Why Intel's Wearable Business Is Struggling?

To most of the customers, the Intel wearable device range Basis is not well known. And now the company is reportedly discontinuing its wearable products, so people will no longer have the opportunity to get to know this brand.

Intel's Basis

According to Tech Times, Intel purchased a company called Basis in 2014, when the wearable device technology started to emerge on the market. The company acquired by Intel back in 2014 is a startup developing products in the fitness tracker segment.

The acquisition of Basis has been integrated into Intel's New Devices Group (NDG) that was conceived as a new unit designed to support Intel's wearable ambition. Intel did not stop with Basis' acquisition. The purchase was followed by the takeover of Recon, a company active in the business of smart eyewear manufacture.

Intel Wearable Products

During its short existence, the NDG was able to several wearable devices such as the Basis Peak and Basis Titanium. However, after consumers reported overheating issues with Basis Peak, the device was immediately pulled out.

As consequence of the Basis Peak issue Intel halted the sale of the gadget permanently, unlike Samsung that immediately offered to replace the exploding Note 7 devices. The company has also announced that it will stop developing the proprietary software for Peak. A notification at Basis website announces customers that Intel is shutting down service on Dec. 31, on all its devices and apps. Other smart watches produces by Intel's wearable department could be also phased out.

Intel's Wearable Segment Exit

It seems that the wearable challenges at NDG are not only related to one faulty device. The company did not make any new announcement about the Basis range and there is no longer any word about Recon. The launch of a new smartwatch called Basis Ruby has been also stopped.

According to insider sources, will be backing away from the wearable segment. It seems that the company is leaving the wearable niche for good. The main reason is Intel's displeasure with the entire NDG unit.

Intel's wearable division is facing massive layoffs and the management has already informed affected employees that they will stop working by the end of this year. But, according to Engadget, the company informed the publication that has no intentions to of getting out of wearables and, in fact, it has "several products" in the pipeline.

Among the rumored new wearables from Intel is the Basis Ruby smartwatch. The device is expected to have heart rate monitor and sleep tracking features. The wearable gadget will have a compact design and the quality of its strap seems to indicate that it is aimed at the mass market segment.

Ruby may come with a new version of the Basis software. In case that Intel is indeed going to launch the wearable, it has good chances to gain a bit of traction in the market. The Ruby smartwatch would give NDG some respite. It remains to be seen if the device will ever see the green light, or Intel will choose to totally pull out of the wearable market segment.

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