Intel planning deeper penetration of tablet, smartphone markets
April 01, 2014 00:00 By Asina Pornwasin The Nation
Firm aims to take part in every segment, from data centres to ultra-mobile devices
Intel Microelectronics (Thail-and) says it plans to cash in more on the emerging tablet and smartphone markets.
Its parent Intel Inc has set this as a goal for its operations worldwide, which was announced at its annual Intel Developer Forum last year. It aims to take part in every segment, from data centres to ultra-mobile devices including tablets, phones and wearables.
Sontiya Nujeenseng, country manager of the Thai unit, said Intel this year wanted tablets and smartphones to contribute a double-digit percentage of its revenue. Meanwhile it will also maintain its leadership in the personal-computer market.
Intel will create a “mobile speciality retail” channel for new products for tablets and smartphones. The company has a significant marketing budget for this new direction. It expects the tablet and smartphone segments together to contribute around 10 per cent to its total revenue by the end of this year.
In Thailand, Intel aims to hold more than 10 per cent of the tablet market. According to International Data Corporation, those devices are expected to grow in number in this country by 10-20 per cent from last year – and this excludes the government’s “One Tablet per Child” project.
The PC market is still Intel’s main source of revenue, even though its growth is slowing. PCs will contribute about 90 per cent to the company’s revenue this year. About 3 million PCs are expected to be sold in Thailand this year, and the average price of a central processing unit is around US$100 (Bt3,200), so the company’s revenue from this source market will be around $300 million this year, Sontiya said.
“Globally, Intel aims to gain [revenue from] 40 million tablets, which is around 13 per cent of the total worldwide. In Thailand, we cannot give the target figures. In terms of volume, tablets and smartphones will account for around 20 per cent of our total sales this year, but in terms of value, they will contribute around 10 per cent, since the PC market has higher average sales,” he said.
To achieve the marketing goal, Intel needs to increase the number of channels to cover the new market territory. Currently, it has around 80 per cent of more than 2,000 information-technology channels nationwide, but no telecom channels. Therefore, he said, Intel will create a telecom channel with the aim to gain all chain stores such as CSC, TG Phone, and Jay Mart, and to gain more retail shops to total around 1,000 outlets throughout the country.
“Thailand has Intel’s second-largest marketing budget after Indonesia,” Sontiya said.
He said Intel was ready and confident to enter these new markets, especially tablets. His urgent mission is to build Intel’s share of the tablet and smartphone markets.
Intel’s core product families include the Core i brand – Core i3, i5 and i7 – for desktops, notebooks and tablets; Celeron and Pentium for the value segment, or first-time buyers; and the Atom family for desktops, notebooks, tablets and smartphone.
“Innovations for desktops are still growing, especially all-in-one desktops that help drive the growth of the desktop market. There are also new innovative user interfaces such as touch, voice assistant, and bio password,” Sontiya said.
Moreover, Intel also continues to focus on servers and data centres. For every 400 smartphones sold, one server is sold. Also, “Internet of Things” is another driving factor for the growth of Intel’s revenue.