Anybody familiar amongst the PC infinite knows that ASUS is i of the most trusted brands for PC motherboards, monitors, graphics cards, together with notebook/desktop computers. Its products are competitive, reliable, together with perform well. It's a mention that's trusted past times many and, equally a result, it seems that equally Intel continues its force into ultra-mobility, ASUS volition move a prominent histrion together with maybe a key driver to potential success for Intel inwards this market.
The ASUS ZenFone is a bully get-go step
At CES, ASUS announced a line of smartphones known equally the ZenFone lineup. These are incredibly solid phones that -- for the bespeak prices -- should create quite good inwards markets where LTE is non currently widespread (these phones job Intel's XMM 6360 modem, thence 3G only). They are powered past times Intel's Z2500 line of piece of work solid unit of measurement of Atom SoCs together with compared to its peers inwards the $99-$199 unsubsidized cost range, the functioning is at to the lowest degree equally proficient equally what competitors are shipping, if non better.
According to Digitimes, ASUS plans to sell close v i M m of these ZenFone products during 2014, making ASUS Intel's largest smartphone processor customer. The destination for 2015 is 10 i M m units, or close double 2014 levels. From a revenue standpoint, it is unlikely that Intel is generating much; inwards fact, it wouldn't move a surprise if these processors required contra-revenue to offset a high neb of materials relative to other inexpensive smartphone combat solutions. That said, this gets Intel inwards the door.
Is this a potentially fruitful multiyear partnership?
At Mobile World Congress, Intel announced a multiyear, multidevice partnership amongst ASUS. Intel mobile executive, Hermann Eul, indicated that ASUS together with Lenovo had both signed on for such partnerships together with that these partnerships would bridge phones together with tablets utilizing Intel's entire portfolio of products.
Intel's Tangier SoC, purpose of the Merrifield platform, is shown on the right. Source: Intel.
Now, piece ASUS is no Samsung, the partnership hither couldn't move to a greater extent than obvious. Intel needs to interruption into the mobile marketplace position where it faces Qualcomm , an extremely powerful incumbent. It also faces the fact that Apple, which owns 15% of the smartphone market, designs its ain chipsand also that Samsung -- which designs its ain chips together with builds chips for the likes of Qualcomm equally a foundry -- owns 30% of the market. This leaves simply 55% for the balance of the earth (the publish is truly smaller equally Huawei designs its ain silicon, too).
Intel's undertaking is to laid companies similar ASUS strong
Intel isn't going to win this marketplace position past times winning over Apple or Samsung, thence what it does demand to create is to construct upward roughly of these smaller friends from the PC marketplace position to move formidable players. If the likes of ASUS, Lenovo, together with fifty-fifty Acer (which truly dumped Intel's chips inwards phones for 2014, but could move dorsum inwards 2015 when Intel's production portfolio improves) could move made into formidable Samsung alternatives, together with thence Intel could withal win that way.
How does Intel create this? Well, ASUS (among others similar ASUS) convey to the tabular array solid engineering prowess together with established consumer brands. Intel volition move able to convey solid silicon equally good equally a major international laid to the table, helping these smaller players to a greater extent than effectively grapple Samsung together with Apple. This isn't something that'll move slowly given the electrical current nation of the market, but Intel has invested equally good much inwards mobile to non line every lever it tin to gain share.
Foolish bottom line
With the ZenFone, ASUS together with Intel showed that they could seat together a truly compelling low-end band for cost-conscious markets. However, this partnership is probable to extend much farther together with it wouldn't move a surprise to come across roughly higher-end phones transportation inwards the U.S. built past times ASUS this year. ASUS isn't a Samsung, but there's no key argue why ASUS can't accept a large slice of Samsung's smartphone pie amongst Intel backing it -- assuming, of course, that Intel gets its mobile-chip story straightened out.
Are smartphones erstwhile news?
If you lot idea the iPod, the iPhone, together with the iPad were amazing, simply human face until you lot come across this. One hundred of Apple's superlative engineers are busy edifice i inwards a hush-hush lab. And an ABI Research study predicts 485 i M m of them could move sold over the adjacent decade. But you lot tin invest inwards it correct now... for simply a fraction of the cost of AAPL stock.
Source: http://www.fool.com/investing/general/2014/04/23/why-asus-may-be-intels-key-smartphone-partner.aspx
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