Apple could be top mobile processor maker by end of 2012
Apple's use of proprietary ARM-based processors in its iDevice product lines could help the company replace Intel as the world's largest mobile chip maker by the end of the year.
A forthcoming study from mobile technology research firm In-Stat claims that Apple will overtake Intel in the mobile processor business if smartphone and tablet sales continue to grow, and the change will likely take place before 2013, reports IDG News Service.
At the end of 2011, the iPhone maker shipped roughly 176 million mobile processors accounting for 13.5 percent of the market and trailed Intel by only 5 million units, which represents a narrow 0.4 percent difference in market share.
"Apple's continued success of the iPhone and iPad, as well as the stronger growth rates of the smartphone and tablet markets than PCs" will help the company catch Intel, said In-Stat Chief Technology Strategist Jim McGregor.
The study tallied the processors found in a multitude of mobile devices, including the iPod touch, handheld gaming systems like Sony's PlayStation Vita, and e-readers. Not included were desktop computers and servers.
Analysts predict that the growing tablet market, which by some estimates will reach 326 million shipments in 2015, is poised to surpass the ailing PC market.
Apple's ARM-based A-series processors are already at the heart of every iDevice sold, while Intel has only just begun to introduce its Atom chips in smartphones and tablets. The A4, dual- and single-core A5 and A5X make up the current offerings from Apple. All are designed by the Cupertino, Calif., company and manufactured by Samsung.
"The more successful Apple is, the more credibility it adds to the entire ARM camp and the more competitive the ARM camp becomes as a whole," McGregor said.
[ View article on AppleInsider ]
Comments
Good I kept last week to my stocks. (Not that I actually intended to sell them)
Apple's use of proprietary ARM-based processors in its iDevice product lines could help the company replace Intel as the world's largest mobile chip maker by the end of the year.
More accurate to say world's largest mobile chip user. The largest maker will be Samsung. They make chips used in a lot of other cellphones, too.
More accurate to say world's largest mobile chip user. The largest maker will be Samsung. They make chips used in a lot of other cellphones, too.
I agree.
I've always thought that Apple should start making some of its own parts, especially processors, but I think that will never happen with Tim Cook at the helm. It could end up being Apple's Achilles heel.
More accurate to say world's largest mobile chip user. The largest maker will be Samsung. They make chips used in a lot of other cellphones, too.
No, the article is correct. Apple designed chips are currently manufactured by Samsung, but that could change... They are in fact Apple's chips. You're taking the word 'make' too literally, when it's obvious that's not what the author meant.
I agree.
I've always thought that Apple should start making some of its own parts, especially processors, but I think that will never happen with Tim Cook at the helm. It could end up being Apple's Achilles heel.
How exactly? By allowing others to make these parts, Apple can more easily take advantage of newer advances in manufacturing without the cost of re-tooling. They can remain nimble by moving to another supplier/manufacturer. It's much more cost effective to be able to work with a company that is already set up for building these parts and working with them to build to your specifications. Especially companies that are extremely knowledgable in those appropriate areas.
I know some people worry about Samsung dumping Apple as a client, but that would be monumentally stupid, and NO company would ever consider such losses. Apple is a multi-billion dollar client, probably Samsung's largest client/customer. There are many, many other manufacturers that would love to have Apple as a client. Samsung knows that and so does Apple.
Well tegra has potential but atom chips should ie a horrible death. Apple will be the biggest computer maker this year because of theipad and will pass intel with iPad 3 and iPhone 5 as the biggest chip maker this year also. By 2013-14 will be worth 1 trillion dollars...
I agree.
I've always thought that Apple should start making some of its own parts, especially processors, but I think that will never happen with Tim Cook at the helm. It could end up being Apple's Achilles heel.
As mjtomlin points out Samsung may be the current (and future) fabricator contracted by Apple but they are still Apple's SoCs.
By that same token the IP Apple licensed from ARM, Img Tech, et al. to build their SoC makes that the property of those companies. If I asked who makes the PowerVR the correct answer would be Imagination Tech, not Apple, not Samsung, not Robots, not the actual Img Tech engineers.
