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Intel's Changing World

Posted By Administration, Friday, June 20, 2014
Originally posted on 4/15/2013

This weekend, the New York Times profiled ASAP Corporate Member Intel examining the chip and semiconductor giant's plight as it faces an inevitable decline in its PC chip revenues over the next few years.

The piece talks about the efforts of longtime Intel partner ASAP Global Member Microsoft to diversify its chip partner base, Intel's recent collaboration with Hollywood players around a television set-top box and subscription service, and its less-publicized partnerships with wireless companies outside of North America on chips for smartphones and tablets.

On one hand, Intel will be challenged to compete in the new consumer environment that de-emphasizes the PC, in large part because smartphones and tablets require lower-cost lower-margin chips—not Intel's sweet spot. However, as ASAP Toronto chapter president Phil Hogg, CA-AM, vice president of strategic alliances for Moneris Solutions, noted in his 2013 ASAP Global Alliance Summit presentation, the company has already taken measures to cope with this reality with its spinoff organization Celeron. Moreover, the world of cloud and mobile is still early in its evolution. Intel still has time to insert itself into these markets while the dust is still settling and establish a partner ecosystem that can help it quickly develop products that meet the needs of customers while defraying the costs of getting market traction in this lower-revenue segment.

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