Shrewd Or Desperate?

Intel is adopting a ‘shrewd strategy’ in going for the low-cost smartphone market, says IHS.

Is it really ‘shrewd’ to go for the low-cost market if you can’t get into the high-cost market?

 

Or is it the only place for Intel to go?

 

Intel doesn’t usually choose to go for low-cost markets. The high cost of making its silicon has historically inclined it towards high-cost markets.

But, as IHS says, Intel has a ‘currently minimal share’ in the phone industry and a ‘negligible share of the global smartphone applications processor market.’

So Intel ‘has no place to go but up’ says IHS, generously putting the best possible gloss on things.

Some of these low-cost phones are made by small companies which might be receptive to Intel MDF.

And you don’t need a leading-edge performance processor if you’re going for the low-cost market which saves on the development budget.

So, is the low-cost focus ‘shrewd’ or desperate?

Tags: development budget, edge performance, gloss, Intel, performance processor

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4 Comments

  1. David Manners
    January 17, 2013 09:49

    Well I always thought that electronics was either about doubling functionality for the same price every eighteen months or halving cost per function every eighteen months, Mr C, and assumed that the phone companies opted for the former.

  2. Mr Cynical
    January 17, 2013 09:35

    Mr M, it’s electronics (if you haven’t noticed) most devices halve in price during their life cycle, we have not seen this yet with Apple or Samsung phones so I say roll on Amazon, Nokia and maybe Intel, £529 is far too much to pay for a smartphone, hopefully the cheaper smartphone will keep the leaders “honest”?

  3. David Manners
    January 16, 2013 21:30

    Well if Intel’s low-cost design-ins are at the handset equivalent of BMW, then all well and good, Mr C, but if they’re at companies with names like Lolo, or Zola, or Zorro then we’ll know it’s all a bit bogus and grotty.

  4. Mr Cynical
    January 16, 2013 19:54

    Where would BMW be without the 1 & 3 series?

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