Though the “PC is dead” mantra that has been bandied about in the tech world over the past year or two isn’t quite true, Intel (NASDAQ: INTC) CEO Brian Krzanich recognizes that his company’s future growth will require a shift from that shrinking segment to fast-growing markets such as cloud-based data centers, wearables, commercial drones, and the Internet of Things (IoT).
Included in Intel’s IoT ambitions is the burgeoning self-driving car market, and it just added to its penetration in that area by signing a deal with heavy hitters Delphi (NYSE: DLPH) and Mobileye (NYSE: MBLY). Intel will provide a System-on-a-Chip (SoC) to the Delphi and Mobileye partnership, which intends to get an autonomous vehicle controlled by its platform on the road by 2019.
An SoC is a single processor that integrates multiple components. The arrangement is the second of its kind for Intel and Mobileye, which also partnered with German automaker BMW to develop an integrated, open smart-car platform.
Estimates about the potential market size vary, of course, but similar to their forecasts in virtually all aspects of IoT, most pundits expect several million self-driving vehicles will be driven off of new car lots in the coming years, generating billions of dollars annually for the tech companies behind them. Though it’s just one piece of Intel’s greater IoT strategy, this latest deal with Mobileye and Delphi should help keep up the division’s positive momentum.
Of Intel’s six primary business units, IoT was easily its fastest growing last quarter, with revenues climbing 19% year over year to $689 million — and up 20% sequentially. With data center results proving strong as well, Krzanich’s key initiatives continue to drive a larger percentage of total sales quarter in and quarter out.
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