Intel Unveils Its Smart Phone and Tablet for 2012

Although the majority of computers and servers are powered by Intel silicon, the company has still yet to find success in the mobile sector.

Up until this point, Intel’s previous mobile efforts have mostly floundered due to a lack of power management features.  Some Intel chips were achieving roughly 1/2 the battery life when stacked up against various ARM-based chip designs from Apple and Qualcomm.

Another snag is that Intel’s chips are designed for the x86 instruction set, while most of the popular smartphone operating systems are designed for ARM and other more simplistic instruction sets.

Even though some of Intel’s poor decisions were technical in nature, they also made some huge strategic gaffes along the way.

(1) Intel decided to focus on the Netbook segment, which was only a short-term mobile computing fad that has been quickly canibalized by tablet sales.

(2) Dating back to 2005, the company was fixated on the idea of “Mobile Internet Devices” or MIDs taking over the computing world.  MIDS were larger than smartphones but smaller than a tablet.  

Given Intel’s vast resources and influence in the tech world, it’s a shocker that the company still has yet to deliver any viable smartphone or tablet CPU.

Although “chipzilla” has yet to hit paydirt in mobile, Intel isn’t about to throw in the towel anytime soon.  The company recently unveiled their new Medfield chip and they are looking to earn some major design wins in 2012.

As I’ve started before, I always view Intel’s mobile products with a shred of skepticism because I’ve witnessed so many disappointments and setbacks.

I really don’t think Intel has it in their DNA to deliver a truly great mobile product anytime soon. The pace of innovation in this sector is so rapid and the competition is so stiff… Intel simply can’t keep up.

Will they succeed in 2012?  I have my reservations.

Failures start to add up after a while… especially when you are 10 years into a business, you’re on 5th generation Silicon, and you still have 0 customers.

It’s sink or swim time for Intel and their opportunity to get into mobile devices is rapidly slipping away.

Check out the full details over at Technology Review

Disclosure: Rob currently owns a long position in $ARMH and $NVDA at the time of this writing.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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