Chip-making giant ARM has claimed that despite stiff competition from Intel, it expects to establish a significant footing in the lucrative PC and server markets. Intel, of course, has a strong hold on the smartphone market and has significant financial muscle to call on.
However, Warren East, the Chief Executive Officer of ARM Holdings, explained that the firm has good reason to feel optimistic about its medium to long-term outlook. "Companies making processors based on ARM cores will take between ten to 20 per cent of the notebook PC market in 2014 or 2015," he commented. "That would be much higher penetration than Intel would make into the smartphone market."
ARM and Intel have been the most prominent forces in the mobile phone and PC markets for a number of years now. However, they both intend to broaden their horizons and move in on the turf of rival firms. They are not in direct competition with each other, though, as Intel supplies chips while ARM licences the processor core to chip-making partners.
Mr East speculated that Intel will enjoy a reasonable level of success in the smartphone market, but argued that its penetration rate will peak at around ten per cent. "It's going to be quite hard for Intel to be much more than just one of several players. But they'll be a perfectly credible player," Mr East remarked.
He observed that ARM has a distinct advantage in that its processors will be lower in cost than those from Intel. Consequently, Mr East added, ARM can rightly expect to see its market share steadily increase over the coming years.