Warren East, the chief executive of British microchip firm ARM, in an interview with the Telegraph claimed Intel to be a ?niche player? in future. He forecasted his firm to be the ?most influential? microchip firm in the world.
Though Intel has been very successful and its revenues are 100 times greater than ARM?s, many tech analysts believe the underdog chipmaker’s business model is the best ?economic offering?.
Intel acts amongst one of the licensee to ARM?s designs and the technology for the smartphones and tablets. ARM licenses its design to some of the major chip manufacturers, including Intel, and is not into manufacturing chips. Intel leads the market for microchips in PCs, which is becoming stagnant. Sometime back, ARM announced a partnership with Google to tailor new smartphone microchips for the Android operating system.
The Telegraph also reported that analysts at International Data Corporation, the premier global provider of market intelligence,?have brought down PC sales growth forecast to just 2.8 per cent labelling the Western market as stagnant. In contrast, IDC expects the sales of tablets and smartphones to grow in huge ratio in comparison to that of last year.
East declared Intel to be successful in what is becoming a niche market but struggling to break the British mobile computing firm’s strangehold. ARM?s technology is still being used by almost 95% of handsets.
ARM is currently targeting the market for ?embedded systems? wherein the simpler computers are used in domestic appliances, cars and other specialized applications. Enthusiasm also has a grip on the tech player’s mind for ARM?s Cortex ? A15, which is expected to be used in future phones from Apple, Samsung and their rivals. ARM recently unveiled technical details of ARMv8 architecture, its first 64-bit instruction set.?The new architecture is currently available to be licensed to its partners.
The ARM CEO expressed his firm belief in the latest chip and claimed it is powerful enough to conquer Intel?s market in laptop and server microchips. He described ARM as the ?last man standing? in silicon chips industry as it is the only major British technology firm competing on the global stage.
(Written by Hina Agarwal; Edited by Moign Khawaja)