Intel Vulnerable as Consumers Shift to Phones From PCs to Browse the Web
Intel Vulnerable as Consumers Shift to Phones From PCs to Browse the Web Intel Vulnerable as Consumers Shift to Phones to Browse the Web Share Business ExchangeTwitterFacebook| Email | Print | A A A By Ian King
Jan. 6 (Bloomberg) -- Intel Corp.’s position as the gateway to the Internet will come under attack in 2010 as more consumers start going online via phones, tablets, e-readers and scaled- down laptops.
Qualcomm Inc., Marvell Technology Group Ltd. and Freescale Semiconductor Inc. are among the chipmakers demonstrating new kinds of Internet devices at this week’s Consumer Electronics Show in Las Vegas. Their goal: persuade consumers to ditch their Intel-powered personal computers as the primary way of going online.
“The next billion users that are going to connect to the Web aren’t going to be connected by the PC,” said Henri Richard, head of sales at Austin, Texas-based Freescale. “It’s going to be a multitude of devices.”
Intel, the world’s largest chipmaker, makes more than 80 percent of PC processors -- the brains of computers. It aims to use its Atom product, which runs small laptops known as netbooks, to break into chips for wireless devices, a market IDC estimates will increase 14 percent to more than $46 billion in 2010. Its rivals are heading in the other direction: using phone chips to woo users of PCs and consumer electronics.
While the PC will remain the main way for people to go online, portable devices are chipping away at that dominance -- with mobile phones leading the charge. Qualcomm, Freescale, Marvell and Texas Instruments Inc. are using chip technology developed by ARM Holdings Plc.
Reaching a Billion
By 2013, the number of phones regularly being used to access the Web will exceed 1 billion for the first time, a fivefold increase from 2006, according to Framingham, Massachusetts-based IDC. Over the same time period, the number of Internet-connected PCs will rise to 1.6 billion from 754 million, according to IDC.
“The push right now is to connect everyone and everything, and that’s why we’re seeing a plethora of devices,” said Jim McGregor, an analyst at Scottsdale, Arizona-based research firm In-Stat. “In terms of sheer numbers and usability, you can’t compete with a handheld. Everything migrates to a mobile.”
The Consumer Electronics Show will reveal which phone-chip makers have made progress persuading computer and consumer- electronics companies to use their components. Qualcomm, the world’s largest maker of phone chips, will show off a so-called smartbook made by Lenovo Group Ltd., China’s biggest computer maker.
That device will run on San Diego-based Qualcomm’s Snapdragon chip. Freescale will demonstrate similar small laptops based on its products, and Marvell will introduce products based on a new range of faster processors.
Apple Inc., maker of the iPhone, also is planning to unveil a tablet computer this month, a person familiar with the matter said this week. Yesterday, Google Inc. introduced a touch-screen phone called the Nexus One.
It makes more sense to use smartphone technology to build tablets, e-readers and handheld computers, rather than relying on PC chips, said Sehat Sutardja, chief executive officer of Santa Clara, California-based Marvell. Smartphones offer the right mix of processing speed, low power consumption and touch screens, making them easy to convert into Internet devices, he said.
“A touch-screen smartphone is actually a small tablet PC,” said Sutardja, whose company supplies the main chip for Research In Motion Ltd.’s Blackberry. “The time for tablet devices is now.”
Intel is also vulnerable to Netbooks and Nettop computers with it's own Atom N270 and N330 processors. Why would consumers pay $600-900 for a high end system when they really just need a basic budget $300 system to surf the web? The computer I'm using right now has an Intel N330 dual core 1.6 ghz processor and it works great. Built it myself for only $200 including shipping and FREE Open Source Linux.
Now the AMD is entering the Netbook processor market too. An AMD Netbook with Linux would not be restricted by WinTel's 'Maximum System Requirements' or licensing. I'll take 2 please.
But of course Intel also has the upside potential of the new markets as well.
Intel currently has almost 0 market share in phone chips. Nvidia and Arm like to talk big how they will attack Intel's CPU market but never mention that Intel is going to attack their markets.
When you start with 0 market share in phone chips and GPUs, you can profit huge by simply taking 25% market share of the phone markets. Intel will attack and that is why the FTC is trying to stop Intel.
If Intel were a worthless pussy in the phone market, The FTC would not be so upset.
Intel will crush Nvidia and Arm in the next 4 years.
Of course AMD loves it because they too want Arm and Nvidia crushed.