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Intel Ditching Smart TV Business

By - Source: IHS Press Release | B 19 comments

It appears that Intel will be turning its back on the once-praised Google TV package.

One the eve of the announcement of an Android Market version of Google TV, market research firm IHS released some numbers that show that Intel may not be as committed to the smart TV market anymore as it announced back in 2010.

Wrapped up in a group of new entries in the TV chip supplier segment, Intel had less than 2 percent market share in the first half of 2011. According to IHS, Intel has begun shifting its resources away from the TV market and is now focusing on mobile devices such as tablets and smartphones. The TV SoC market is dominated by Mstar with a 39 percent share and Mediatek with 12 percent.

One of the problems Intel and other new suppliers may be facing is that the term smart TV isn't defined yet and that, despite a TV market volume of hundreds of millions of units each year, there are long replacement cycles and the smart TV just has not caught on yet. IHS said that it will take several more years until the smart TV will hit substantial volumes - and account for 65 percent market share by 2015.

“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.” There was no information how Intel will react to the Google TV upgrade.

However, it is already clear that it will take much more than a sophisticated chip to break into the TV market as even Broadcom hinted that it would be leaving the TV chip because of the rough competitive environment.

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  • 6 Hide
    ikyung , October 31, 2011 6:31 PM
    Smart move. TVs usually last an average household 10-15years. Longest refresh cycle out of any other electronics. It will be another decade before average households replace their 1080p TVs to 2k.
  • -4 Hide
    sgtopmobile , October 31, 2011 6:35 PM
    SMART TV? what about ALL IN ONE TV!! can you imagine??? XBOX 360-like hardware to play games, a computer, a camera, windows/mac/linux,glass free 3D!!!!! ...... too bad apple already patented, and they will sue anyone who names it, crap i need a lawyer.....
  • -1 Hide
    toastninja17 , October 31, 2011 6:51 PM
    Honestly...good. Intel just needs to focus on making the world's most epic processor chipsets.
    I do think that the concept of a "smart tv" has the potential to catch on quicker than 3D has (or did..).
    It's more function than fashion, which I think is more widely acceptable.
  • 0 Hide
    spentshells , October 31, 2011 6:54 PM
    I agree with toastninja intel needs to stay the center of thier own universe instead of being a minor player in someone else's
  • 1 Hide
    billybobser , October 31, 2011 7:56 PM
    unless a tv does more than a tv, you're not gonna buy a new one unless the old one breaks
  • 1 Hide
    youssef 2010 , October 31, 2011 8:24 PM
    Intel doesn't quit easily. The fact that they quit the smart TV business speaks volumes about the challenges they faced. Or maybe they just compared problems to benefits and concluded that their best interest is to invest elsewhere.
  • 1 Hide
    kyee7k , October 31, 2011 8:56 PM
    Thanks to Apple, voice-activated TVs and toasters :D  are the next big thing--at least IMO.
  • 0 Hide
    alidan , October 31, 2011 9:04 PM
    ikyungSmart move. TVs usually last an average household 10-15years. Longest refresh cycle out of any other electronics. It will be another decade before average households replace their 1080p TVs to 2k.


    for old crts maybe, but we are getting close to 5-6 years on out plazma, and it REALLY needs to be replaced.

    pluss what does a smart tv do? deliver services to your tv such as 1080p video off youtube and netflix? 1080p isnt going anywhere anytime soon.

    a smart tv will last a hell of allot longer than most people think. at worst, it could be a modular device that plugs into the tv, think a smartphone sized card, that way you keep the on the fly upgrade ability, and you can get more content as needed.
  • 1 Hide
    zaho0006 , October 31, 2011 9:25 PM
    Another issue is that even if you are buying a new TV you can buy a streamer box that will typically do significantly more for much less.

    I bought a 32" samsung with a WDTV live+ for under $400, where the cheapest comparable smart TV was $800.
  • 0 Hide
    hiryu , October 31, 2011 10:18 PM
    jacekringI bought my last flat screen about 1.5 years ago. Don't plan on replacing it for at least 8 years, unless it breaks. It's a 1080p 120hz 58" flat screen, I mean why would I buy a new one anytime soon?

