Intel's investment strategy
The message is clear: Intel Corp, the world's largest chipmaker, is eyeing the mobile sector as the rate of personal computer sales slows.
In the 10 latest investment deals announced by Intel Capital, the corporation's investment arm, six of them were startup companies delivering services in the mobile sector. Paul Otellini, CEO of Intel, also pledged to beef up its development team in making chips for panel computers, such as tablets, and smartphones.
It is apparent the company is planning to build an ecosystem for its mobile chips. However, the 44-year-old tech giant remains weak in the mobile sector.
Intel is determined to explore the mobile sector because PCs' shipments are slowing. The number of PCs sold in 2012 is likely to witness its first decline in more than a decade, according to a report by research company IHS iSuppli.
In June 2006, Intel sold its mobile microprocessor business to Marvell Technology Group for about $600 million and other unspecified liabilities. The sale marked the end of Intel's presence in the mobile chip manufacturing sector.
But Intel re-entered the mobile device chip manufacturing sector this year.
In June, Intel and Lenovo Group Ltd jointly released a smartphone running on Intel's Medfield platform, a system-on-a-chip package designed for mobile devices.
Intel later announced a partnership with China's second-largest telecoms equipment maker ZTE Corp in developing smartphones for European users.
In September, Google Inc-owned Motorola Mobility LLC launched its new smartphone, Razri, using Intel technology.
"We have the opportunity to redefine what computing means in your pocket and I don't see any other player in the industry with that potential," said Otellini, in an interview with Fortune magazine earlier this year.
He predicted in February that Intel's chips would be installed in 50 percent of tablet-style devices and 20 percent of smartphones by 2015.
However, the company is finding it difficult to seize market share from existing smartphone giants such as Qualcomm Inc.
Intel captured just 0.2 percent of the smartphone processor market in the first half of 2012 while Qualcomm grabbed 48 percent, said a report released by global tech research company Strategy Analytics.
"Intel shouldn't be worried just yet. Medfield is Intel's first product in the segment and is trying to establish itself as a credible player in the segment," said Wolfgang Gruener, founder of tech news website TG Daily.
Qualcomm was followed by Samsung Electronics Co, MediaTek Inc, Broadcom Corp and Texas Instruments Inc in the smartphone processor market, the report said.
"This is a marathon, not a sprint," Otellini said.
(China Daily 11/01/2012 page15)
