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Intel makes inroads into mobile

by in Enterprise Tech.

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Attendees inspect Intel UltraBooks during the 2013 International CES. Getty Images/Justin Sullivan

Attendees inspect Intel UltraBooks during the 2013 International CES. Getty Images/Justin Sullivan

Intel has been actively seeking a foothold in the mobile market, but as a chipmaker, it has faced stiff competition. The semiconductor manufacturer had led the world in chip sales for personal computers, but with the slide of the PC market comes new challenges for the company. Rivals like Qualcomm – dominating mobile chip tech sales thus far, and the developments of other processor makers including Advanced Micro Devices, which is developing microprocessing units for the “smart device” industry — present obstacles to Intel’s mobile success. (The company has gone so far to acknowledge that it will not supply LTE-capable processors until 2014.) Making moves in recent months to appeal to mobile players – partnering with China’s Baidu, for example, to work with Chinese software makers – has set Intel on a definitive but tenuous path towards the mobile market. But, finally, it appears as though a breakthrough arrives for the chipmaker, and it’s coming from Samsung.

Samsung will use Intel chips in its Galaxy Tab 3 10.1 – the company’s next version of its flagship tablet. Intel’s Clover Trail+ mobile chip is the choice processor, and will join Intel’s other hardware inside Samsung’s less-popular line of ATIV tablets running Microsoft Windows. To have its chip featured in such a mainstream device could be Intel’s much sought-after opportunity to solidify its presence in the mobile market. And the timing could not be better.

The International Data Corporation reported on May 28 that the number of PC shipments in 2013 is expected to more rapidly tumble than previously thought – reiterated by venture capitalist Mary Meeker in her annual Internet Trends Year-End Report this week. The research group pointed to the sharp rise in tablet sales as the culprit responsible for desktop and laptop lags. Gaining a spot in Samsung’s popular tablet devices will provide Intel the vital slot in the tablet market that is projected to soar beyond the PC market this year. The news is also a huge win for the company’s newly-appointed CEO, Brian Krzanich, who publicly gave his vow to successfully launch Intel into new mobile territories.

Even as Intel makes inroads into the tablet scene, reports detail its foray into another market gaining traction: the internet of things. Forecasted to be a $4 trillion market by 2020, the machine-to-machine technology sector is growing past its infancy, and chipmakers look towards the future of the smart device and wearable technology. It’s possible Intel has learned from its mistake in not abiding by the quick adoption of mobile technologies, and will begin the next chapter of processor manufacturing for everything from the smart home to the smart toothbrush.

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  • iceroadman

    I think a lot of these analysts are missing the point about PC sales. I have a 7 year old PC I built with Intel MB and Core 2 Dual processor and when it seemed to be getting slow I dumped the HDD for an SSD and installed Win 7 on it. The processor is more than enough horsepower for my child to do his gaming and stuff.
    The point is that PC’s have so much power these days that there is no need to replace them. Upgrading the drive and video card for gamers is about all you have to do to stay in the game.
    I suppose tablets and smart phones would have had a bigger impact on notebooks since them can mostly do the same thing these days.

    • JulianaKenny

      Your last point is precisely the issue with mobile vs. PC: Unless you’re a gamer, handheld devices now nearly do exactly what you would do on a PC. Users outside the gaming sector only need to replace PC hardware every 4-8 years at this point. It is of my personal opinion that the PC market will not experience the decline that is forecasted as dramatically simply because of the continued need for PCs in the enterprise. BYOD is still in its infancy.