Intel selling heavy metal thunder to a lightning fast market

by Steve Blum • , , , , ,

The next industry standard.

After playing with an Atom-powered smart phone at CES this year and hearing execs talk up Android, I saw glimmers of hope that Intel was finally coming to grips with the mobile world. It seems I had it backwards: the mobile world is tightening its grip on Intel’s corporate throat.

Long the dominant player in PC and big server processors, Intel is all but shut out of smart phones and tablets, a billion unit market, and has no presence at all in the machine-to-machine space, which could be five or ten times that size in the next handful of years. Its ARM-based competition is even beginning to creep into the increasingly energy conscious server segment.

Its luck isn’t likely change soon: a microcomputer mindset is hard-coded into Intel’s DNA. In his first quarterly earnings call, rookie CEO Brian Krzanich’s attempt to convince analysts that the company is finally on the right path ended up proving the opposite…

Intel was slow to respond to the ultra-mobile PC trend. The importance of that can be seen in the current market dynamics. The traditional PC market segment is down from our expectations at the beginning of the year while ultra-mobile devices like tablets are up.

Saying a tablet is an ultra-mobile PC is like calling a motorcycle an ultra-mobile car. That’s fine if you’re trying to cram a V–8 onto the frame because that’s the only kind of engine you make. Not so good if you’re trying to out race the competition.