Intel: Samsung’s Secret Weapon Against Apple
Samsung Electronics is poised to give Intel Corp (NASDAQ:INTC) its first big break in a while, as a Reuters report illuminates that the company has chosen an Intel Corp process to power one of its new Android tablets.
Intel’s Clover Trail + mobile chip will power at least one version of the Galaxy Tab 3 10.1., a shift from Samsung’s typical supplier. While the Asian electronics giant uses Intel processors for its line of Microsoft Windows “ATIV” tablets, it previously employed UK’s ARM Holdings to supply it with chips for its larger market of Android devices.
Although Intel has always been at the forefront of the personal computer industry, the PC-based market has taken a significant hit from the thriving tablet industry. Intel has struggled to keep up with the times and compete with chip manufacturers who design for makers of smartphones and tablets. The company reacted slowly to the recent smartphone and tablet explosion, and is now paying the price as other players, especially ARM, are dominating the market as they sell their technology to Qualcomm Inc (NASDAQ:QCOM), Samsung and Nvidia (NASDAQ:NVDA). The market is estimated to hit $25 billion by 2016, according to Reuters.
But Intel is slowly making a recovery. Its new CEO Brian Krzanich recently launched a company-wide reorganization and plans to expand the chipmaker’s footprint in mobile devices. It is hastening to adapt its PC chips to work more efficiently in mobile devices, making them more appealing to the top players in the smartphone and tablet foot race, Apple Inc. (NASDAQ:AAPL) and Samsung. It won a small victory last year when an Intel mobile processor was used in a version of Motorola’s (NYSE:MSI) Razr smartphone.
Intel has yet to launch chips capable of supporting high-speed Long Term Evolution Technology, putting it at a major disadvantage as the technology is quickly becoming the standard.
Samsung is expected to unveil its new ATIV tablets using Intel chips at a June 20 event in London, but it is unclear if the Galaxy Tab will also be debuted at the same event.