Intel Corporation (NASDAQ:INTC)’s efforts to make its presence stronger in the mobile segment might be starting to bear fruit. Samsung devices usually come with Qualcomm and Samsung’s Exynos chips. All the major features of a phone such as the camera quality, video quality, speed, graphics and so on are very much dependent on the chipset of the smartphone. The soon to be launched new Samsung device will reportedly have an Intel chip inside if the news from Korea is to be believed.
Two new Intel chips
Two new 64-bit Atom processors were announced by Intel Corporation (NASDAQ:INTC) at the Mobile World Congress 2014. ‘Merrifield’ is the code name given to the first that comes with two 2.13 Ghz cores. Integrated Sensor Solution (ISS) is a new capability that has been introduced with this processor that not only helps in efficiently managing sensor data, but also assures that even when the battery is low, the device still works efficiently.
‘Moorefield’ is the codename given to the second processor that comes with 2.3Ghz and four cores. This processor is capable of faster memory, and enhanced GPU gets support from this. The mobile industry is dominated by Qualcomm, but it looks like Intel has made the correct moves at the right time.
Rumors are that Samsung is working on a new device that will have Intel Corporation (NASDAQ:INTC) inside it, to be more specific, it will come with the Moorefield chipset. Though this is not the first device to run on the aforesaid chipset. it will be the first smartphone to use it. These chips were designed for small tablet devices.
Intel making sacrifices
This move by Samsung will help attract more attention towards Intel mobile chipsets, but it is likely that some cost must have been incurred by Intel. The average price of a mobile chipset for a premium applications processor is $20 while DDaily has estimated that these would have been offered at a very nominal price of $7 each by Intel. This price is said to be slightly above the cost of manufacturing and the margin for Intel is negligible.
Intel Corporation (NASDAQ:INTC)’s sacrifice of profit margin is considered a strategic move by the company to gain recognition and challenge Qualcomm. Given the market share of Qualcomm and declining market of Intel Corporation (NASDAQ:INTC), this seems a very difficult task even if they get help from Samsung.