Why Doesn't Intel Make Smartphone CPUs?

Techquickie ·Techquickie ·2019-05-06 · 905 words · ~4 min read
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0:07 Anyone who's ever used a desktop or laptop PC, and that is virtually all of you, despite what that annoying little girl in the iPad
0:14 commercial says, you've probably used an Intel processor. They are literally
0:19 everywhere. But one arena from which Intel is noticeably absent is your pants, or more specifically,
0:26 the smartphone in the pocket of your pants. And with more and more people
0:31 eschewing traditional desktops and laptops in favor of phones and low-power tablets, it raises the question,
0:38 why aren't they? Why is one of the largest chip manufacturers on Earth
0:44 missing out on such a huge opportunity to rake in even more of that paper?
0:49 Well, as it turns out, Intel tried,
0:52 but much like what often happens at a dead-end job or in a bad way,
0:56 relationship, they weren't totally committed, and they ended up failing.
1:01 So, do you remember how I was saying that Intel chips are incredibly common in desktops and laptops?
1:06 A huge part of the reason for this is that for decades,
1:10 Intel has followed a philosophy in chip making that involves consistency down to the smallest details.
1:17 Kind of like how a Big Mac is exactly the same, no matter where you buy it. So,
1:23 nothing like the picture on the menu.
1:25 Every Intel fabrication plant follows the same processes,
1:28 uses the same equipment, and even has the exact same color of their light bulbs, down to a science. And to their credit,
1:37 this uniformity has allowed them to manufacture huge numbers of chips
1:42 quickly and with consistent quality, and helped Intel capture a huge amount of the market share for desktop, not to mention
1:50 server CPUs. But there's a downside. This
1:55 rigid structure also limits Intel's ability to branch out from the desktop and laptop
2:02 x86 chips that they've traditionally been known for. They simply can't make the smaller, more power-efficient
2:09 chips that go into smartphones at a great enough scale to make it profitable, as these chips have a very different
2:17 architecture compared to whatever is sitting inside your PC.
2:21 By contrast, the companies that design the chips that you'll find
2:25 in most smartphones, like Qualcomm and Apple, they actually contract out the production of them to dedicated fabrication companies, like
2:35 TSMC, who have designed their fabs to be more versatile and to meet the needs of
2:41 many different designers that want a variety of chip architectures turned into usable parts. So, back in the mid-2000s,
2:48 when the idea of computing on mobile devices was starting to gain traction,
2:53 Intel tried to get in on the idea of a chip architecture, but it didn't work.
2:55 Intel tried to get in on it by making low-power atom chips using familiar x86 design principles,
3:01 but they didn't want to devote tons of resources and change their way of doing business to become a major player in the mobile game,
3:10 especially because, at that time, they were trying to stave off AMD in the traditional PC space.
3:15 Because remember, back then, those two companies were much closer in market share than they are today. In fact,
3:22 Intel even passed up an opportunity
3:24 to make the processors for the original iPhone around that same time, because they thought that cell phone
3:32 infrastructure wasn't good enough to become the future of the Internet.
3:38 Yeah, about that.
3:40 Anyway, it's not like all is lost for Intel, because even though they haven't had the capacity to make enough of the
3:47 systems on a chip or SOCs that lie at the heart of modern smartphones, there have been reports that Apple
3:54 may begin replacing
3:57 Qualcomm modems inside of iPhones with Intel models, and
4:02 Intel is dumping tons of money into becoming a major player in 5G,
4:07 hoping to have its own components provide communications and processing for the Internet of Things.
4:13 So if you own some Intel stock, keep your fingers crossed that next time they won't ignore the big thing in mobile tech.
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