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daleste
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Focus
daleste   1/21/2014 10:59:36 PM
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It looks like Intel is working to focus their strategy.  I guess the shrinking PC market is causing them to reevaluate their future.

junko.yoshida
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ill-fated media business
junko.yoshida   1/22/2014 7:13:04 AM
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This was expected. No matterhow spectaculr the hardware platform might be, for Intel to succeed with this business, it was absolutely necessary for Intel to get deals from media companies.

The original goal for Intel was to generate demand for web-delievered video on TV, allowing consumers to bypass cable companies and their "bundled services." Being able to watch high-qualirty programs a la carte on the Web was deemed as the ultimate next-generation IPTV.

Intel started the division in 2011, hiring digital executive Erik Huggers from the BBC to lead the team.

But truth to be told, for the chip giant to get into the media business was ill-fated from the very beginning, in my opinion.

Meanwhile, TV companies' effort to bring Web video content to TVs continue as seen in LG's purchase of WebOS:

http://www.eetimes.com/document.asp?doc_id=1320576

 

Curmudguy
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Re: ill-fated media business
Curmudguy   1/22/2014 11:03:21 AM
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This is exasperating....XSCALE, WIMAX, MEEGO...now this.....going for new fangled technologies with halfbaked "wait and see" attitude. The only serious support Intel has shown is for it's crown jewels....the X86 based processors.  X86 IS the comfort zone and unfortunately, no one wants to go the way Andy Grove in the early 70's..... when Intel let go of DRAM and concentrated on processors.

Trying to go into foundry services will also be flawed.  To compete with TSMC in cost and development will just not do.  TSMC is just too flexible in either cost and development that  Intel will find itself hard to catch up or match.  Besides, TSMC IS TAIWAN...it will never let go w/o a fight.

 

KB3001
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Re: ill-fated media business
KB3001   1/22/2014 11:44:53 AM
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What is the alternative @Curmudguy?

Curmudguy
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Re: ill-fated media business
Curmudguy   1/23/2014 7:35:44 AM
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@KB3001...Wow...thats a tough question....

1) Go into building ARM processors again.  One reason why XSCALE failed was it was a solution before it's time.  NOW, the ecosystem exist that requires better ARM processors .  Intel can use thier superior FAB process to compete against other FABS.  Of course, the price would not be similar to X86 profit margins but at least they should stay afloat.  Atom could still be a contender on high end tablets....

2) Forge ahead with mastering 3D IC technology specific for mobile based devices.  Squeezing more IC's to conserve board real estate could make them attractive to phone and tablet manufacturers.  Could also buy them more time to delay Moore's law.

3) A difficult one is to proceed on offloading most of the Intel devices from in-house assembly to subcons.  Assembly subcons are so flexible and resillient to change and customer market requirements.  A skill that Intel cannot take up immediately...

3) Forge ahead with developing technology beyond silicon that's limited by Moore's law.

but honestly guys...I'm just a humble engineer watching in the sidelines.

 

KB3001
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Re: ill-fated media business
KB3001   1/23/2014 7:51:10 AM
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@Curmudguy, thanks for the detailed answer. I agree with most of it by the way. They might also get into services a la IBM.

rick merritt
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Re: ill-fated media business
rick merritt   1/22/2014 11:53:29 AM
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@Curmudgeon Guy: I've always admited how for as big ads it is, Intel is not afraid to try new things, push them hard and drop them quickly if they fail. That's more like a startup. They get an A for effort in my book.

That said I agree with Junko, a media play was far left field for them.

A foundry busienss, however, is a smarter move. They are sitting on a lot of capacity and a rapidly maturing market for their current products. Fill the fabs!

 

 

Curmudguy
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Re: ill-fated media business
Curmudguy   1/23/2014 7:56:55 AM
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@Rick "push them hard and drop them quickly if they fail"  I think you read the story of how XSCALE nearly made it with Apple Iphone.

http://www.theatlantic.com/technology/archive/2013/05/paul-otellinis-intel-can-the-company-that-built-the-future-survive-it/275825/

Intel did push hard for a long time....but according Paul O "At the end of the day, there was a chip that they(Apple) were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost."  And the rest is history....

As for the FAB situation....it is a smart move I will admit.  But now it's not just the superiority of ones technology but who has the deeper pocket and cheaper price per dice / wafer.  Besides, TSMC has good relationships with it's customers....the question is.....can Intel provide a "value proposition" to these same customers that they won't hesitate to move to Intel FABS?

