How Does Intel Manage to Return to the Mobile Chip Market Step by Step?

Intel, which has been back in the mobile chip market for one and a half years, needs to seize the time to prove that it can stand in this highly competitive market.

Intel still uses the old method of "Intel inside" brand promotion. On July 10, 2013, Intel joined hands with ZTE, which has ranked among the top five in the global smartphone market by sales, and released a mid-range smartphone "geek" in Beijing, with an obvious Intel logo on the back of the phone.

It is understood that this mobile phone is equipped with Android 4.2 operating system, 2.0GHz dual core intel mobile processor, 5.0-inch HD resolution large screen, 8-megapixel camera and 2300 Ma battery. It supports WCDMA network. The price of the basic model is 1888 yuan, while the price of the model supporting wireless charging function is 2288 yuan.

This is another new smartphone in Intel's smartphone camp and the second smartphone in cooperation between ZTE and Intel. In the second half of 2012, ZTE released its first smart phone grand X in based on Intel chip to the European market, which was recognized by the local market and became the best-selling annual smart phone in Austria and other countries.

"Cooperation with ZTE is a good start for Intel to occupy a place in the mobile chip market." Yang Xu, global vice president and President of China of Intel, admitted that Intel's return to the mobile chip market really needs the support of more mainstream mobile phone manufacturers and large-scale sales to help Intel be self-sufficient in this market, but this is a gradual process.

Although it is a well deserved leader in the PC market, Intel is only a new entrant in the smartphone chip market. Intel, which has returned to the field of mobile chips, has entered a critical period and urgently needs to be recognized and supported by more mainstream mobile phone manufacturers, so as to obtain real "large-scale" sales.

After the return

If Intel's business in the field of mobile chips had never been interrupted, its position in the smartphone chip market might be much stronger today. Unfortunately, Intel has been interrupted in this field for six years.

Seven years ago, in June 2006, Intel sold its Xscale mobile phone chip division, which had been built for ten years but had a huge loss, to Marvell at a price of $600 million, and has since faded out of the mobile chip market.

However, Intel did not expect that after it withdrew from the field of mobile chips, the global mobile phone market has undergone earth shaking changes. Smart phones have sprung up rapidly and gradually replaced functional phones. This change has benefited mobile phone manufacturers and chip manufacturers, especially Qualcomm, the overlord in the field of smart phone chips.

Intel, which has accumulated in the field of mobile chips for many years, obviously can't sit down. At the beginning of 2012, six years after exiting the mobile chip market, Intel decided to return to this market, launched the mobile processor for smart phones, and announced the list of the first batch of partners using Intel chips to produce smart phones.

However, with this advance, Intel, which missed the good opportunity, suddenly became a recruit in the smart phone market. Although its R & D strength is strong, it is not easy to re accumulate resources and become a strong competitor in this market.

It is understood that since April 2012, Intel has cooperated with Indian operator lava to launch the first smart phone using Intel chip, Intel has successively launched several models in cooperation with many foreign operators such as orange, as well as manufacturers such as Lenovo, Motorola and ZTE.

According to he Shiyou, executive vice president of ZTE, ZTE's first generation smartphone product grand X in cooperation with Intel last year has been widely recognized in the European market. At present, it has sold about 200000 units, and the newly released geek will take the lead in listing in China, and its sales will at least double.

Although Intel, which has returned to the mobile chip market, has received some "strong support" in this year and a half, it has had a fault in this field after all. It is by no means easy to attract more partners and obtain consumer recognition.

"This is a marathon, not a 100 meter dash." Yang Xu was very cautious when evaluating Intel's mobile chip business. He believed that although the sales of "Intel Core" smartphone products will not increase rapidly in the short term, Intel's technical ability in the computing field will certainly be recognized by the market and supported by more partners in the future.

How to base

For any participant in the global smartphone market, the last two or three years are a crucial period, especially Intel, as a latecomer. He Shiyou believes that the rapid changes in technology and market demand may be an opportunity for Intel.

"The smart phone market provides mobile phone manufacturers and chip manufacturers involved with a 'variable' opportunity, with a time window of about three years." he Shiyou believes that the cooperation with Intel will help enhance ZTE's brand image in the medium and high-end market; At the same time, Intel's cooperation with ZTE at the beginning of its return to the mobile chip market will also enhance its brand awareness in the field of smart phones.

Judging from the current smart phone chip market pattern, Qualcomm has long occupied the vast majority of the market share. Samsung, MediaTek and other enterprises also share profits in this market, while more chip manufacturers have relatively narrow space.

According to the latest report of iSuppli, a market research institution, Qualcomm and Samsung have accounted for more than half of the global mobile chip market in the past 2012. Correspondingly, the total share of the other eight chip manufacturers in the top ten, including Intel, is only 34%, which can be seen from the intensity of competition.

For Intel, which has returned to the mobile chip market for one and a half years, the most urgent thing is to seize the time to be self-sufficient and obtain more market share.

"In the PC era, almost everyone knows the 'Intel Inside' logo. After returning to the mobile chip market, Intel still has the opportunity, and 'Intel Inside' will be popular on mobile terminals in the future.". He Shiyou said.

It is generally believed in the industry that Intel must make its smartphone products recognized by more consumers if it wants to break through the siege and return smoothly. However, from the current market feedback, the smartphones previously cooperated with Lenovo, Motorola and other manufacturers by Intel entered the market with a high profile, but they soon became "controversial" products in the market, and the sales situation was not ideal.

In the view of the industry, if Intel wants to speed up its pace in the mobile chip market, it must have enough shipments. In addition to the support of mainstream mobile phone manufacturers and operators, a series of problems such as technology integration ability, capacity and performance stability must stand the test of the market.

"What Intel needs most in the field of mobile chips is to reduce power consumption and cost while maintaining performance advantages and simplify the complex architecture. After Intel's traditional computing technology enters the mobile field, consumers will have a better experience." Yang Xu revealed that Intel will release a new architecture for smart phones and tablets from the end of this year to the beginning of next year, Its performance will be further greatly improved and its power consumption will be greatly reduced.

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