Qualcomm abducts the mobile chip market, Intel enters the tunnel period?
Intel looks a little aggressive in the field of mobile chips, and it is no wonder that if most of the media attribute the early retirement of current CEO Otellini to his sluggishness in the mobile market, then this matter itself has been elevated to a very high position. "We want to be a leader in this field." Chen Rongkun, vice president of Intel's product architecture business unit and general manager of the mobile communications business unit in China, explained their goals. But please note that according to Strategy AnalyTIcs data, Intel ’s share of the smartphone chip market in the first half of the year was 0.2%, while Qualcomm, the biggest “enemy†of the ARM camp, was 48%!
"The new CEO's job is to increase the mobile market share to more than 25%, which is a very difficult thing." Patrick Moorhead, a former AMD executive and industry analyst, said.
But Intel executives are very clear about its "difficulty". Just as Android has subverted Microsoft's License model for free, ARM's licensing model is diversifying the entire industry chain, and OEMs have a great enthusiasm to accelerate integration to achieve differentiation. This is obviously not what Intel's industrial chain can do. PC manufacturers have long been accustomed to installing a "differentiated" shell for a complete set of chip solutions at Intel's pace.
Therefore, in the words of Chen Rongkun, "This will be a marathon." Obviously, the challenge facing Intel cannot be measured solely by technology, "This is a contest between ecological chains."
Life Gate
Otellini was described by the media as a dull "sinner", and the examples cited by them all seemed persuasive. In June 2006, Intel sold the mobile chip business to Marvell for $ 600 million. The reason given was that it could have more resources to deal with AMD. And until the end of October this year, Otellini insisted that the keyboard and other peripherals are essential elements of the tablet. This was interpreted by the media as a lack of accurate judgment of trends.
But in the face of such a fast-growing market, defending achievements means facing death.
Investors are often sensitive, and they caught this signal very easily. In the third quarter just past, Intel ’s revenue of US $ 13.457 billion and net profit of US $ 2.972 billion were far higher than Qualcomm ’s corresponding US $ 4.871 billion and US $ 1.271 billion, while the latter exceeded Intel ’s market value of US $ 105.8 billion Of 96.4 billion US dollars.
What is even more "frustrating" is that more than 70 manufacturers are currently using Qualcomm chips, and more than 500 terminals have been released, and more than 400 terminals are still being designed. On the Intel side, there are seven smartphones and the same few tablets.
Intel is still unable to persuade those first-tier OEMs, even if they are required to migrate part of their business from the ARM camp, they need enough temptation. "We were also very worried at first." Meng Pu, Motorola's senior vice president and president of Greater China, said, "The power consumption problem has been around for a long time. We are not sure whether this problem can be solved. But then we saw Intel's efforts, which gave Gave us great confidence. "
The power consumption problem is the most obvious "life gate" of Intel. ARM has grasped this point. This chip architecture based on a simple instruction set perfectly fits the needs of early smartphones. Intel also bet on the wrong operating system. It missed the best time to enter Android. Instead, it invested resources in Nokia's Meego. Even until Nokia has chosen Microsoft, Intel still claims to "stick to Meego."
These are still technical issues. What Intel really can't change is the ecosystem that the ARM camp looks "impeccable".
Since defeating AMD, PC chip innovation seems to have been kidnapped by cost. A classic example is that until now, the notebook has not been equipped with a GPS chip, which makes us have to enter the starting point location information when looking for the route on the web page.
Intel has no incentive to do this thing that may affect profits, but OEMs are unable to add GPS functionality to Intel ’s established chipset core. This is unthinkable in the ARM camp. In order to survive, mobile phone manufacturers want to concentrate all functions including GPS and Bluetooth into the chip. Their enthusiasm for differentiation pushes back the differences between Qualcomm and other suppliers. Innovation.
At the end of the development, it has become a dozen parts suppliers to fight for the design rights of a smartphone OEM manufacturer, and it is by no means a price war under homogeneous competition. In order to retain Apple, Infineon did everything possible to meet the compatibility problems of abnormal hardware and software. At Apple headquarters, they stationed a dedicated team, and often dispatched a technical team from Germany to the United States overnight to solve temporary problems. The problem. Slightly "slow", other manufacturers will swarm.
This is hard to appear on Intel and Lenovo? The vast majority of the industry chain is in the hands of Intel. OEMs in the PC industry can only wait for CPU updates, and then through inventory control, channel distribution and brand differentiation Going to a price war, the result is that the winner will always be Intel and Microsoft. OEMs are gradually moving away from innovation, which is one of the reasons why Microsoft is releasing Surface. If such a reference design cannot be surpassed, how can the product have a market?
Therefore, even without considering the technical factors, it is difficult for Intel to sell products at a competitive price without hurting high profits after accustomed to a monopoly.
Intel needs more partners, and senior executives including Chen Rongkun and Yang Xu (President of Intel Greater China) are talking about this issue repeatedly. Dr. Wu Jun once summarized Intel's business model as "making money by large investment and mass sales" in the "Top of the Wave", and when a new business such as mobile chips cannot get as many OEMs as PC chips Support, this business model has no foundation.
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