Recently, with the Intel halted the code-named Broxton (mainly for high-end) and SoFIA (mainly for low-end) mainly for smartphones in the two "Atom" (Atom) series processor product line development, many analysis and comment on that, it marks the Intel has abandoned for smartphones and tablet computer chip market competition.
Strict sense, the conclusion is not accurate, because after Intel CEO family again, (Brian Krzanich) emphasize the baseband chips (modem chip) market potential, and rumors of apples this year new iPhone7 may part (the proportion in 30%) according to the Intel baseband chip seems also to testify the Intel's efforts, as smart phones, the industry know that to some extent, mobile chip test is of SoC (system on a chip) integration ability, this, the role of baseband chips and strength than application processor. So we think that Intel is not out of mobile chip market, just put more resources and energy in the baseband chip.
In spite of this, as at the beginning to enter the mobile market, original intention and the target is mainly in the application processor (that is, the industry take a fancy to and evaluation criteria of Intel in mobile chip market success or failure) of Intel still difficult, decline the decline of yan in the mobile?
When talking about the decline of Intel in the mobile industry always think its too late in the mobile market are closely related. Have a point, but not quite, because as early as in 2011, Intel has announced in Atom processor series mobile market. And then the outbreak of the smartphone market is in rising stage, the chip market is much less than the fierce now (in addition to qualcomm, mediatek, huawei, apple, samsung is far from the research of mobile phone chips showed such advantages) today, that is to say, when Intel entered the mobile phone chips market timing is not late, so the question comes, why Intel fail to seize the moment?
As is known to all, Intel's first entered the mobile chip market main or compared with mobile chips based on ARM architecture has the advantage of performance. But the reality is far from simple as that. That although in some standard software running points, Atom series is equally the ARM chip performance is strong, but in the practical application of Android phones, due to reasons such as compatibility, performance in the standard software running points ahead of the Atom processor in the performance of the series of sharp decline, combined with the application of smart phones for performance requirements are not as now so urgent, this makes the Intel Atom chip performance advantage of discounted at the same time, it amplifies the soft rib of power consumption is too high. Thus it can be seen that Intel was overestimated their performance and miscalculation of Atom chip series mobile market demand for the core of the chip.
More deadly is, and then to add to the development of mobile chip, Intel deliberately slowed the Atom chip series of innovative technology applications, the most typical performance is in terms of chip manufacturing process, process technology of use always lagged behind its traditional PC chip for at least a generation, but the fact is known to all, in the chip industry, process technology, both for the improvement of the performance of the chip and reduce the power consumption of are crucial. In Intel deliberately slow down the innovation technology adoption at the same time, based on the innovation of the ARM chip is continuously strengthen, and ultimately reflect on the performance of catch up.
Why Intel mobile decay: both in technology and market strategy made a mistake
Relevant test shows, for example, apple iPhone 6 s A9 chip single-core performance is much higher than 1.1 Ghz version MacBook (carrying dual Core four thread Core M - 5 y31 processor), multi-core score is close with the latter, in addition, A9 processor single-core performance is better than version 1.2 Ghz Mackbook. As for more robust performance used on apple Pro A9X chips, according to the test, the operation ability has been more than 12 inch MacBook configuration Intel core M chip, although far lagged behind the high version of the configuration of the MacBook Pro core i5 and i7 chip, but A9X computing power is not lost in the low version with the MacBook Air core i5 configuration. Want to know, whether Intel core M or core I series chips, their performance on the Atom, the Atom in mobile chips (mainly refers to the smart phones and tablets) position (performance advantage has gone), and to be embodied in the actual market that many of Intel's mobile chip partners have abandon the Intel Atom chip series. Such as lenovo in its original K series flagship machine USES the Intel Atom chip after soon turned to the ARM chip, and has always insisted on using Intel mobile chips asustek recently decided to slash in his smartphone Zenfone USES the proportion of the Intel chips, after allegedly shrink ratio is only 20%.
If the above is in the development process of Intel's mobile chips Intel technical errors, then began in 2014 with huge subsidies hard against the tablet chip market move is of the failure of market strategy.
Allegedly, when Intel's subsidy is very rich, involving marketing tablet manufacturers, chip sales price is very cheap, even in the case of Atom chip flat unsalable, manufacturers can reduce the loss of subsidies from the Intel. And the bear stearns, a research firm, the report estimates that Intel spent on every Atom flat $51 (more than 300 yuan), and in view of the world of Android tablet prices are lower, the vast majority of sold for less than $200, Intel's figure is equivalent to a quarter of the Android tablets price, which makes throughout 2014, Intel's Atom tablet chip are sold on the gross profit margin is zero level, and haven't calculate the refund chip.
It is this market strategy, lead to Intel mobile chips in 2014 alone high loss of about $4 billion, plus a loss of $2013 in 3 billion, its total losses of $7 billion, due to last year, Intel will move chip unit, which is mainly composed of PC chip into the client computing department, concealed the loss of mobile chips, but it is said that from 2013 to 2015, this three years, Intel mobile chip business total losses of up to more than $100 already.
As the saying goes: money is spent on the blade. In spite of 3 years of losses of more than $100 (about $3.3 billion per year on average) for $55.4 billion in annual sales (in terms of 2015 revenue) of Intel is not bone, it is important that Intel paradox in the market strategy itself exists. Due to subsidies object is more small and medium-sized brand tablet PC makers, the subsidies will not bring brand effect to Intel in the mobile market, and as a result of these lower brand are in existence and the edge of bankruptcy, once Intel reduce or eliminate subsidies, these brands will cost without hesitation for the sake of the survival of the lower ARM chips camp, subsidies for Intel before investment and access to markets, and it is confirmed from after the actual market.
In Intel announced last year to reduce, even cancel subsidies for tablet chip, its Atom chip sales volume all the way down, to the first quarter of this year, Intel's tablet chip deliveries plunged 44%, delivery of the tablet chip for 4 million pieces, huge subsidies is only 2014 full-year 46 million (11.5 million) quarter shipment delivery of around 35%. To be sure, Intel chose such a subsidy policy from the side also reflects the Atom chip technology strategy error series. Use market strategy make up the technical strategy of error, but unfortunately, the final results show that, rather than make up for, it is two kinds of strategy error stack, accelerated the decline of Intel's mobile chips.
Why Intel mobile decay: both in technology and market strategy made a mistake
As mentioned in the beginning, when Intel halted the code-named Broxton (mainly for high-end) and SoFIA (mainly for low-end) mainly for smartphones in the two "Atom" (Atom) series processor product line development, the market is the last chance to baseband chips in a mobile chip, and this opportunity will become a reality, it remains to be seen whether this year apple iPhone7 will as part of the use of Intel as rumours of baseband chips (7360 7480) or XMM XMM, as compared with the application of chip (according to market research firm Strategy Analytics data, by the end of last year, Intel's mobile phone chips in the global market share of just 1%), while Intel in baseband chips had a better performance, but also accounts for only 4.6% of the world's baseband chip market share, lags far behind the first 68.8% of qualcomm and second ranked mediatek 13.8% market share. This kind of situation, to win an apple iPhone order, no matter for Intel's brand influence in mobile chip market, or their morale boost are crucial.
I hope Intel don't repeat Atom chip in the technology and market failure.
