Amid the buzz that Basis is in talks with
) and others for an acquisition, speculations are rife that
) has outbidden the other contenders in an auction sale to
acquire Basis for a reported sum of about $100 million.
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With the acquisition of the technology and hardware of Basis,
Intel will gain the resources to target the hottest electronic
gadgets- wearables. It will also gain the talent that has
invented one of the most effective and far-reaching wearables to
At CES 2014, Intel's entire presentation revolved around
wearables and perceptual computing. Intel revealed a variety of
gadgets and wearable devices powered by the Quark processor. It
also displayed smart earbuds to record heart rate patterns
through the headphone jack. It also announced its plans to launch
a GPS integrated smartwatch.
The latest move confirms the chipmaker's intent to design a
smartwatch. Intel can now gain traction in the smartwatch space
with the acquired technology.
Basis, a privately held company, is financed by DCM, Mayfield
Fund, and Norwest Venture Partners. It has designed a smartwatch,
called the world's most advanced health tracker, and an online
personal dashboard to help users lead a healthy lifestyle by
including good habits in their everyday routine.
Currently, Basis' product has secured 7% of the market while the
likes of Fitbit and Jawbone hold 58% and 21% share, respectively.
Intel is visibly looking at the wearable and embedded devices
space. The chipmakers first wearable device is called Jarvis, a
Bluetooth headset, which enables the user to save day to day
information by just issuing commands.
It recently announced the Make it Wearable challenge where
participants have to submit one-minute videos of new designs for
Given its recent mobile push, Intel will be increasingly pitted
against companies like
). Additionally, competition from traditional peers
Advanced Micro Devices
) is not expected to alleviate.
Currently, Intel holds a Zacks Rank #3 (Hold).