The Death of Intel

What would you think about a company in 1960 that decided to withdraw from the colour television market and focus on black & white TVs? Or a software company in 1997 that decided that this internet thing really wasn’t worth pursuing?

Well, I think we’ll look back at Intel’s remarkable decision today in the same light. They have announced the sale of its communications chip business to Marvell Technology Group for a paltry $600 million, intending to focus on “chips for personal computers and servers amid stiffer competition”. The communications chip business supplies BlackBerries, Treos and Motorola’s Q Phone, among others.

It’s certainly true to say that Intel haven’t managed to get a lot of traction in the phone market, despite investing nearly $10 billion, to date. But giving up is more short sighted than Mr McGoo. The future of personal computing IS about the mobile phone and the only question is when, not if, the phone takes over as the most important device to access the digital world.

This is like betting that George W Bush won’t win the 2004 election – in 2006.

[tags] intel [/tags]

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