Intel out of smartphone business?

Intel To Reduce Investment in ‘SoFIA’ Chip Line, Says Wells Fargo

By Tiernan Ray

Wells Fargo’s David Wong this afternoon issued a brief note to clients after holding a meeting with Intel’s (INTC) CFO, Stacy Smith, and a “small group” of other people.

Wong notes that the company is informing employees of some details of the restructuring announced a week ago, particularly with respect to smartphone and tablet chips:

Today, 4/27 we attended a small group lunch with Intel’s CFO. Intel appears to be moving very rapidly to inform its employees of their status with regard to the restructuring plan. The largest portion of the cost cuts will be to improve efficiency and effectiveness across the company. Some specific projects will be impacted, primarily in the Client Computing Group (CCG). Within CCG Intel plans on scaling back its investment in tablet and smartphone SoCs (system-on- chip) – we assume this refers to a reduction in investment in the SoFIA product line.

Comment! It's anonymous!

4 replies (most recent on top)

This is the classic disruption gameplan ala Clayton Christensen. 1) The giant owner of the market stops competing on those pesky upstarts (ARM) that are making headway in the lowest margin areas of the business. 2) The next thing the giant realizes is that their product has improved enough where it's starting to compete in it's mainline businesses (ie PC). 3) Finally the upstart begins to take share away from the cash cow of the giant (servers) - at this point it's all over but the crying and you should have left Intel long ago.

China is owning the smartphone market. The Chinese government will not let Intel have any market share due to national security concerns.

Jump the ship folks, even if you're not in line. This company is going down. dump their stocks before too late

out of phone biz??

never in!

Thread regarding Intel Corp. layoffs

Intel out of smartphone business?

4 replies (most recent on top)

Post a reply