Intel Corp (INTC)

[mas]

Intel is setting up new expectations in the OEMs ...

According to market research firm Strategy Analytics, Intel sold 2.4 million smartphone application processors last year, which is a mere 0.2 percent market share. But its share is expected to drastically increase thanks to the successful bid with Samsung.

As the Wireless Business Division of Samsung Electronics has decided to buy Intel application processors, a reduction in the supply of the ‘Exynos’ processors of Samsung Electronics’ System LSI Division is forecast. The Wireless Business Division has used the six-core Exynos in low-end smartphones, including the Galaxy K Zoom and the Galaxy Note 3 Neo. The Wireless Business Division is said to have already pressured the System LSI Division to lower its prices to the level of Intel. An insider in the market said, “Intel, which is desperate to boost its share in the mobile market, is playing a chicken game in the application processor market.”

Of course the fact that Intel is using its own Core paid for internal fabs to deliver Atom chips at close to very low cost price is no surprise to us as we have been discussing that theoretical possibility for years now although it's probably a shock to the ARMy who believed all that x86 is expensive garbage FUD they put out. If Samsung's own internal foundry can't match the cost what chance do the other fabless ARM players have long term ? I reckon too even at $7 there is still a dollar or two gross profit there.

As to the heat claims well none of the ARMy chips can sustain their 2+ GHz top speed for long either although I will want confirmation from a source other than a rumor site before believing it. If Samsung want a lower clock than there is the lower binned Z3560 at 1.8GHz which will probably suit Intel anyway for mass volume yield purposes.

This is good news for those lamenting about a big design win for Intel's phone chips, I am pretty sure it will be a good chip when tested and in real world use.

The phony war is over, the x86 phone invasion has started for real now .