Intel has announced a new chip design they say will revolutionize the industry. And the announcement is most likely a response to Arm Holdings of the UK as they try and take the mobile processing market share from Intel. Intel has a very large share of the processor market, which is just about 80 percent, but their stake in the mobile market is nowhere near as high. Some say that its’ because Intel has yet to make a power friendly version of a micro processor for the mobile market.
Arm Holdings is also looking to take away a little more of Intel’s PC market shares. Arm holdings are predicted to have a market share close to 13 percent by the year 2015. Companies like Apple have already been using the Arm Holdings processor in the iPhone and iPad because of the power consumption, so why wouldn’t any company see the advantage of what Arm Holding has to offer in the PC market?
The new chip design mentioned by Intel, would cut the power consumption in half, which is a big deal with you are talking about mobile devices here. This would be a huge breakthrough for the mobile industry and if Intel wants to keep a hold on the market share, they will make sure this is marketed just right. These micro processors are nothing to sneeze at, literally. If you were to sneeze near one of these things you could shoot it straight across the room. The new processors are reported to only be 22 billionths of a mater and the production of these units should start this year.
Once Intel gets a handle on how they want to take market share in the mobile industry, companies like Apple will surely take a step back and review what Intel microprocessors has to offer. If all goes well, Apple might start using the new chip design as early as 2012.
If stock prices are any indicator whether Arm Holdings has a chance against Intel and their chips, it wasn’t looking very good for them once Intel made the announcement. Arm Holdings stock prices dropped about seven percent with an early rebound the next day. The stock did rebound on Thursday, but only with a gain of about 3 percent. That still leaves about 4 percent of their initial act by Arm Holdings to gain back sooner than later.
