Signs and market rumors seem to be pointing towards Intel’s withdrawal from the wearables market as the company has not succeeded in its attempts to conquer it.
Intel Corporation or Intel Inc is a multinational company based in the Unites States and which was established in 1968.
Since then, it has gone on to become one of the biggest technology companies. Its most famous products include flash memories, microprocessors, embedded processors, and interface controllers.
Intel is hoping to go a step beyond and has started investing in the Artificial Intelligence domain by its acquisition of Nervana. Still, other company areas are not progressing as it was hoped for.
Such an area is the wearables market, which was first approached following Intel’s 2014 and 2015 various company acquisitions.
The first such wearable market buy came in the form of Basis in 2014, as the company produced fitness smartwatches.
Basis became a part of the Intel New Devices Group or NDG wing. At the moment, the NDG held a good position in the developing wearables market.
Its purpose was to continue and advance the research and development needed by the product so as to transform it into an important market player.
Intel once again refocused its attention on the market back in June 2015 when it acquired Recon. The wearables company produced heads-up display wearables specifically for athletes and also had special snowboarder and bikers models.
The Recon Co-founder, Dan Eisenhardt revealed his fate in the sales as he considered that Intel was the ideal partner for his company.
Thus, Brian Krzanich, the Intel CEO went to further ensure his commitment to entering the wearables market. Krzanich made this one his main targets after acceding to his CEO position back in 2013.
As Eisenhardt pointed out, the wearables mission was very clear as both Krzanich and Josh Walden, the New Technology Group head, shared a common vision.
Still, that visions seems to be blurring as the company has not managed to make such an impact on the market.
Quite on the contrary, this summer, Intel felt that it had to recall some of its wearable products in fear of overheating.
The call back targeted the Basis Peak smartwatch, which reported overheating cases in just about 0.2 percent of its users.
As the company could have just replaced the respective units, it instead chose the issue a product recall. Later this same year, Intel stopped the Peak software support and also shut down its cloud storage options.
As they have quite failed in their mission to make a splash in the wearables market, things are reportedly not looking too bright for the NDG.
Reports seem to indicate that Intel’s NDG will be suffering from a series of personnel cut-offs, many of which are expected to take place before the end of the year.
Although the company might be losing some of its staff, some analysts do not believe that Intel will be abandoning the wearables market.
Instead, most are expecting a shake up and change in direction if Intel will wish to continue in the area.
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