Will ARM become Intel’s biggest rival?

Who will be Intel’s biggest competitors in the years ahead?

Intel may still be primarily battling with long-established rivals AMD and IBM, but according to a report by In-Stat, newer competitors will pose a different challenge to Intel in the near future.  

Two names in the frame could be VIA and ARM.

The big factor is the move away from desktop PCs to mobile devices. “Due to anticipated slower growth and lower pricing in the PC market, Intel’s key base since the 1980s, Intel is looking to new markets for growth opportunities,” points out In-Stat.

”Intel’s CEO, Paul Otellini, identified ultra-mobile PCs (UMPCs)/Mobile Internet Devices (MIDs) as key targets (allegedly worth $10bn each),” said Jim McGregor, In-Stat Principal Analyst.

“Intel’s expansion into emerging form factors, such as MIDs, with low-power products expands its list of competitors, particularly those in the ARM processor camp,” said McGregor.

Factors In-Stat identified in the processor market include: AMD’s shadowing of Intel’s move into emerging form factors with accelerated processing units and IBM’s pushing of the POWER processor architecture for servers and consumer electronics.

However, In-Stat believes IBM may exit the semiconductor business within a decade due to high fab costs, competition, and changing business models.

“Intel will maintain its leadership position in computing, but faces competition and difficulty overcoming other barriers in consumer electronics,” said In-Stat.

The research is called “Intel Competitor Line-up: Challenges to the Industry Leader”