Intel to Apple: We Will Not Be Ignored!
Mobile chip newbie Intel (NASDAQ:INTC) says it will focus on making better products to ensure companies like Apple (NASDAQ:AAPL) can’t ignore it. Intel, which only entered the smartphone market last month, has plans to quickly release chips that improve device performance and power efficiency, according to chief executive Paul Otellini. Apple currently uses Intel processors in its notebook and desktop computers, but has chips of Intel rival ARM (NASDAQ:ARMH) in the iPhone and the iPad.
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“Our job is to insure our silicon is so compelling, in terms of running the Mac better or being a better iPad device, that as they make those decisions they can’t ignore us,” Otellini said.
Intel has dominated the server and personal chip market for years and the company is hoping it can use its size and those developmental strengths to support manufacturing capabilities for mobile device chips as qualities its rivals can’t match.
Intel’s mobile processor designs are based on the same x86 processor architecture that dominates the notebook business. “What the process technology does is gives us better performance, at better power at better size,” Intel’s Mike Bell said. “We think this is a fundamental advantage that we have.”
The company is also using its expertise in the open-source Linux operating system to improve the mobile software for its chips and has devoted as many as 1200 engineers to work with Google (NASDAQ:GOOG) on the Android operating system. Earlier this year, Motorola Mobility (NASDAQ:MMI) and Lenovo had announced plans to build phones using Intel’s mobile processors.
“A year ago there was no one who was not an Intel employee who thought Intel stood a chance in this business,” Otellini said. “And now you’re asking what our market share goals are.”
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