    I don;t think the current TV will last that long, the more electronic stuff people put into TV means more breakable components and thus the chance of breaking one of them is higher. So the new TV probably would not last as long as before.
  • 0 Hide
    cheepstuff , October 31, 2011 10:47 PM
    billybobserunless a tv does more than a tv, you're not gonna buy a new one unless the old one breaks


    Historically, TVs have changed little from year to year. If "smart TVs" became popular, it would be conceivable to see a consumer industry that turns around quickly similarly to the phone and computer industries. Intel, after having experimented with being involved in that industry, has probably decided that it is not profitable enough to be worth development.
    That does not necessarily mean that the industry is a flop, Intel most likely decided to leave because it is primarily concerned with the mobile market. They want to rally as many extra resources as possible to outperform ARM and to gain a dominant position in that industry.
  • 1 Hide
    waethorn , October 31, 2011 11:26 PM
    This is the same outcome as all of Intel's side projects. Somebody name one side project by Intel (ie. anything other that CPU's) that was actually successful.
  • 1 Hide
    eddieroolz , November 1, 2011 12:48 AM
    TV in general is not as active and vibrant as it used to be in my opinion. There are people like me that still use our 10-year old tube TV simply because it gets the job done and I don't watch more than 5 hours a week.
  • 0 Hide
    darkavenger123 , November 1, 2011 2:36 AM
    sgtopmobileSMART TV? what about ALL IN ONE TV!! can you imagine??? XBOX 360-like hardware to play games, a computer, a camera, windows/mac/linux,glass free 3D!!!!! ...... too bad apple already patented, and they will sue anyone who names it, crap i need a lawyer.....

    Actually, in the 80's, they already have Nintendo's All-in-One with console and TV....it didn't sell. Anyway, smartTV is a lot of nonsens. My standard TV + wdtv live is alreay some sorta smart TV....or you plug in your HTPC...immediately makes your Smart TV looks like a moron...and yeah, i just bought a new 40" FullHD LCD TV....definitely no reason to replace this for at least 6 - 7 years if it's not broken.
  • -1 Hide
    de5_Roy , November 1, 2011 2:39 AM
    i guess no one wanted to buy something with an overpriced intel chip with we're-not-evil-but-we-want-to-control-your-life google in it. people already have ultrabooks to worry about!
    intel could learn something from this.
    arm could use their smartphone chips in these smart tvs if they haven't done it already.
  • 0 Hide
    brothermist , November 1, 2011 5:34 AM
    The way that article reads to me is "why spend all the time and money on a market where most consumers purchase only 1 or 2 units at $1000 over 10 years when there is a market that consumers purchase a new unit at $300-$500 every year?" The "oh, wow, a new one... I have to have it!" mentality of tablet and smartphone users isnt going to cross over to the TV world. Most people switch to new "better" phones every 1-2 years, regardless of whether their current phone is still 100% operational or not. So even at a lower price point there is a lot more money to be made. I can see the tablet market going the same route. Makes sense to go where the money is.
  • 0 Hide
    DavidC1 , November 1, 2011 9:18 AM
    They are NOT ditching Smart TV. To make it clear, "they" is Intel.

    http://venturebeat.com/2011/10/12/intel-confirms-it-will-drop-smart-tv-initiative-to-focus-on-smartphones-tablets-and-thin-laptops/

    Quote:
    Intel will still make chips for the consumer electronics market, focused only on gateway and internet protocol set-top boxes.


    What do you think IP Settop boxes are? It's like what Comcast and other major TV cable service providers offer as an extension to their service. BTW, Comcast is using older Intel chips for testing on future products. Intel is again, NOT out of Smart TV. They are actually gaining traction in Europe.

    What they are out of is things like what Google TV tried to do. Mini version of an HTPC with limited operating systems and features.

    Quote:
    This is the same outcome as all of Intel's side projects. Somebody name one side project by Intel (ie. anything other that CPU's) that was actually successful...


    Networking, which no one here seems to know because they are doing well in the server market.

    SSD, which they jump started, and is respected for reliability.

    Side projects and "skunkwork projects" create one thing. They trigger a new market that wasn't there before. Research drives innovation and Intel is one of the biggest contributors to it.
  • 0 Hide
    richaard_steeven , May 10, 2012 11:57 AM
    http://www.tomshardware.com/news/intel-google-tv-smart-tv-hdtv,13856.html
  • 0 Hide
    richaard_steeven , May 10, 2012 12:04 PM
    Intel is new in smart TV making, if it has to come on front of smart TV market then it has to beat big giant of smart TVs like LG which is well known for better smart interface.