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Collateral damage from Intel's DTV decision

October 14, 2011 // Junko Yoshida

Collateral damage from Intel's DTV decision

So, who are the unsuspecting victims of Intel Corp.'s plans, publicly disclosed this week, to “wind down” its digital TV SoC business? Rick Doherty, co-founder and director of Envisioneering Group, identifies the real victims as “more than 20 Chinese ODMs, all hoping to ride Google TV's coat tails.”

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These companies were developing add-ons to LCD display units for Google TV. They were getting lots of help from Intel to prototype [them], and approach U.S. and global retailers, said Doherty. They were all headed for a CES 2012 launch.

Meanwhile, when asked which part of the CE business Intel is getting out of, an Intel spokesperson said: the retail [digital TV] business. While adding that Intel will continue to work with a few partners on a case-by-case basis, she declined to name names of such partners.

For Intel, ditching the digital TV SoC business was a tough decision, but it creates a clear path to align its consumer business with Ultrabook devices, smartphones and tablets, which the Intel spokesperson now describes as top corporate imperatives.With this decision, Intel no longer needs to get caught up with, or getting distracted by, what might turn out to be fierce price competition on the digital TV SoC market.

Intel is now wisely shifting its CE silicon strategy to the gateway and IP set-top-box media processor businesses. Meanwhile, the company will wind down its operations in the Digital TV business, the spokesperson added.

So, what's left of Intel's CE business? The IP set-top media processor business and the gateway business, says Intel. These remaining CE businesses will be folded into Intel's tablet organization headed up by Doug Davis. By IP set-top media processor business, Intel means SoC silicon and hardware designed for high-quality digital set-top boxes where content delivery is via IP networks.
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