselves to work with it.

All of these reasons make Intel’s fall so spectacular.

Admitting Defeat

Intel recently announced a below than expected return for the financial year and is expected to lay off close to 10% of its entire workforce. The company has not been able to make any headway in the mobile or tablet space even after paying companies to use its chips.

For a company that prided itself on the high margins it commanded, this change in strategy was due to a realization that it had miscalculated the shift of balance from the personal computer to mobile devices.

Now, news has emerged that Intel is stopping all work on its Broxton and SoFIA SoC’s being built specifically for the mobile space. This means that Intel has just basically conceded the entire smartphone and tablet space to its competitors.

Any little remaining market share that was not owned by ARM-based SoC’s is now there for the taking. The Broxton SoC was supposed to be based on the latest 14nm cores from Intel and promised a considerable increase in power and efficiency. The expected release for Broxton was barely a few months away and so one would have to assume that it was very close to having been finished.

The decision to cancel a product so late into its development cycle has taken the tech world by surprise who are now investigating if the malaise I Intel is deeper than it first appeared.

Seeing as how the PC market continues to shrink, the future looks a little dicey for Intel right now. Intel has released a statement that these cancellations will allow it to focus its energies and resources in areas which promise higher returns and are in line with its future strategy.

Some of these areas mentioned by Intel include the Cloud, 5g connectivity, and server management solutions. The biggest market among these right now is the cellular modem market, one that is dominated by Qualcomm and is going to be difficult for Intel to just waltz in and take over.

Intel Will Continue to be seen in High-End Convertibles

While there is some speculation as to the future of Intel in low cost and often low powered tablets, the company will continue to make a play for the high-end PC market. Convertibles and  2 in 1’s have been identified by the company as a growth market and its chips wielding the Apollo Lake architecture, announced earlier this month, will be looking to power as many of those devices as possible.

Intel is not quite a Nokia level disaster just yet but a lot will have to go its way over the next few years, otherwise, it will soon be relegated to the ranks of other notable failures from the great PC age.

 

 

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