Intel walks away from TV business

Intel walks away from TV business

Summary: After failing to gain foothold in market, chipmaker moving resources to focus on tablet computers, smartphones and ultrabooks instead, according to report.

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Intel is shifting its priorities away from getting its chips into television sets after failing to make headway in the market, choosing instead to focus its energies and resources on "corporate priorities" such as tablets, smartphones and its new category of laptops called ultrabooks.

Bloomberg reported Wednesday that the world's largest chipmaker had failed to penetrate the TV market and, while it will continue to supply processors to TV set-top box makers, it will not be actively pushing to get its chips into televisions anymore.

Claudine Mangano, an Intel spokeswoman, told Bloomberg that the company will be moving its engineers in its Digital Home Group to focus more on tablet devices, smartphones and the ultrabook laptops it is promoting. The company had announced in August that it was sinking US$300 million for its Ultrabook Fund to encourage hardware and software makers to work on the platform.

"This is a business decision where we're taking those resources and applying them to corporate priorities," she stated.

The report also noted that by walking away from the TV business, Intel is shunning a market earmarked by CEO Paul Otellini to help alleviate the company's reliance on personal computers. The chipmaker had won set-top box orders from Comcast, the largest U.S. cable company, and some European TV service providers as well as supplied chips for Google TV devices, for which Intel was a primary partner.

Cody Acree, an analyst at Williams Financial Group, told Bloomberg that the chip giant has been unable to provide a chip that offered significantly different performance from rival offerings and failed to convince TV makers such as Samsung Electronics and Sony that they needed its chips.

Topics: Hardware, Mobility, Processors, Tablets

Kevin Kwang

About Kevin Kwang

A Singapore-based freelance IT writer, Kevin made the move from custom publishing focusing on travel and lifestyle to the ever-changing, jargon-filled world of IT and biz tech reporting, and considered this somewhat a leap of faith. Since then, he has covered a myriad of beats including security, mobile communications, and cloud computing.

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  • it's TIME ... "TV" will evolve ... old money can not stop the progress of IPTV forever ... Intel / Google has played extremely nice thus far and are allowing "old man TV" to die with dignity. But we all KNOW the capability has been here for some time and will be the FUTURE. No longer is the "broadcast company" needed ... WE WENT DIGITAL ... by LAW ... the next generation doesn't care for your business model of old; controlling what is "aired" and "received" ... RECEIVE THAT ... the YOUTH will eliminate the NEED for your existence ... with their "TVs of Tomorrow" ... To Intel - Sponsor Tomorrow as you Boast ... You can do it now :0
    bradlycouch