Intel's success in China hinges on budget phones and tablets.



"China is the number one market with connected products."
That was how Intel's Senior Vice President Kirk Skaugen kicked off his keynote at IDF in Shenzhen, citing China's staggering 30 percent share of worldwide connected-device purchases in 2014. The country gobbled up 40 percent of the 46 million Intel-powered tablets shipped globally. Not bad, but 46 million is hardly anything compared to the 420.7 million smartphones shipped in China alone in the same year -- only a tiny percentage of which packed an Intel chip. Most others relied on Qualcomm, MediaTek and Samsung. Intel's smartphone market share is so small that it never dared to share the stats; it could be as low as 2.81 percent in the Android space, according to benchmark specialist AnTuTu.

This isn't something that Intel can fix overnight, but with the launch of its Atom x3 "SoFIA" chips, it's hoping to narrow the gap this year. Atom x3 is actually Intel's first family of chips with an integrated modem, which offers the advantage of improved power efficiency as well as reduced space and costs. It's still going to be a hard sell, though, especially given that the LTE flavor of Atom x3 won't ship until the second half of this year. But at least Intel's found a cunning strategy to stay relevant: partnering with Chinese chip designers Rockchip and Spreadtrum to leverage their connections with local device manufacturers. In other words, these two companies get to offer Intel-powered designs to their clients.
A selection of budget tablets in a Hong Kong mall, many of which are powered by Intel's Bay Trail processor.

We won't judge you if you're not familiar with Rockchip and Spreadtrum. Both firms only dabble in the lowest-end smartphone, tablet and TV stick markets. The places that are packed with KIRFs and brands you've never heard of. On the Chinese retail site Taobao, we managed to find a Rockchip-powered 9.7-inch Android tablet that cost just 390 yuan, or about $63.
There's plenty of reason to worry that these cheap devices will tarnish Intel's brand.
Now, this is obviously a case of "you get what you pay for." Ugly or copycat designs, rough seams, scratched metal parts, laggy software, you name it. Not to mention the lack of Google services. Nicole Scott from Mobile Geeks said what many of us were thinking in her post-IDF piece: "I have never seen a Rockchip product that I thought was of good quality." There's plenty of reason to worry that these cheap devices will tarnish Intel's brand.
An Intel Atom x3-powered Samsung Galaxy S5 clone.

Skaugen isn't terribly concerned, however. "In the last year, we've seen a dramatic improvement in the overall quality in craftsmanship that's come out of Shenzhen," the exec defended. He also points out how the likes of General Motors and Volkswagen have prospered by engaging in China early with local partners.
"When you're here early and you're helping," he said, "I think you would rather be in the position that those companies are in. And quality does get better over time, but you do have to transfer some of your knowledge on how to build even higher-quality products."
In this case, "transfer" is just a pretty way of saying "selling reference designs." Intel does so through its turnkey program, in which vendors can either buy some parts from a list of recommended suppliers, or simply slap their own brand onto Intel's complete reference devices. Going the latter route can get them to market in just six to eight weeks. Such speed is critical in the super competitive entry-level market. According to Intel, last year 30 ODMs made 350 devices based on its reference designs, and those shipped to 50 countries.
Bluebank president Tao He shows off his $50 5-inch smartphone powered by Intel's Atom x3.

"Intel's turnkey solution has greatly lowered the entry barrier."
Rockchip, Spreadtrum, MediaTek and Qualcomm also have their own turnkey solutions, with MediaTek pretty much pioneering this business model in its copycat feature phone days. Intel's clear advantage over the competition lies within its x86-64 architecture (so both Android and full-on Windows are compatible), RealSense depth camera technology and wireless power know-how. The chip giant also claims to offer higher reliability, with customers seeing a 20 percent lower return rate with devices based on its reference designs. At IDF, Skaugen even got Tao He, the president of Chinese device maker Bluebank, to openly praise how much better Intel's reference designs and tech support are.
"If I must complain, Intel's turnkey solution has greatly lowered the entry barrier, making it very easy to design devices," He joked in front of the already amused crowd.
Bluebank is just one of the many Chinese ODMs that are already offering Atom x3-powered devices to potential clients. On the stage, He showed off a 4.5-inch smartphone that will retail for less than $40 (He also mentioned a 4-inch version for about $30), a 5-inch phone with a metallic frame for around $50 and a 7-inch (8mm-thick) tablet with voice calling for just $55. The audience wowed at the tablet.
In addition to Bluebank and its four aforementioned devices, Intel has enlisted 13 other ODMs to commit to 44 more Atom x3 designs this year. And that's on top of Rockchip's 10 ODMs that will use the 3G-R variant (3G, quad-core) of the chip. While this doesn't necessarily reflect the eventual number of consumer models (and some of those designs could have already been sold with other chipsets), it's still a good start; though the 4G-enabled Atom x3 needs to arrive as soon as possible.
Atom x3-based tablets at an electronics expo in Hong Kong.

