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Apple to overtake Intel as top mobile chip producer

Apple to overtake Intel as top mobile chip producer
Thanks to captive devices like the Apple iPhone and Apple iPad, Apple is poised to leapfrog over Intel to become the world's top producer of mobile processors. An advance look at a report dated March 27th from research firm NPD In-Stat shows that ARM has 73% of the market to be "the dominant processor architecture" in mobile processors. Leading the notebook market is Intel with its X86 chips, but that is just one part of the market. Besides smartphones and tablets, mobile processors are found in high-end eReaders, handheld game consoles and portable media players. Those devices are dominated by ARM's technology.

The Apple A5X processor found in the new iPad

The Apple A5X processor found in the new iPad

Intel has tried to break into the mobile device market with its next-gen Atom SOC aka Medfield. Unlike Intel's previous generations of Atom, Medfield can run the Android OS. Additionally, improvements made in power consumption by Intel will allow it to compete with low power ARM based processors. Intel is still 3 months away from seeing its
Lenovo K800 Android smartphone launch in China. A leaked photo of a Motorola Android device running Medfield has also been seen, although that model won't hit the market until the second half of this year. Not only is that phone expected to have Intel inside, there is speculation that it will be the manufacturer's first smartphone model launched with Android 4.0.

This leaves Apple ready and willing to surge ahead in the mobile processor market this year, especially as the smartphone and tablet market continue to surge. Both devices soared 75% in sales last year and analysts expect the compound annual growth rate for both to equal 29.3% annually through 2016. NPD says that the mobile processor market grew 46% in 2011 and will grow at a compounded annual rate of 22% through 2016. According to the research firm, we could see changes in the form of consolidation in the industry. NPD sees this taking place in 2013-2014.

source: PCMag

31 Comments
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posted on 22 Mar 2012, 00:45 7

1. thebikerboi2 (Posts: 144; Member since: 01 Apr 2011)


I thought it was Samsung who made the processors for ios devices.

posted on 22 Mar 2012, 00:49 5

2. Lucas777 (Posts: 2121; Member since: 06 Jan 2011)


no apple designs it, samsung builds it

posted on 22 Mar 2012, 01:57 15

5. cheetah2k (Posts: 768; Member since: 16 Jan 2011)


Yes which makes Samsung the top CPU chip producer overtaking intel :)

posted on 22 Mar 2012, 08:40 1

13. JunitoNH (Posts: 832; Member since: 15 Feb 2012)


No, Apple designs the chip. Hence, it won’t allow Samsung to copy it. Well...........actually they ( Samsung) do, in a modify way.

posted on 22 Mar 2012, 05:04 4

7. thebikerboi2 (Posts: 144; Member since: 01 Apr 2011)


true but there is a difference between designing and actually going through the manufacturing process

posted on 22 Mar 2012, 01:14 10

3. speckledapple (Posts: 877; Member since: 29 Sep 2011)


I think this article is inaccurate. How can Apple who designs but do not actually produce their chips leapfrog over Intel to becoming the worlds top mobile professor producer? if we are talking about architecture, Arm is the top producer not Apple. So, what exactly is the top referring to?

posted on 22 Mar 2012, 02:15 8

6. cheetah2k (Posts: 768; Member since: 16 Jan 2011)


this article is just a bit of iFluff really..

smoke n mirrors spreading iBS as usual

posted on 23 Mar 2012, 07:59

25. ZEUS.the.thunder.god (unregistered)


couldn`t say better. very true.

posted on 22 Mar 2012, 11:56 2

15. bayusuputra (Posts: 941; Member since: 12 Feb 2012)


yeah, they should really look up in dictionary for the meaning of "PRODUCER", and differentiate that from "DESIGNER"..

