Intel Estimates 40 million Units in Tablet Chip Shipments in 2014

24 Jun

Intel has not operated well in the mobile market over the recent years. Since 2013, the company has gradually placed its focus in Shenzhen and worked with minor brand vendors, with an aim of duplicating its success in Taiwan’s personal-computer sector in the tablet-computer market.

It seems that the strategy works. Intel’s tablet chip shipments touched 5 million units during the first quarter of this year and its annual target has been raised to 40 million units.

The advancement can be seen in some figures. This year, OEM and ODM producers have rolled out 130 tablet-computer models configured with Intel’s chips, and the devices have been sold in 150 countries worldwide with the price tags ranging from US$99 to US$599. Fifty of the 130 models are available in China’s market.

A representative in charge of Intel’s mobile business described the current situation as “having found the feeling.” In other words, Intel has found an effective way in the mobile market to realize large chip shipments and successfully earn a certain share in the market.

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Intel’s improvement comes from the efforts it made in the supply chain, including an effective turn-key project, which allows shipments within a month, as well as product differentiation in scene, software and hardware.

It also cooperates with component and accessory suppliers, software vendors, game makers and integrated circuit suppliers in order to provide more complete solutions for end vendors. In the meantime, Intel gives support in technology and quality management to help save the cost of its clients.

At the downstream, Intel has accumulated considerable traditional PC channels with more than 10,000 outlets across over 800 cities globally. On e-commerce platforms, it has teamed up with Jingdong Mall and Tmall. Intel launched several promotions on the e-commerce platforms and in its physical channels. At one point, six Intel based tablet models were among the top-ten best sellers in the “tablet computer” category on Tmall.

For Intel, it can finally feel relieved because its cooperation with minor brand vendors has been efficient. It tried to roll out high-end mobile phone chips for brands such as Lenovo, ZTE and Motorola, but the strategy was not successful.

However, the downside of working with minor brand vendors is that Intel is not really recognizable among the consumers of these brands. An Intel employee said that 80 percent of tablet computers adopting Intel’s chips were sold in overseas markets and many of them are unbranded low-end tablet devices. In the low end markets, consumers care more about the prices tags rather than the brand of chips.

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