Well, that’s one way to jump into one of the industry’s hottest market! Intel has apparently won the Basis auction (that they allegedly started) for close to $150 million. If this sound paltry to you in the wake of all the $Billion social buy-ups lately that’s OK, but it’s an interesting move for Intel.
Basis makes a wristwatch health tracker that I’ve personally tried. The device is pretty cool but it’s biggest failing is that it doesn’t do particularly well when you EXERCISE. It’s labeled as being for the “other 23 hours” of your life. Basis holds roughly 7% of the market versus competitor Jawbone’s 21 percent. Intel has been vocal about wearables this year , so it’s a safe bet that this is an attempt to further its standing in the space.
Previous rumors had Google looking at Basis as well, but offering far less than the $150M price tag that Intel got. Intel likely doesn’t have aspirations to compete in the consumer electronic marketplace; the company wants to sell it’s chips. But by acquiring Basis, it gains access to a team that has built one of the most powerful and comprehensive wearables to date, which it then can set upon its own designs and power.