When you think of smartphone chips Intel (Nasdaq: INTC) is far-removed from the conversation. But not so fast says one analyst.
According to Jefferies' analyst Mark Lipacis, Intel is more competitive in smartphones than you think.
The firm's analysis leads them to believe: 1) INTC is extending its manufacturing lead over ARM, which... 2) Is Enabling INTC to offer a more powerful mobile processor at competitive power usage levels compared to ARM-based CPUs.
On Intel increasing its manufacturing lead,the firm said when comparing the dates that Intel and TSMC (ARM-CPU foundry) reached 10% of unit shipments for a given manufacturing process node, they found that Intel's lead has doubled to 30 months, between the 90nm and 32nm manufacturing process node.
Intel chips may also be better for web browsing, using the same power. "Using web browsing benchmark data from Anandtech, Intel and Linley, we show that with Medfield, INTC may offer a more powerful CPU at competitive power usage levels, as compared to ARM-based competitors," the analyst said.
While ARM-based CPUs have improved their CPU horsepower, they've done so at the expense of die size. However, Intel has lowered both the die size and power consumption and is now in the middle of the ARM-CPU pack in terms of die size. While Intel's next generation mobile CPU, Medfield, has yet to launch, its die size is worth watching to determine cost competitiveness, the firm said.
Bottom line, the firm said, is "expect INTC's mobile CPUs to surprise to the upside."
However, while having a superior CPU is one thing, Intel will have to win OEMs who can build mobile systems that end users want to use. The leading OEMs, Apple (Nasdaq: APPL) and Samsung, have their own silicon capabilities. That said, Jefferies said they wouldn't be surprised to hear of an OEM Smartphone design win for INTC in 1H12.
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I am posting it for the first time. I have been a regular reader of this board. Finally the street is starting to realize the advantage of the manufacturing process Intel has over the rest of the semiconductor industry.