Another example — and perhaps evidence that it's dinner time — If I were eating a juicy burger and you asked me who made it you'd think I'm a smart ass if I replied with 'The cook, but I didn't get their name" when it's clear that you mean the restaurant that hired the cook to physically prepare their food. You also wouldn't expect me to reply with "When a cow and bull love each other very much..."
I agree.
I've always thought that Apple should start making some of its own parts, especially processors, but I think that will never happen with Tim Cook at the helm. It could end up being Apple's Achilles heel.
Na.... they should stick to what they do best... designing, marketing and creating great user experiences.
Let other companies who are the best in their fields to do what they do best... manufacturing, fabrication, etc.
The architect does not hammer nails, pour concrete or pull electrical cable...
Na.... they should stick to what they do best... designing, marketing and creating great user experiences.
Let other companies who are the best in their fields to do what they do best... manufacturing, fabrication, etc.
The architect does not hammer nails, pour concrete or pull electrical cable...
Your analogy is flawed.
The architect also does not usually sell the home/building he/she is designing.
Let's see how well the architect does when they actually own the building they are designing and then finds out the other guys are using better materials that aren't available to him or the materials don't meet the standards he needs for his design.
Apple is designer, contractor and seller.
Apple designed the A4?
Clearly. It is called the Apple A4, has an Apple logo on it, and was stated outright they designed it.
Now that isn't to say that Apple didn't license Cortex-A8 from ARM, PowerVR from Img Tech, purchase RAM from Samsung (it's a PoP), and other technologies but the final design is theres. No one else can use that chip. Samsung can't start manufacturing Apple's chips and then put it in their products.
Here's an interesting AI article 1.5 years before Apple released the original iPad with the A4 chip. Note that 6 months before this info about a new licensee Apple had purchased PA Semi. Not exactly something you do if you're not designing your own chips.
Apple designed the A4?
Yes. Apple designs their own AX chips based on the ARM architecture. They outsource the manufacturing to Samsung. In similar comparison, Apple designs the iPhone while Foxconn assembles it.
Your analogy is flawed.
The architect also does not usually sell the home/building he/she is designing.
Let's see how well the architect does when they actually own the building they are designing and then finds out the other guys are using better materials that aren't available to him or the materials don't meet the standards he needs for his design.
Apple is designer, contractor and seller.
I wasn't trying to make a perfect analogy...
I was merely pointing out that Apple is good at what they do... and they contract with companies who are good at what they do.
You're right... Apple is the designer, contractor and seller... and they buy parts and services from other companies too.
And they're pretty darn successful at it
Who knows what Apple could do if they owned everything end-to-end. But I don't think Apple wants to deal with mining aluminum ore, manufacturing camera sensors or making glass.
That's better left to those who do that already... dontcha think?
I wasn't trying to make a perfect analogy...
I was merely pointing out that Apple is good at what they do... and they contract with companies who are good at what they do.
You're right... Apple is the designer, contractor and seller... and they buy parts and services from other companies too.
And they're pretty darn successful at it
Who knows what Apple could do if they owned everything end-to-end. But I don't think Apple wants to deal with mining aluminum ore, manufacturing camera sensors or making glass.
That's better left to those who do that already... dontcha think?
No, I don't think that way. Apple aint the company it was 10 years ago, or 5 years ago or even 2 years ago. Apple's growth is exploding and I believe that Apple's needs are beginning to outstrip other company's abilities to supply them with the consistent yields that Apple requires.
I believe that Apple has to acquire some manufacturing ability in order to move to the next phase of its business life. You don't hire a kindergarten teacher to teach grade 5 math and you don't hire that teacher to teach grade 10 biology etc. etc.
Apple is moving towards a degree beyond Phd, and it appears there isn't anyone left that can adequately teach them.
In similar comparison, Apple designs the iPhone while Foxconn assembles it.
Samsung jacked up the price from $14 to $23 per processor. How much does Foxconn charge to make the ipad?
I believe that Apple has to acquire some manufacturing ability in order to move to the next phase of its business life.
Actually, that is one of the few areas of production that Apple could create in the US due to it being mostly automated. It also affords them added security and secrecy which we know that they adore.