The Apple / ARM disruption of the microprocessor industry (Intel) gains momentum

“Despite stock price corrections in both Apple (AAPL) and ARM (ARMH) post earnings, together they are leading what is perhaps the most important (and much overlooked) disruption in tech: a manufacturing paradigm shift away from commodity processor manufacturers such as Intel (INTC), to a new model of custom systems on chip (SOCs) designed by device manufacturers such as Apple,” Mark Hibben writes for Seeking Alpha. “This disruption will be a source of new markets and expanding revenue for both companies, making them good long-term investments.”

“The disruptive character of Apple’s design and production of custom ARM processors has been largely overlooked because it flew in the face of conventional wisdom: custom processors such as Apple’s A-series SOCs were an aberration, not a trend,” Hibben writes. “Eventually, economies of scale and superior process technology would [supposedly] allow Intel to assert dominance of commodity processors in mobile devices as it had in conventional PCs.”

“The benefits to the mobile device makers of custom SOCs were mainly in the area of providing a more seamlessly integrated user experience in which Apple devices have always stood out. Intel advocates have not understood how unimportant raw processor speed has become in mobile devices compared to ease of use and hardware/software integration and reliability,” Hibben writes. “My sense is that the process advantage on which Intel’s hopes for cost competitiveness depend will be erased before Intel gets much traction in mobile. I have a growing, though not particularly well supported, suspicion that Intel’s x86 architecture, even in its much enhanced x64 configuration, has simply become obsolete. It had to happen eventually. The lack of mobile competitiveness is just the first sign.”

Apple A7

“And this is where the opportunity really lies for the ARM ecosystem, not merely to be the universal mobile platform, but the universal computing platform for the 21st century,” Hibben writes. “Apple’s A7 points the way to a more efficient computing platform than Intel that can serve in all capacities, desktop, server, mobile,and Internet of Things.”

Read more in the full article here.

MacDailyNews Take: Here, bunny, bunny…

Steve Jobs welcomes Inel's Paul Otellini

[Thanks to MacDailyNews Reader “MotivDev” for the heads up.]

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23 Comments

  1. As for combining PC CISC architecture with ARM RISC architecture, I think you need to do some reading to comprehend WHY the two will NEVER be the same

    WAIT !!! WAIT !!! Hold On, Derek…..
    An AMD/ARM chip could be made.
    Remember, the AMD runs PC stuff, BUT it’s a RISC chip, NOT CISC.
    So, one more time. To run FCPX, or some other heavy duty thing, you’re not going to run it on an A7.
    I really do think Apple needs ONE chip to run ALL it’s software.

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