Intel abandons Atom mobile chip to refocus on Internet of Things

Intel has abandoned its strategy around the Atom mobile chip as it gears up to refocus on modems, data centers, Internet of Things and memory chips, a move propelled by profitability.

Despite a global workforce matching that of Apple, Intel's revenues stood at a quarter of Apple's last year, and the Mac-maker raked in profits 4.7 times higher on sales of finished devices.

Apple's products are now mostly powered by Ax chips designed in-house by the company. Other smartphone and tablet makers earned almost nothing, and virtually all had adopted the ARM architecture Apple initially co-developed back in the early 1990s for use in its Newton MessagePad tablet, leaving no room for Intel's rival Atom architecture to make inroads.

According to commentators, the move pulls the plug on Intel's plans to gain access to smartphone devices market after its former chief executive Paul Otellini, overlooked the prospect of supplying chips for Apple's original iPhone in 2006 as not worth doing.

Four years later, Intel sought to reconnect with  Apple with Silverthone, a new x86 chip it expected the company to use in its initial iPad. The chip was subsequently rebranded Atom.
 
However, by the time, Apple had acquired the expertise to develop its own custom ARM Application Processor, known as the A4, which it used in the first iPad, then in iPhone 4 and Apple TV.

Meanwhile, Intel is building its new mobile strategy around 5G, in addition to commitments to the PC. 5G is the next generation mobile network, and Verizon and AT&T are already in the process of testing their 5G networks.

According to commentators with the smartphone market getting competitive to the point that most companies were not making money on smartphones, Intel might be in pole position to leverage its 5G strategy.