Is Apple’s revolutionary A4-powered iPad killing Intel?

invisibleSHIELD case for iPad“Intel was clobbered after Barclays Capital said Apple’s iPad is eating away at sales of PCs and netbooks that use its chips,” John Melloy reports for CNBC.

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“‘The iPad’s tablet momentum has pressured the broader netbook and lower-end notebook arena,’ wrote Tim Luke, semiconductor analyst for Barclays,” Melloy reports. “Intel, the worst performer in the Dow Jones Industrial Average Wednesday, is now down for the year, while Apple is up 23 percent. The two stocks began to diverge right on cue in April, when Apple released the iPad that uses a self-designed chip called the ‘A4.'”

Melloy reports, “The analyst, who includes a chart in his report showing Intel’s forward price-earnings ratio at an all-time low, also cited a slowdown in back-to-school PC sales based on channel checks in Asia. Tablet alternatives using Intel’s Atom chip are more likely to be released in the first quarter of next year, Barclays’ Luke said.”

Full article here.

MacDailyNews Take: Tablet alternatives using Intel’s Atom chip? Hope you have room for a car battery and an air conditioner in your backpack.

31 Comments

  1. That’s absolutely retarded.

    Tens of MILLIONS of computers with Intel processors are sold every year.

    Apple’s A4 won’t KILL Intel, it’s giving Intel some good, HONEST competition. It’ll keep Intel on it’s toes.

    Competition is good Intel. It’s good for Apple. It’s good for ALL of us.!

  2. I know there’s been talk of Apple using AMD’s new AAU chips but I don’t see them using anything but their A4 and it’s successors in their iOS devices. There’s a reason why they bought out PA Semi.

  3. it’s only a matter of time until apple make the whole thing themselves , the cpu , the gpu the lot

    and they think that big building in Colorado is for some silly cloud computing gig ?

    steve’s always one step ahead , ALWAYS

  4. There’s more to this story than chips.

    Intel and AMD doesn’t have an in-house team of scientists designing the OS and hardware in a synergistic manner, instead they have contend with lots of note taking and interpretation.

    However, I would imagine the biggest detriment is, Microsoft and Intel don’t share everything during the design process and so the end result is only as good as the information received and comprehended.

    The A4 might be killing the netbook market, and Intel by association, but the direct effect is more like a case of hemmorhoids; a royal pain in the ass, but they aren’t killing anyone.

  5. @PA Semi?,
    First, all the people from PA Semi are not gone. Only the top 1 or 2 executives left and maybe a few engineers under them. More importantly Apple bought their proprietary technology. As Steve Jobs said in the iPad keynote, Apple has been doing silicon for a long time in-house and are very good at it. They are not stopping at the A4 chip.

    Second, Mark Papermaster wasn’t brought in to run a chip division. He was in charge of the overall iPhone design and ran it at a high (too high apparently) level. He wasn’t working in a chip lab.

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