ARM loses £720m as battle with Intel intensifies

 

In reaction to the news that rival Intel would be supplying the processors for Samsung's new Galaxy tablets shares in the Cambridge-based chip-designers ARM Holdings fell by more than 7 per cent yesterday, temporarily knocking £1bn of the group's £13.6bn market capitalisation,.

The shares rallied towards the end of the day, but the total drop remained more than 5.3 per cent, a loss valued at over £720m for the company.

The news comes as both ARM and Intel continue to ramp up their fight for to supply chips for mobile devices. Both companies unveiled new chips at Computex yesterday engineered for mobile devices, traditionally ARM's territory.

ARM released three new chips, including the Cortex-A12 (aimed at mid-range smartphones and offering what ARM claims is a 40 per cent performance improvement on earlier versions) and the Mali-V500, a graphics processing video that the makers claim can intercept and block pirated video.

The mid-range market for smartphones is set to be the next greatest point of expansion for the mobile-computing industry, with 580 million mid-range smartphones and tablets forecast to be sold in 2015.

ARM does not manufacture any of its chip cores (the heart of a processor) but licenses its designs to companies such as Qualcomm and Apple. These designs currently power a whole range of top-end smartphones, including the Blackberry Z10, the HTC One and the Samsung Galaxy S3.

Intel has traditionally focused on the PC and laptop market, but new chips unveiled at Computex are firmly aimed at mobile devices, with lower power-consumption meaning longer battery life and cooler devices.

As the market for traditional desktop computers declines, Intel has to shift more of its operations over to newer computing forms to remain profitable.

The market for tablets and laptops is continuing to diversify as manufacturers search for the latest successful form. Asus also announced yesterday a 'three-in-one' device that could transform between tablet and laptop and that runs both Windows 8 and the Android operating system (powered by Intel chips).

Speaking at Computex ARM claimed that their chips still offer better performance per watt for mobile devices:  "Our analysis shows that we're more than a generation ahead," said Noel Hurley, the vice president of marketing and strategy, "We've maintained out leadership in this place."

Although only Samsung have so far confirmed they will be using Intel's chips for tablets, further announcements at Computex will undoubtedly continue to swing this battle for mobile-supremacy back and forth.

Life and Style
food + drink
Life and Style
love + sex A new study has revealed the average size - but does that leave men outside the 'normal' range being thought of as 'abnormal'?
News
UK Border Control
i100
Arts and Entertainment
TV
Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    SThree: Trainee Recruitment Consultant

    £18000 - £23000 per annum + OTE: SThree: SThree are a global FTSE 250 business...

    SThree: Trainee Recruitment Consultant

    £18000 - £23000 per annum + OTE: SThree: SThree are a global FTSE 250 business...

    SThree: Trainee Recuitment Consultant

    £18000 - £23000 per annum + OTE: SThree: SThree are a global FTSE 250 business...

    Recruitment Genius: Infrastructure Architect

    £35000 - £45000 per annum: Recruitment Genius: An Infrastructure Architect is ...

    Day In a Page

    Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

    Climate change key in Syrian conflict

    And it will trigger more war in future
    How I outwitted the Gestapo

    How I outwitted the Gestapo

    My life as a Jew in wartime Berlin
    The nation's favourite animal revealed

    The nation's favourite animal revealed

    Women like cuddly creatures whilst men like creepy-crawlies
    Is this the way to get young people to vote?

    Getting young people to vote

    From #VOTESELFISH to Bite the Ballot
    Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

    Poldark star Heida Reed

    'I don't think a single bodice gets ripped'
    The difference between America and Israel? There isn’t one

    The difference between America and Israel? There isn’t one

    Netanyahu knows he can get away with anything in America, says Robert Fisk
    Families clubbing together to build their own affordable accommodation

    Do It Yourself approach to securing a new house

    Community land trusts marking a new trend for taking the initiative away from developers
    Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

    David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

    The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
    Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

    Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

    Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
    With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

    Money, corruption and drugs

    The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
    America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

    150 years after it was outlawed...

    ... America's first slavery museum is established in Louisiana
    Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

    Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

    The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
    Tony Oursler on exploring our uneasy relationship with technology with his new show

    You won't believe your eyes

    Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
    Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

    Moores must go. He should never have been brought back to fail again

    The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
    War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

    The battle for Mosul will unleash 'a million refugees'

    Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn