Asus cuts orders of Intel's smartphone platforms

Intel set to lose even more money in mobile

Asustek is cutting orders for Intel smartphone platforms and turning to platforms developed by Qualcomm and MediaTek instead due to delays in delivery of Intel's 4G SoFIA LTE chip, according to reports in the Far East.

The shift will come as a blow to Intel's mobile business, which has seen its ambitions crimped by the standardisation around rival ARM, and which has lost more than $10bn over the past three years despite a merger with Intel's PC Client Group, in a bid to drive some economies.

Asustek and Lenovo are Intel's two largest smartphone partners and the cut in orders will decrease sales from about six million units in 2015 to fewer than five million in 2016, according to the specialist electronics industry newspaper Digitimes.

"Asustek shipped about 20 million smartphones in 2015 and Intel-based models accounted for around 30 per cent of the volume. The percentage is expected to drop further to below 20 per cent in 2016 as Asustek's smartphone shipments are expected to reach 25 million units," claimed Digitimes.

It continued: "Within Asustek's upcoming ZenFone 3 series, which will be released in June, only 15 per cent of the shipments will use Intel's platform."

Digitimes also suggested that demand for Intel's smartphone platforms is likely to decline further in 2017, perhaps by as much as 50 per cent.

The news comes ahead of the launch of Asustek's latest ZenFone 3 flagship smartphone, which will use USB-C for connectivity, offer fingerprint authentication for users, and will come with a camera featuring fast laser auto-focus, according to China's Economic Daily News. The device will be unveiled at the end of May,