In recent months Intel seems to have changed its strategy of fighting for a market position in the wearable and augmented / virtual reality market. After earlier investments in the technology as well as established companies, some of these technologies seem to have been discontinued. Intel’s Project Alloy is Over This week came the latest news about shutting down Recon Instruments as reported by several news outlets including Bloomberg.
Intel only acquired Recon Instruments, the maker of sports-oriented AR headsets in 2015 as a start up business for their AR/VR intentions. Now the end seems to have come for this endeavour if the rumours are true.
On the other hand the Recon Instruments website is still up and running and even the web store still accepts orders. However, this may just be their way of selling off existing stock.
The Recon Instruments Store is still up and running
Analyst Comment
What do all these news have in common? They are not mentioned on the Intel newsroom at all and could be summarized as ‘good informed rumors’. While Intel has confirmed, for example, the discontinuation of Project Alloy, they have not mentioned or published anything about Recon Instruments. All in all, the picture seems to confirm a strategic change at Intel and its interest in the wearable and AR/VR market. Maybe this is part of a new strategy to continue to strengthen non-PC business within Intel, but focused on higher growth segments where Intel sees better chances for itself.
Strategic redirection is typically an area that is carefully watched by the financial analysts as it directly affects the long term outlook for a company. Interestingly the financial analysts seem to not care or agree with Intel’s assessment. Since the middle of this year the Intel share price has been on a steady rise and has reached its highest point since October 2000. The remaining question is what this means for Intel’s long term outlook in this market. From an outside perspective Intel seems to give up another chance to secure market share in the mobile market segment, on the other hand they may have concluded that the wearable and AR/VR markets are not ready for prime time and fighting for a small part of a small market is just efficient for Intel. (NH)