Both Intel and Rockchip desperately need more quality "hero" devices.
It's all good and well that Intel sees great potential in the entry-level market, but for its new mobile chip to succeed, it must teach its partners -- especially on Rockchip's side -- to respect intellectual property. Both Intel and Rockchip desperately need more quality "hero" devices to boost brand perception. But with Intel-powered knockoffs floating around, it'll be hard to convince other big names to join the party. In the mainstream mobile market, Intel's only got ASUS and occasionally Lenovo on its side.
Even with the potential for intellectual property scuffles, Intel has clearly made the right move by partnering with Rockchip. After all, we are talking about a Chinese company that's working with Google on a system-on-chip module for Project Ara. The company obviously has growing global clout. Intel may be late to the integrated-modem game, but with Rockchip's connections plus growing street cred, it could be on track to catch up with the competition, especially in China where even Qualcomm stumbled recently.
"We want to build long-term partnerships with China," Skaugen said. "This is our 30th anniversary in China. I think some of these partners are the people that will build Intel's brand for the next 30 years. And if you look at companies like Apple or HP that started in the garage, let's not forget what the first PCs looked like. And decades later, I'm glad I have those partnerships."

engadget.

Popular posts from this blog

UK GENERAL ELECTIONS:Inquiry announced into memo alleging Sturgeon wants Tory election victory.

Image
Civil service instigates investigation into leaked memo from Foreign Office about supposed comments made in February Scotland’s first minister, Nicola Sturgeon, with David Cameron in her office at the Scottish parliament earlier this year. Photograph: WPA Pool/Getty A civil service inquiry into a leaked memo which claimed that Nicola Sturgeon privately wanted to see David Cameron remain in power after the general election has been instigated following calls from the First Minister. Ms Sturgeon described the allegation as “100% untrue” and accused Whitehall of “dirty tricks”.
Read more

