Barron’s has an interesting story on how Intel is getting its nose bloodied in the cell phone and non-PC business by Texas Instruments and Qualcomm. The story points out that it has more competition from the likes of Korea’s Samsung, Japan’s Renesas Technology and Switzerland’s STMicroelectronics.
“They are not today one of the accounts that we routinely go up against,” says Bill Krenik, who’s in charge of advanced cellphone products at Texas Instruments. “We occasionally bump into them, but we don’t see them as a strong competitor right now. I wouldn’t want to trade places with my counterpart at Intel,” adds Krenik. “It’s a very daunting thing to try to get into this market.”
The story reminds us of blown opportunities by Intel. In October 1999 it had bought DSP Communications for $1.6 billion, but still has nothing to show for it. Ditto from its partnership with Analog Devices. In October 2002, company’s Manitoba product – a flash memory, communications processor and an applications processor combo capable of tricks like video decompression and handwriting recognition – was announced but had no new takers. Things have not improved since then. “The losses in communications depress Intel’s earnings about 10%, figures Sanford C. Bernstein analyst Adam Parker, who forecasts $1.17 a share in earnings for next year,” Barrons says.