Google Raises Concerns over Intel’s Chip Manufacturing Plans

Published By : 03 Nov 2017 | Published By : QYRESEARCH

The new smartphones announced by Google, Pixel 2 and Pixel 2 XL smartphones, are expected to be high-end commodities meant for the premium spenders. The unique selling point of these phones is the Pixel Visual Core chip, which is expected to give the cameras of these phones exceptional qualities. The Image Processing Unit (IPU) has been designed by Google. Despite the news about Google designing this chip, a recent piece of information states that the company has worked with Intel to design the same. Nothing has been said about the collaboration between Google and Intel.

However, the new information makes a sense as Intel did show an inclination toward expanding its portfolio in 2016 when it bought Movidius. This acquisition has allowed Intel to make deliberate efforts to focus on computer vision technology. In the recent months, there have been growing concerns about who is really manufacturing the chip. The long-heated debate over Intel manufacturing the chip is being refuted as analysts state that the company has nothing to gain from it.

Intel to Remain Unharmed if Collaboration Ends

Hypothetically speaking, if Google is to sell 2 million Pixel 2 and Pixel 2 XL phones in 2018, it will only get Intel about $10 per chip, which is equal to $20 incremental rise in its revenue. This won’t make much of a difference to the company’s financial position as it is already on track. Thus, if Intel has to take the hit for manufacturing the chip, it truly won’t make a difference.

On the other hand, if Google has to end the collaboration it opens up avenues for Intel. This would mean that other smartphone manufacturers will be able to take advantage of Movidius-based chips, thus boosting Intel’s profit margins.

Back To Top