Intel Pulling Out From Smartphone Market, And So Losing $10 Billion
Reportedly, Intel invested approximately $10 billion in its mobile unit over the last three years. Now, the company is wasting its $10 billion by shutting down its mobile endeavor. Last week, Intel announced layoffs, and now this is another negative sign coming from this tech giant.
According to the chief executive officer of Intel, Brian Krzanich:
The company needs flexibility to invest in hot segments like Cloud and the Internet of Things (IoT). Intel’s management seems to be suggesting that layoffs and R&D crash programs are the way to achieve flexibility. I couldn’t disagree more.
Three years ago, Intel launched an offensive endeavor to get a piece of the mobile chip market. The company showed willingness to support this program with huge financial resources and technical staff behind its ambitious project.
Fast forward three years and Intel has now announced that it is getting out of smartphone market and also cancelled its Sofia and Broxton chips. Moreover, the first step taken by the current management team was the cancellation of its TV project.
Philip Fisher once said:
Research projects cancellation was a waste of money, but more than this, a waste of brain power.
These brilliant scientists were put on these long term projects only to see those cancelled just after three years, and all the work goes down the drain and scientists are relocated to other projects starting from the scratch.
What do you think of Intel`s decision to close its smartphone department? Let us know in the comments.