 

zewde yeraswork
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Re: ill-fated media business
zewde yeraswork   1/23/2014 1:38:25 PM
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No doubt, having these fabs is an important advantage. How they leverage them is another matter entirely. There is opportunity everywhere, iin everything Intel is trying. They may be able to recoveer from the blunder involving Apple over the next couple fo years but that won't happen without leveraging the foundries and other capacities.

zewde yeraswork
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Re: ill-fated media business
zewde yeraswork   1/23/2014 1:39:32 PM
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No doubt, having these fabs is an important advantage. How they leverage them is another matter entirely. There is opportunity everywhere, iin everything Intel is trying. They may be able to recoveer from the blunder involving Apple over the next couple fo years but that won't happen without leveraging the foundries and other capacities.

zewde yeraswork
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Re: ill-fated media business
zewde yeraswork   1/23/2014 1:40:10 PM
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No doubt, having these fabs is an important advantage. How they leverage them is another matter entirely. There is opportunity everywhere, iin everything Intel is trying. They may be able to recoveer from the blunder involving Apple over the next couple fo years but that won't happen without leveraging the foundries and other capacities.

zewde yeraswork
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Blogger
Re: ill-fated media business
zewde yeraswork   1/23/2014 1:41:15 PM
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No doubt, having these fabs is an important advantage. How they leverage them is another matter entirely. There is opportunity everywhere, iin everything Intel is trying. They may be able to recoveer from the blunder involving Apple over the next couple fo years but that won't happen without leveraging the foundries and other capacities.

tb100
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CEO
Re: ill-fated media business
tb100   1/22/2014 12:50:07 PM
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Intel failed with WiMAX and MEEGO, but I think you'd agree that PCIe and WiFi did amazingly well. 

People complain about the failures but take the successes for granted. But I remember back when Intel was making WiFi a requirement for portables in order to get the Intel branding, and everyone thought they were really stretching things.

Also, aren't they getting some big customers for their foundry business? Considering the cost of foundries, they may not be able to build new ones without some sharing of costs.

bjul
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Coherent Strategy
bjul   1/22/2014 10:44:26 AM
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Its not new that the PC market is shrinking and will continue to do so until it stabilizes. Intel needs a coherent strategy to counter the trend. So far there has been none. It has dabbled and spend billions in communication, TV, wireless spaces with nothing to show. The only saving grace has been the companies lead in manufacturing technology that is preventing a steeper decline. Intel has continued to milk its monopoly in the PC market for a long time, that market is declining. Its entry into other markets have been disastrous. I have held Intel stock for years and must say, its not gone anywhere. The last few Intel CEOs (after the amazing Andy Grove) were disastrous. I dont beleive the current management can effect the change at Intel to take on Qualcomm, ARM etc. The Intel board shares the blame for making these appointments. They have made one too many mistakes and ought to be fired too along with the 5% who are losing their jobs !

zewde yeraswork
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Re: Coherent Strategy
zewde yeraswork   1/22/2014 11:01:06 AM
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I don't know how much of this is a reflection of hard times ahead and currently at Intel, versus a simple and predictable decision based on a broader trend. More and more, we're seeing attempts to provide video content outside of traditional television and it seems that Jon Peddie at least is very enthusiastic about this particular offering. Intel is certainly going to face challenges, but is it really moving out of this space because of that or because it makes more sense for Verizon to make this move than it does Intel?

KB3001
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Re: Coherent Strategy
KB3001   1/22/2014 11:46:59 AM
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We need to know the value of the deal to answer this question. I suspect it's more the former than the latter i.e. Intel divesting to focus more on future battles on its core business.

JimMcGregor
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Re: Coherent Strategy
JimMcGregor   1/22/2014 2:26:38 PM
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You need to remember that this is not just about a consumer device and content, it was also about building the infrastructure to support it. I would venture to say that the data center assests and supporting software were a key reason for the acquisition by Verizon.


On the Intel front, however, the cost cutting continues.

Bert22306
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CEO
I'm almost relieved
Bert22306   1/22/2014 4:53:56 PM
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It really bothers me to see unhealthy collusion, e.g. hardware vendors getting in bed with content owners or even service providers. In the work I do, if we were caught doing such shenanigans, we'd be facing prison time. There's no reason on earth for a hardware vendor such as Intel to have to beg content owners for anything.

Verizon ought to get into distributing TV using Internet Protocols, although I have to wonder what all the fuss is about, since I already use Verizon Broadband to watch practically all of my TV programs. I'll assume these new schemes involve primarily the delivery and charging for MVPD by-subscription-only tiers, using IP.

Since the TV networks, i.e. the content OWNERS, are so paranoid about their by-subscription stuff going out over IP, one wonders why they don't bypass these middlemen and deliver the stuff from their own web portals. Honestly guys, how slow can you be to miss the fact that people want to consume their TV using Internet appliances? It's high time that the TV networks get into the act, instead of desperately attempting to forestall the inevitable. TV over IP is entirely feasible, both ad-supported and by subscription.



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