Intel Is Losing the Mobile War to Competing Chip Makers: 10 Reasons Why

By Don Reisinger  |  Posted 2013-05-07 Print this article Print

5. The business model is different

Intel's business model is one that doesn’t line up with mobile products. The company typically takes years to research and develop new chip architectures, and then develops its processors itself, causing it to charge more to vendors. In the mobile space, speed and price-savings is everything. But Intel hasn’t quite accepted that view.

6. It picked the wrong horse out of the gate

Right out of the gate, when touch-screen smartphones and tablets started taking off, Intel was still heavily focused on netbooks, thinking that that technology could hang on and eventually win the day. The company was wrong. And now it’s paying the price for being wrong.

7. Is it too focused on Ultrabooks?

After Intel made the mistake of following notebooks and netbooks, the company is now focusing much of its effort on Ultrabooks. Intel reasons that ultrabooks will be the ideal replacement for tablets and lightweight notebooks, and should be something incorporated into any product plan. But whether Ultrabooks will actually take off remains to be seen.

8. The margins are tight

One of Intel's biggest struggles in the mobile space is that it's profit margins are a little too tight for its business model. Chip-production companies in the mobile market need to be lean and agile in order to save cash on processors. And historically, Intel has not been as strong in that regard as it could have been.

9. Big companies move slowly

In addition to being lean and agile, Intel needs to act more quickly in the mobile space. Device makers are launching new products every year, and companies like ARM, Qualcomm, and others, are able to meet their demand for something new and exciting. Intel, meanwhile, has been slow to roll out a roadmap and is just now trying to make a move for the mobile chip market. It’s a huge issue.

10. Samsung is a huge concern

Samsung might just be one of Intel's biggest concerns in the mobile space. Samsung is selling more smartphones than any other vendor and is even topping the feature phone market. What’s worse for Intel is that Samsung has its own chip-production apparatus in place, making relying on Intel unnecessary. That leaves a massive customer out of Intel’s mix.

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