ARM Brings Challenges To Intel

Published:2011/3/22 3:06:00 Author:Li xiao na From:SeekIC

The scale of ARM is small, but it has overturned the entire chip industry and brought the severe challenges to Intel. The ARM structure has become the standard in the cell phone and tablet computer field, which is also applied in the other devices, such as digital camera and hard disks. The market share of ARM reaches ninety percent, and its stock price has increased by two times. The CEO of Apple has shown the iPad2 on March the second. iPad2 applies the ARM technology, and its speed is two times of the first generation, the duration of the battery is ten hours.

Expert in HIS iSuppli maintains that the size of the smart phones will be same of computers if they do not use the ARM. The duration time is very important, which is the reason of the ARM’s success. Intel’s chip has high performance, which is suitable for the personal computer. But its power consumption is too high when compared with the ARM construction; therefore, they are not suitable for the other devices driven by the battery. Intel is still the overlord in the PC and server market, but the cell phone market increases more quickly. It is predicated that the shipment of smart phone will increase by forty percent in this year, which will exceed the personal computer. Besides, ipad has nibbled the low-end tablet computer, which also influences the increasing potential of Intel. Although Intel has gained so much by producing the personal computer chip, its stock price is similar with the one in several years before.

Intel also wants to enter the cell phone market. It plans to release a chip which can match with the ARM in performance and power consumption. When the movable devices become the computer, they need the more powerful chip. Performance is the strong point of Intel, and they will keep the advantage continuously. However, whether the new chip can be applied by the manufacturer is a question. The device manufacturers can make the factories of ARM structure chip compete with each other, thus the purchasing price will reduce. Persuading the developers to develop the software for their platform is another obstacle of Intel. Intel has the richer resource. The commercial model of ARM makes its scales small, and it only charges five percent of the chip selling price. It yearly income is 631 million US dollars, while the yearly achievement of Intel is 44 billion US dollars. The related integrated circuit is KTD2854.

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