Monday, October 31, 2011

Intel Preparing To Ditch Google Smart TV Business


A new report released by market research firm IHS indicates that Intel has lost interest in building processors for smart TVs and especially for Google TVs. Intel held less than 2% of the TV Soc market in the first half of the year.

According to IHS, Intel is “quietly reshuffling resources away from the connected television semiconductor space” and is focusing much more on mobile devices such as smartphones and tablets.

Samsung GoogleTV Blu-ray box. Not pretty, but hey, it's a start.
Samsung GoogleTV Blu-ray box.

Google TV is largely considered to have flopped and the outlook for smart TVs isn’t encouraging. While most TVs sold by 2015 are expected to be smart TVs, there is virtually no growth in TVs this year and the competitive landscape is forcing semiconductor makers such as Broadcom to exit the market. The smart TV is still n its early stages as there is not even an agreed definition what a smart TV is.

Taiwanese companies Mstar Semiconductor and Mediatek dominate the TV SoC market with market shares of 39% and 12%, respectively. U.S. based Trident has about 6%. Intel was among a group of new players which held a combined share of less than 2%.

“In a television semiconductor market characterized by entrenched suppliers and weak near-term growth prospects, Intel was facing enormous challenges in trying to establish itself as a competitor,” said Randy Lawson, principal analyst for display and consumer electronics at IHS. “And with the first-generation Google TV products proving unsatisfactory given their slow sales, it’s no surprise that Intel is moving away from the television SoC market.”

Wolfgang Gruener in Business Products on October 28

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