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
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: Windows 3rd Line System Administrator

    £35000 - £39000 per annum: Recruitment Genius: This is an exciting opportunity...

    Recruitment Genius: New Business Client Manager - OTE £35,000

    £18000 - £35000 per annum: Recruitment Genius: This global technology company ...

    Guru Careers: Technical Director / Digital Director / Development Director

    £75 - 85k + Benefits: Guru Careers: A Technical Director / Digital Director / ...

    Guru Careers: Graduate Database Administrator / Junior DBA

    £20 - 25k: Guru Careers: A Graduate Database Administrator / Junior DBA is nee...

    Day In a Page

    Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

    US betrayal of old ally brings limited reward

    Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
    VIPs gather for opening of second Suez Canal - but doubts linger over security

    'A gift from Egypt to the rest of the world'

    VIPs gather for opening of second Suez Canal - but is it really needed?
    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

    Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
    The male menopause and intimations of mortality

    Aches, pains and an inkling of mortality

    So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
    Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

    'How can I possibly be on the list with these writers I have idolised?'

    Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
    Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

    Bettany Hughes interview

    The historian on how Socrates would have solved Greece's problems
    Art of the state: Pyongyang propaganda posters to be exhibited in China

    Art of the state

    Pyongyang propaganda posters to be exhibited in China
    Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

    Vegetarian food gets a makeover

    Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
    The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

    The haunting of Shirley Jackson

    Was the gothic author's life really as bleak as her fiction?
    Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

    Bill Granger's seaside-inspired recipes

    These dishes are so easy to make, our chef is almost embarrassed to call them recipes
    Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

    Tourists are limp, leaderless and distinctly UnAustralian

    A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
    Blairites be warned, this could be the moment Labour turns into Syriza

    Andrew Grice: Inside Westminster

    Blairites be warned, this could be the moment Labour turns into Syriza
    HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

    The mystery of Britain's worst naval disaster is finally solved - 271 years later

    Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
    Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

    'I saw people so injured you couldn't tell if they were dead or alive'

    Nagasaki survivors on why Japan must not abandon its post-war pacifism
    Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

    The voter Obama tried hardest to keep onside

    Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen