Apple and Intel Signal New Era for Chip Makers

Apple (NASDAQ:AAPL) is expected to surpass Intel (NASDAQ:INTC) as the world’s largest mobile chip company by the end of the year.

Apple is currently the world’s second largest mobile chip company, and is showing signs of strong upward growth. Strong sales of the iPhone and the iPad and decline of the PC market are reasons for Apple’s mobile processor business’s advancement in the industry.

In 2011, Apple shipped 176 million chips in its iOS devices, bringing in 13.5 percent of the market share. Intel shipped 181 million chips, snagging 13.9 percent market share. Apple is steadily closing the 0.4 percent gap on Intel.

Intel is certainly falling behind because it lacks a presence in the smartphone market. Intel chips are not used in smartphones at all. The chip maker is losing ground to ARM Holdings (NASDAQ:ARMH), which creates chips for various smartphones and smartphone makers.

Apple is expected to claim a decent lead and pass Intel this year due to the strong sales of the new iPad and the expected successor to the iPhone 4S, likely to be released later this year.

To contact the reporter on this story: Diallah Haidar at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com