Could the Chip Battle for Tablets Get Graphic?
Which chipmakers could win or lose the motherboard grab for tablet space?
Ever since the release of Apple's (AAPL) iPad in April 2010, gadget lovers have been buzzing about tablets. This new category of electronic devices is composed essentially of hybrids between a PC and a smartphone. At this month's Consumer Electronics Show (CES), a host of upcoming tablets stole the spotlight, and the kings and queens of the dance were the semiconductor firms that make the processors which will power these devices. Here's a quick look at the chipmakers at the center of the burgeoning tablet hype.
Tablets: The Latest Battleground in Tech
There's no question that firms in both the PC and handset supply chains are on a collision course in the tablet space. These devices hope to combine the processing power and productivity functions of a low-end PC with the all-day battery lives and touch screen interfaces seen in today's most popular smartphones. In the chip space, the battle comes down to Intel (INTC) and its x86 processors versus ARM Holdings (ARMH) and its line of Cortex architectures used in the mobile space. There has traditionally been a clear line of demarcation between these two firms. Intel rules the PC processor business because of its manufacturing expertise, massive research-and-development staff, and well-publicized "Wintel" alliance with Microsoft (MSFT), the predominant PC operating system. Meanwhile, ARM-based processors are prevalent in the handset industry because these chips are ultra-low power, allowing cell phones to run for days, rather than the 2-to-4 hour battery lives within laptops. ARM essentially develops the architecture for these low power chips, while today's leading chipmakers, like Qualcomm (QCOM), Texas Instruments (TXN) and Nvidia (NV)DA, expand upon these blueprints to develop their proprietary handset processors. The tablet market is a one-horse race at the moment, with the iPad in the lead, and ARM as the jockey along for the ride, as the iPad uses an ARM-based A4 processor developed by Apple, and manufactured by Samsung. Yet, a host of PC and handset competitors are working on the latest iPad killer, and most of the processors in these tablets are ARM-based as well.
Brian Colello does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.