Will Intel withdraw from the wearable device market?

TechCrunch, a US technology blog, quoted sources as saying that Intel is about to shrink its wearables business -- Intel has laid off employees at its smart device companies and may even disband them.

In response, Intel responded on the 19th, denying the retreat. Intel’s statement is as follows:

"Intel will never leave the wearables business. In fact, we have several products under development, and we are very excited about it, just like the wearable technology we introduced before, such as the TAG Heuer smart watch and the recent Oakley smart glasses."

Intel entered the wearable years

In September 2013, Intel formed the “New Group” (NDG). At the end of the year, its senior vice president Tang Kerui revealed that they were entering the market for wearable devices.

At the 2014 CES conference, Intel released Edison, a wearable device chip based on Quark technology. The BioSport headset launched in the same year was the product of the collaboration between NDG and SMS Audio.

In 2014, Intel acquired Basis, a company that is not well known but has produced many truly outstanding smart watches. Subsequently, Intel merged the company into its NDG (the New Devices Group), hoping it would help the newly formed NDG gain a foothold in the fast-growing wearable device market.

Unfortunately, it is counterproductive. After the acquisition of Basis, despite the launch of a number of related products, but the market reaction was flat, but also a big scorpion - Basis Peak, a smart watch under Basis, had an overheating problem. Although according to their statistics, this issue may only affect 0.2% of users. Moreover, Intel did not try to solve this problem, but simply stopped the sales of this product. Intel is even preparing to shut down Basis Peak's software support (including cloud storage services) by the end of the year.

Nowadays, Intel has notified many employees of this incident. Many people will lose their jobs before the end of the year. It is not yet certain what it is, but it is certain that NDG will experience a major layoff because there is no rebuttal to the news of layoffs in Intel’s statement. In addition to layoffs, many NDG jobs will never end, such as the unpublished smart health watch Basis Ruby.

The layoffs are true, but they are not going to withdraw!

After the news was exposed, some people in the industry thought that this was a signal that Intel had withdrawn from the wearable device market. However, these people may have overlooked some facts.

Invoking the words of Ai Faner: For example, at the Intel Developer Conference this year, the Alloy Headlight and Merged Reality technology, which was launched as the highlight of the show, showed the king of the PC chip, and is shifting its business focus to Trends in new areas such as wearables.

Another example is Intel's investment in CubeWroks, a sports technology chip company whose core competitiveness is only 1 square centimeter. It is said that Intel is considering the development of this chip for implantable subcutaneous sensors.

Intel's performance on wearables is not ideal, but the company seems to have no intention of stopping. Even with layoffs, Intel still has frequent actions in the wearable device market, investing, developing, and cooperating. There is not much, and there is no sign of withdrawal.

In addition, from the recent cross-border cooperation with auto manufacturers, Intel is also constantly deploying in the field of autopilot.

Although wearable devices and autonomous driving are both mature markets, Intel has clearly learned the lesson in the smart phone chip market. After all, there are still opportunities for trial and error, if the market matures, then wait, wait They may be the same fate as in the mobile phone chip market.

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