Intel Corporation (NASDAQ:INTC) is planning to bring in new chips focused on medical equipment, automobile entertainment systems and other devices from its core personal computer market, which is declining. Intel along with other tech biggies is working on the concept known as ‘Internet of Things,’ which is a trend to connect almost everything from bathroom scales, to factory robots and skyscraper ventilation systems to the internet.
Such connectivity will enhance the demand for new electronics and software in the coming years.
New chips from Intel coming soon
Ton Steenman, general manager of Intel’s Intelligent Systems Group informed reporters that Intel’s brand new E3800 chips is being used by many electronics manufacturers. Atom E3800 is a lower power mobile processor from the chip maker.
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Talking about the new chip, Steenman said, “It will allow us to reach into a whole new set of applications and billions of devices we have never been able to delve into before.”
According to Steenman, Intel will launch Atom chips this quarter, which will be used to play a vital part in industrial machines, and the capacity to bear high temperatures. Moreover, Intel’s Quark chips that are supposed to be stuffed with more power will be launched in the first quarter of 2014.
No info on pricing
No information was delivered by Steenman about when he thinks the ‘Internet of Things’ concept will start paying off for the company and also he did not reveal anything about the pricing of the chips.
Patrick Moorhead, an analyst at Moor Insights and Strategy, is expecting that the price of Atom chips will be in the range of $20-50 each and the Quark chips will have a price tag around $5 per piece. Comparatively, Intel Corporation (NASDAQ:INTC) has kept the price of its powerful and highly profitable Xeon chips at hundreds or even thousands of dollars each.
Intel Corporation (NASDAQ:INTC) is a dominant chipmaker and was the most popular amongst the PC makers. However, a slow transition from PC to tablet landed the company in a bit of a struggle. At present, the company is struggling to ramp up its chip designs and specifications to support tablets and mobiles to save its 63 percent gross margin by continuing making chips.