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Intel Cuts Atom Chips, Basically Giving Up On Smartphone and Tablet Market (pcworld.com)
Intel, the marquee PC chipmaker, has long struggled to get a foothold in the smartphone market. The company, which was late in joining the mobile platform, is still playing catchup with Qualcomm and MediaTek. And it appears it's finally giving up on this ambition. The company is "immediately canceling" Atom chips, code-named Sofia and Broxton, for mobile devices, reports PCWorld, citing a company's spokesperson. The publication reports:Intel's mobile chip roadmap now has a giant hole after the cancellation of the chips. Intel's existing smartphone and tablet-only chips are aging and due for upgrades, and no major replacements are in sight. Sofia is already shipping, and Broxton was due to ship this year but had been delayed. Intel is also discontinuing its Atom X5 line of tablet chips code-named Cherry Trail, which is being replaced by Pentium and Celeron chips code-named Apollo Lake, aimed more at hybrids than pure tablets. Many PC makers are already choosing Intel's Skylake Core M processors over Cherry Trail for hybrids and PC-like tablets.The announcement comes days after its CEO outlined the company's future vision, and a week after the chipmaker let go 12,000 people.
My first impression is that this does not look like a good day for Microsoft. Is this back to Windows RT? That worked so well last time.
My prediction of Intel becoming IBM is coming true much faster than I expected.
Intel was caught napping by the mobile revolution, and they were late to the party. Thanks to iPhone and Android devices, ARM is the standard for mobile.
Now, that by itself doesn't force out Intel. But ARM is very inexpensive, and available from multiple vendors. Intel's business model is to make chips that you need, that you can only get from Intel, and then charge a very profitable margin on those chips. Intel does not want to compete on price in a commodity market; that's not what they do.
So now Intel was trying to carve out a share of the mobile chip market, and it was competing against a chip design that is available from roughly six different companies. Their desired end game would be for the mobile companies to buy Intel chips, get locked in so they depended on Intel chips, and pay a profitable margin to Intel for those chips. But none of the mobile manufacturers wanted that... why would they? Why not just keep using ARM, which is getting more and more powerful anyway?
Intel basically had to pay companies to use the Atom. A few took Intel up on it, but those devices did not shake up the market at all. Basically a mobile device with an Atom was about as good as a mobile device with an ARM chip.
The only way this could possibly have worked would have been for Atom to be better than ARM, and not just a little better; it had to be so much better that it was a clear slam-dunk win, such an amazing chip that it would be worth the risk of entering into an entangling agreement with Intel (and being on the hook for Intel raising the prices on the chips). I see no evidence that Atom was really better at all than the ARM chips, let alone that much better.
So Intel is now going to stop paying companies to build with Atom, and is giving up on that whole market.
P.S. I would love a small form-factor PC running a 64-bit ARM chip with completely passive cooling and running Linux. I'd buy that. I might even buy it if it was called a "ChromeBox" and came with Chrome OS pre-installed, but it would be an easier sell if I could get drivers for plain Linux for all the hardware.
x86 looks pretty safe on the desktop for now, but give it a few years and we'll see if that's still true.
lf(1): it's like ls(1) but sorts filenames by extension, tersely
When looking at the technical merits of Atom, it was actually quite competitive with the latest and greatest offerings from the ARM camp (with the exception of Apple's offerings, but Apple has advantages others don't).
In this case, the bullet to the head was, ironically, software compatibility. To this day, you can't just put an x86 chip in a phone/tablet and expect *everything* to work right that would've if running an ARM chip. Not to mention Intel charges way too damn much for those things and doesn't have anywhere close to a decent connectivity (WIFI/LTE/GSM) pairing solution.
Their SoC design was also shit. Codecs and DSP algorithms that others have baked in for generations are still missing from the latest and greatest Atom.