Major layoffs in the wearable division staff are a signal that Intel is walking away from wearables. The company hasn’t exactly succeeded in its incursion into the wearable segment, and now it appears as if it has decided to abandon this market entirely.
Rumor has it that Intel’s New Devices Group (NDG) is going through a lot of layoffs. The company has already informed employees about important changes within the division. Many are expected to lose their jobs before 2016 ends. This news is not that shocking since Intel hasn’t been able of making much progress with wearables, considering Intel’s Basis Peak device recall this summer.
Intel incursions into wearables
Intel Corporation is an American multinational focused on technology. It was founded in 1968. It is one of the world’s largest semiconductor chip makers. It also invented the x86 series of microprocessors, which are commonly used in PCs. It also produces network interface controllers, flash memories, and embedded processors.
As the computing and technology world advances so has Intel attempted to move forward and introduce the company into the wearable market. In 2014, Intel bought Basis, a producer of fitness watches. It was part of Intel’s plan, unveiled when it revealed the New Devices Group, which would make possible for the company to play a role in the emerging wearable market.
As well, Intel picked up Recon in mid-2015, which made wearable head-ups displays for cyclists and snowboarders.
“Intel is an ideal partner for Recon. Intel’s CEO, Brian Krzanich, made his commitment to wearable technology very clear shortly after assuming his current role in 2013. Brian and his team, including New Technology Group head Josh Walder, share our vision for the potential of smart eyewear in the consumer and enterprise market, and this deal reflects that shared vision” said Recon’s co-founder Dan Eisenhardt in 2015.
The wearable market has been tough for Intel
A few months ago we could see how Intel’s plan on wearables started crashing down. In June, the company recalled its Basis Peak devices since some consumers reported discomfort while using them due to overheating. According to the company, 0.2 % of the users were affected.
Instead of replacing the units or launching a new version, Intel decided to stop the sales of the Basis Peak devices and refund customers. As well, the company decided to shut down the Peak’s Software support, a decision that would be fully effective by the end of the year.
This was just a step back for Intel’s wearable plans. According to sources, the company has finally decided to exit this technology sector after laying off most of the wearable division staff. Most of the work made in the New Devises Group will never see the daylight. This includes the Basis Ruby, a fitness watch whose release will never be announced.
Source: Android Authority