Intel Showcases New Wearable Technology At CES 2015

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In his keynote speech at the ongoing Consumer Electronics Show (CES) 2015, Intel (NASDAQ:INTC) CEO Brian Krzanich unveiled a new button-sized computing system designed for smart clothes and other wearables. Named Curie, the module is highly power efficient and highly integrated with a processor and controller, a bluetooth low-energy radio, motion sensors and a coin-sizes battery with recharging capablity.  In short, it is Intel’s first purpose-built system-on-chip (SoC) for wearable devices. The module is scheduled to ship in the second half of this year. Earlier this week, the company introduced the full lineup of its 14 nm fifth generation core line of processors as well as its first 14nm 64-bit Atom chips. (Read: Intel Launches The Full Lineup Of Its 14nm Broadwell Chips At CES 2015)

Intel announced a number of technology advancements and initiatives aimed at accelerating computing into the next dimension, at CES 2015. (Read Press Release) Some of them are:

– A new application  for Intel RealSense cameras spanning robots, flying multi-copter drones and 3-D immersive experiences. Intel introduced Nixie, the 2014 “Make it Wearable” challenge winner and the first wearable camera that can fly.

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– Intel also unveiled a new wearable device in collaboration with Oakley, which is a leading product design and sport performance eyewear brand. Oakley is the first Luxottica Group brand that Intel is working with to fuse premium, luxury and sports eyewear with smart technology.

– A new Diversity in Technology initiative, which includes a $300 million investment to encourage more diversity for female engineers at Intel and within the technology industry at large.

– A 3D collaboration with HP

– A new cross-platform application by Intel Security that uses personal factors like the face, device or fingerprint to make logging-in easier and safer.

In addition to introducing new platforms to accelerate PC demand, Intel , in the past year has launched a number products and initiatives with different fashion, fitness and lifestyle brands, to accelerate its presence in wearables. These include the acquisition of Basis Science, the partnership with renowned rapper 50 Cent to create fitness-tracking headphones, the collaboration with Opening Ceremony to launch a fashion accessory MICA, as well as the partnership with Fossil and Luxottica. Having missed out on the mobile revolution, the company is determined to be an early entrant in wearable technology, which is touted as the next big wave in computing.

The wearable device market is still at a nascent stage and is quite competitive with everyone from Qualcomm (NASDAQ:QCOM), Texas Instruments, Broadcom (NASDAQ:BRCM) to startups vying to grab a share of this fast growing market. Juniper Research estimates the wearable computing device shipments will increase from 15 million units in 2013 to 150 million units by 2018. ABI Research forecast the figure to cross 450 million units during the same period. [1]

Intel currently derives less than 10% of its valuation and approximately 5% of its revenue from the Internet-of-Things segment. We believe that accelerating its entry in wearables augurs well for Intel’s long term growth potential, and estimate the segment to account for approximately 10% of Intel’s total revenue by the end of our forecast period.

Our price estimate of $34 for Intel is slightly below the current market price.

See our complete analysis for Intel

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Notes:
  1. Broadcom Targets Wearable Tech Role, TechWeek Europe, August 30, 2013 []