Sandhurst's sheikhs: Why do so many Gulf royals receive military training in the UK? A parade outside the building at Sandhurst Continue reading the main story In today's Magazine The death list that names 5,000 victims Is this woman an apostate? Voices from a WW1 prison camp The Swiss selfie scandal Generations of foreign royals - particularly from the Middle East - have learned to be military leaders at the UK's Sandhurst officer training academy. But is that still a good idea, asks Matthew Teller. Since 1812, the Royal Military Academy Sandhurst, on the Surrey/Berkshire border, has been where the British Army trains its officers. It has a gruelling 44-week course testing the physical and intellectual skills of officer cadets and imbuing them with the values of the British Army. Alongside would-be British officers, Sandhurst has a tradition of drawing cadets from overseas. Many of the elite families of the Middle East have sent their sons and daughters. Perhaps the most notable was King Hussein of Jordan. Continue reading the main story Find out more Matthew Teller presents Sandhurst and the Sheikhs, a Whistledown production for BBC Radio 4, on Wednesday 27 August 2014 at 11:00 BST It will be available on iPlayer shortly after broadcast Four reigning Arab monarchs are graduates of Sandhurst and its affiliated colleges - King Abdullah of Jordan, King Hamad of Bahrain, Sheikh Tamim, Emir of Qatar, and Sultan Qaboos of Oman. Past monarchs include Sheikh Saad, Emir of Kuwait, and Sheikh Hamad, Emir of Qatar. Sandhurst's links have continued from the time when Britain was the major colonial power in the Gulf. "One thing the British were excellent at was consolidating their rule through spectacle," says Habiba Hamid, former foreign policy strategist to the rulers of Dubai and Abu Dhabi. "Pomp, ceremony, displays of military might, shock and awe - they all originate from the British military relationship." Sheikh Hamad Bin Isa Al Khalifa, King Abdullah, Sultan Qaboos Sandhurst alumni: King Hamad of Bahrain, King Abdullah of Jordan and Sultan Qaboos of Oman It's a place where future leaders get to know each other, says Michael Stephens, deputy director of the Royal United Services Institute, Qatar. And Sandhurst gives the UK influence in the Gulf. "The [UK] gets the kind of attention from Gulf policy elites that countries of our size, like France and others, don't get. It gives us the ability to punch above our weight. "You have people who've spent time in Britain, they have… connections to their mates, their teachers. Familiarity in politics is very beneficial in the Gulf context." "For British people who are drifting around the world, as I did as a soldier," says Brigadier Peter Sincock, former defence attache to Saudi Arabia, "you find people who were at Sandhurst and you have an immediate rapport. I think that's very helpful, for example, in the field of military sales." The Emir of Dubai Mohammad bin Rashid Al Maktoum with his son after his Passing Out Parade at Sandhurst in 2006 Sheikh Mohammad bin Rashid Al Maktoum, Emir of Dubai, with his son in uniform at Sandhurst in 2006 Her Majesty The Queen's Representative His Highness Sheikh Hamad bin Khalifa Al-Thani, The Emir of Qatar inspects soldiers during the 144th Sovereign's Parade held at The Royal Military Academy Sandhurst on April 8, 2004 in Camberley, England. Some 470 Officer cadets took part of which 219 were commissioned into the British Army Hamad bin Khalifa Al-Thani, the Emir of Qatar until 2013, inspects soldiers at Sandhurst in 2004 Emotion doesn't always deliver. In 2013, despite the personal intervention of David Cameron, the UAE decided against buying the UK's Typhoon fighter jets. But elsewhere fellow feeling is paying dividends. "The Gulf monarchies have become important sources of capital," says Jane Kinninmont, deputy head of the Middle East/North Africa programme at the foreign affairs think tank Chatham House. "So you see the tallest building in London being financed by the Qataris, you see UK infrastructure and oilfield development being financed by the UAE. There's a desire - it can even seem like a desperation - to keep them onside for trade reasons." British policy in the Gulf is primarily "mercantile", says Dr Kristian Coates Ulrichsen, of the Baker Institute in Houston, Texas. Concerns over human rights and reform are secondary. The Shard at dusk The Shard was funded by Qatari investors In 2012 Sandhurst accepted a £15m donation from the UAE for a new accommodation block, named the Zayed Building after that country's founding ruler. In March 2013, Sandhurst's Mons Hall - a sports centre - was reopened as the King Hamad Hall, following a £3m donation from the monarch of Bahrain, who was educated at one of Sandhurst's affiliated colleges. The renaming proved controversial, partly because of the perceived slight towards the 1,600 British casualties at the Battle of Mons in August 1914 - and partly because of how Hamad and his government have dealt with political protest in Bahrain over the last three years. A critic might note that the third term of Sandhurst's Officer Commissioning Course covers counter-insurgency techniques and ways to manage public disorder. Since tension between Bahrain's majority Shia population and minority Sunni ruling elite boiled over in 2011, more than 80 civilians have died at the hands of the security forces, according to opposition estimates, though the government disputes the figures. Thirteen police officers have also lost their lives in the clashes. "The king has always felt that Sandhurst was a great place," says Sincock, chairman of the Bahrain Society, which promotes friendship between the UK and Bahrain. "Something like 20 of his immediate family have been there as cadets. He didn't really understand why there was such an outcry." David Cameron and King Hamad David Cameron meeting King Hamad in 2012... A protester is held back by police ... while protesters nearby opposed the Bahrain ruler's human rights record Crispin Black, a Sandhurst graduate and former instructor, says the academy should not have taken the money. "Everywhere you look there's a memorial to something, a building or a plaque that serves as a touchstone that takes you right to the heart of British military history. Calling this hall 'King Hamad Hall' ain't gonna do that." Sandhurst gave a written response to the criticism. "All donations to Sandhurst are in compliance with the UK's domestic and international legal obligations and our values as a nation. Over the years donations like this have saved the UK taxpayer a considerable amount of money." But what happens when Sandhurst's friends become enemies? In 2001, then-prime minister Tony Blair visited Damascus, marking a warming of relations between the UK and Syria. Shortly after, in 2003, Sandhurst was training officers from the Syrian armed forces. Now, of course, Syria is an international pariah. Journalist Michael Cockerell has written about Libyan dictator Colonel Gaddafi's time at the Army School of Education in Beaconsfield in 1966: "Three years [later], Gaddafi followed a tradition of foreign officers trained by the British Army. He made use of his newfound knowledge to seize political power in his own country." Ahmed Ali Sandhurst-trained Ahmed Ali was a key player in the Egyptian military's removal of Islamist President Mohammed Morsi That tradition persists. In the 1990s Egyptian colonel Ahmed Ali attended Sandhurst. In 2013 he was one of the key figures in the Egyptian military's removal of Islamist President Mohammed Morsi, now rewarded by a post in President Sisi's inner circle of advisers. In the late 1990s there were moves by the British government under Tony Blair to end Sandhurst's training of overseas cadets. Major-General Arthur Denaro, Middle East adviser to the defence secretary and commandant at Sandhurst in the late 1990s, describes the idea as part of the "ethical foreign policy" advocated by the late Robin Cook, then-foreign secretary. Tony Blair and Robin Cook Tony Blair and Robin Cook at one point planned to end Sandhurst's training of overseas cadets The funeral of King Hussein in 1999 appears to have scuppered the plan. "Coming to that funeral were the heads of state of almost every country in the world - and our prime minister was there, Tony Blair," says Major-General Denaro. "He happened to see me talking to heads of state - the Sultan of Brunei, the Sultan of Oman, the Bahrainis, the Saudis - and he said 'How do you know all these guys?' The answer was because they went to Sandhurst." Today, Sandhurst has reportedly trained more officer cadets from the UAE than from any other country bar the UK. The May 2014 intake included 72 overseas cadets, around 40% of whom were from the Middle East. "In the future," says Maryam al-Khawaja, acting president of the Bahrain Centre for Human Rights, "people will look back at how much Britain messed up in the [Middle East] because they wanted to sell more Typhoon jets to Bahrain, rather than stand behind the values of human rights and democracy." "It's one thing saying we're inculcating benign values, but that's not happening," says Habiba Hamid. Sandhurst is "a relic of the colonial past. They're not [teaching] the civic values we ought to find in democratically elected leaders." line Who else went to Sandhurst? Princes William and Harry, Winston Churchill, Ian Fleming, Katie Hopkins, Antony Beevor, James Blunt, Josh Lewsey, Devon Harris (From left to right) Princes William and Harry Sir Winston Churchill Ian Fleming, creator of James Bond (but did not complete training) Katie Hopkins, reality TV star Antony Beevor, historian James Blunt, singer-songwriter Josh Lewsey, World Cup-winning England rugby player Devon Harris, member of Jamaica's first bobsleigh team line Sandhurst says that "building international relations through military exchanges and education is a key pillar of the UK's international engagement strategy". Sandhurst may be marvellous for the UK, a country where the army is subservient to government, but it is also delivering militarily-trained officers to Middle Eastern monarchies where, often, armies seem to exist to defend not the nation but the ruling family.