Misleading article.. certainly a good advertisement for apple..

posted on 22 Mar 2012, 01:34

4. rudlie (Posts: 182; Member since: 13 Mar 2012)


does anyone know term of selling and outsourcing? apple are counted as a processor producer like intel. in this term, samsung only the outsourcing company to produce apple's mobile processor. and .... did anyone know intel also outsourcing some of their processors to other company?

posted on 22 Mar 2012, 11:58 2

16. bayusuputra (Posts: 941; Member since: 12 Feb 2012)


did apple actually made/crafted/build one single processor itself? nope..
but intel did.. so yeah, Intel is a producer, but apple at best is a chip designer, a good one at that, i must say..

posted on 22 Mar 2012, 05:41 6

8. rex1213 (Posts: 77; Member since: 29 Jul 2011)


Quoted from the PCMag Article: "Apple is on pace to surge past Intel this year as the top seller of mobile processors used in a variety of computers and handheld devices..."

Quoted from this(PhoneArena) Article: "Thanks to captive devices like the Apple iPhone and Apple iPad, Apple is poised to leapfrog over Intel to become the world's top producer of mobile processors...."

I would like to point out that PCMag considered Apple as "top SELLER of mobile processors" whereas Phonearena considered Apple to "leapfrog over Intel to become the world's top PRODUCER of mobile processors".

I never knew Apple produce their own chips. Really??

In addition, the guys at PCMag were smart enough not to state in any way that Apple produces their own chips, did they?

posted on 22 Mar 2012, 05:48 1

9. twens (Posts: 514; Member since: 25 Feb 2012)


Analysis can f**k off. This is what the future really is going to be like. 30% or more apple tablet users will likely be returning their new iPads in exchange for a windows 8 tablet when they launch. When apple starts loosing customers to Microsoft I don't see them ever over passing intel. Apple products r for de average person that's why I smile to windows 8 cos pc is also for the average person. No matter how dump people are they still know what a pc tablet can do. No one will ever choose an iPad over a windows 8 tablet unless you drink from apples ass.

posted on 22 Mar 2012, 06:26 1

10. roscuthiii (Posts: 1785; Member since: 18 Jul 2010)


Hmm... well, since Apple is really only tweaking ARM chip designs (along with many others), doesn't that really make ARM the largest? That's Apple innovation for you. Put some polish on someone else's work and call it their own.

posted on 22 Mar 2012, 06:58 1

11. bucky (Posts: 1281; Member since: 30 Sep 2009)


Oh the crying.....

posted on 22 Mar 2012, 13:18 1

18. drtech (banned) (Posts: 135; Member since: 16 Mar 2012)


I knew fandroids would be up in arms haha

posted on 22 Mar 2012, 07:12 2

12. remixfa (Posts: 13902; Member since: 19 Dec 2008)


what is wrong with people.

APPLE DOES NOT MAKE THE DARN CHIPS, SAMSUNG DOES. Why do you people keep giving apple credit for simply ORDERING chips from someone else? Dont insult Intel by saying Apple is going to be a bigger chip maker, because apple doesnt make a damn thing. My god, is there anything people wont give apple for doing that they havent ever done??

posted on 22 Mar 2012, 13:17 1

17. drtech (banned) (Posts: 135; Member since: 16 Mar 2012)


Apple designs the chips and outsources production. Does Apple not make iPhones because they outsource to Foxconn?

Apple makes makes chips. Get over it.

posted on 22 Mar 2012, 13:41 3

19. remixfa (Posts: 13902; Member since: 19 Dec 2008)


your wrong, like normal.

ARM designs the chips. Samsung tweaks the chips to make the improvements on ARM designs that makes Exynos better than everyone. Apple buys samsung processors and gets a different GPU, that SAMSUNG puts on for them. Samsung then ships those processors to foxconn to be assembled as per the apple-samsung contracts. At no point in time, has apple actually made anything directly.

And no, Apple does not MAKE iphones. They DESIGN iphones, and a half dozen companies make the product. You dont get to claim you "made it" unless you are actually involved in production more than some paper napkin drawings.

posted on 22 Mar 2012, 14:23 1

20. drtech (banned) (Posts: 135; Member since: 16 Mar 2012)


So the number one seller of smartphones is Foxconn?

posted on 22 Mar 2012, 15:13 1

21. remixfa (Posts: 13902; Member since: 19 Dec 2008)


u do realize that there is a big difference between the word "seller" and the word "producer" right?

Foxconn and Samsung would be the "producer" of the phones and chips, and Apple would be the "seller".

basic language comprehension.

