With the first quarter earnings of the year locking in, a lot of new facts about the industry have been put on the table. While a few companies have been able to keep their heads above water, a majority of them are sitting grim in red. Unfortunately, for Intel too, the year has not been off to a great start. But, instead of sitting and pouting about the situation, the company has decided to take account of the problems and focus its attention on the present and the future.
The company has now decided to shift its energy and focus from the problems infested semiconductor markets to growth centric markets such as data center/server markets and cellular (5G) connectivity. Intel’s agenda board currently reads altering its product lines and trimming 11% of its workforce by the middle of 2017.
In its immediate plan to get the company back on the winning path, Intel has decided to axe both Broxton (smartphone and tablet) and SoFIA. This step by Intel could end up having a significant impact on the company’s mobile SoC efforts. The cancellation of Broxton has come as a shocker for both customers and industry experts alike, as it was so near to its launch.
In an official statement issued by the company, Intex has rightfully conveyed its strategy and the reason behind its this decision. According to it, the company has passionately started working on its transformation from a PC company to one that powers the cloud and billions of smart, connected computing devices. Further, it will intensify its investments in order to fuel the virtuous cycle of growth in the memory, data centre, FPGA and IoT businesses, and to operate more profitable PC and mobile businesses.
Shedding light on the company’s new connectivity strategy, the statement states that the company will intensively invest in wired and wireless communications technology for connecting all devices, things and people to the cloud, and to back the communications infrastructure behind it.
Since for the time-being, Intel has decided to bow down from the SoC side of the smartphone market, this gives ARM architecture based SoCs a golden chance to gobble Intel’s market share as well and keep enjoying its number one reign.
Intel’s history when it comes to mobiles, has been quite uneventful all the way. But, seeing the importance and spread of mobile phones in this 21st life, Intel kept trying and trying but to no concrete result. Although, last year with Atom processors, there’s was a glimmer of hope that Intel has finally hit the jackpot and had a chance at dethroning Qualcomm from its numero uno position in the market, all thanks to Qualcomm Snapdragon 810 chip’s serious heat and power issues. But, by launching the absolutely aggressive Snapdragon 820 this year, Qualcomm closed the gates for Intel for once it for all.