Image
Generations of foreign royals - particularly from the Middle East - have learned to be military leaders at the UK's Sandhurst officer training academy. But is that still a good idea, asks Matthew Teller. Since 1812, the Royal Military Academy Sandhurst, on the Surrey/Berkshire border, has been where the British Army trains its officers. It has a gruelling 44-week course testing the physical and intellectual skills of officer cadets and imbuing them with the values of the British Army. Alongside would-be British officers, Sandhurst has a tradition of drawing cadets from overseas. Many of the elite families of the Middle East have sent their sons and daughters. Perhaps the most notable was King Hussein of Jordan. Four reigning Arab monarchs are graduates of Sandhurst and its affiliated colleges - King Abdullah of Jordan, King Hamad of Bahrain, Sheikh Tamim, Emir of Qatar, and Sultan Qaboos of Oman. Past monarchs include Sheikh S
Read more

Ebola Outbreak: Guinea Declares Emergency As Overall Deaths From Ebola Rise To 1,069

Image
Health workers take passengers' temperatures infrared digital laser thermometers at the Felix Houphouet Boigny international airport in Abidjan on Aug. 13, 2014. Ivory Coast on Monday banned air travellers from Guinea, Liberia and Sierra Leone, the three countries worst-hit by the Ebola outbreak, and ordered its flagship carrier Air Cote d'Ivoire to cease flights to and from them. Reuters/Luc Gnago Guinea, one of the worst-hit West African nations in the ongoing Ebola outbreak, announced a state of emergency Wednesday. The World Health Organization, or WHO, also  said  that four new people died in Guinea between Aug. 10 and Aug. 11. The total death count in Guinea from the latest epidemic was estimated at 377 by WHO while the number of cases reported had risen to 510. Overa
Read more