Taco, is that you?

posted on 22 Mar 2012, 15:24 1

22. drtech (banned) (Posts: 135; Member since: 16 Mar 2012)


Ok in your fandroid world Apple doesn't make the chips. In real life they're about to overtake Intel.

posted on 23 Mar 2012, 08:03

26. ZEUS.the.thunder.god (unregistered)


yes. and this is the first thing you are right about. +1 for you. enjoy.

posted on 22 Mar 2012, 16:29 2

23. stealthd (Posts: 911; Member since: 12 Jun 2011)


"Apple buys samsung processors and gets a different GPU"

This is completely 100% wrong. Apple designs their chips, the intellectual property is completely designed and owned by them (except for licensed technologies from ARM, obviously).

Your distinction between design and production is ridiculous. You can't PRODUCE without design. Design is part of production. Apple can take their business to whoever can produce the quantities they need, right now that's Samsung. Samsung is essentially disposable in this scenario, the same cannot be said for Apple.

posted on 23 Mar 2012, 08:14

28. remixfa (Posts: 13902; Member since: 19 Dec 2008)


lol. you need to look the industry up a bit more.

posted on 23 Mar 2012, 14:33

29. stealthd (Posts: 911; Member since: 12 Jun 2011)


No, you do:

"The A5X applications processor costs $23, and represents 6.3 percent of the total BOM. Samsung manufactures the A5X for Apple. However, for this device, Samsung serves as a foundry partner to Apple, and not as an independent semiconductor supplier. Apple is the designer and owner of the intellectual property of the A5X, and Samsung manufactures the part on a contract basis. This means that Samsung likely commands a lower margin on the device that it would otherwise."

http://www.isuppli.com/Teardowns/News/pages/New-iPad-32-GB-4G-Carries-364-35-Bill-of-Materials.aspx

You aren't just a fanboy, you're a full blown troll making crap up to fit the little fantasy world you live in.

posted on 23 Mar 2012, 14:36

30. remixfa (Posts: 13902; Member since: 19 Dec 2008)


uhh.. seriously?

Ok now, look up a history of the samsung/ apple partnership. Samsung got their designs from another company. Apple, in order to control the designs, bought that company out. However the chips are still sister chips. They didnt verge at all until the A5/Exynos, where the only thing that changed of note was the GPU. The A4 chip is a mirror to the Hummingbird chip in every way exept that it uses a slightly older PowerVR GPU than the one in the Hummingbird.

Please, come back to me after u research.

posted on 23 Mar 2012, 19:49

31. stealthd (Posts: 911; Member since: 12 Jun 2011)


Why would I do any research to disprove your false claims? You're just making crap up, the burden of proof is on you.

You don't even know the difference between Unix and Linux, wtf do you know about processors or tech business relationships? Nothing.

posted on 22 Mar 2012, 10:20 2

14. PhoneCritic (Posts: 352; Member since: 05 Oct 2011)


@Remixfa

I concur.

@ Alan
I would change the wording of the artical. It is common knowlege that Apple does not manufacture it's own chips but rather simply tweak the design from ARM to suit its Os. The real Manufacture of the processor is Samsung. Did not Samsung built a new chip manufacturing facility in Texas in perticular for this. I am not an Apple basher or hater but fact are facts and giving Apple credit for becoming the biggest processor manufacture is wrong. Seller yes, Manufacture no - Intel, Samsung, TI etc.. holds those titles and Last checked all the processors in both the iPhone & iPad are braned Samsung.

posted on 22 Mar 2012, 16:36 1

24. stealthd (Posts: 911; Member since: 12 Jun 2011)


ARM does not provide a full processor to "tweak". That's why there are so many different SoC's. ARM just gives you a starting point. If you'd rather say "Apple+Samsung" are set to overtake intel, then that makes sense, but it makes no sense to divorce Apple from that when they're the designers of the chips and the owners of the IP. Apple's chips don't get produced without Apple, regardless of who's doing the manufacturing.

posted on 23 Mar 2012, 08:08

27. dekay84 (Posts: 5; Member since: 27 Feb 2012)


perhaps the writer's last name is Fails

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