In many ways it is good for businesses and consumers that the market for microprocessors could be expanding to include more suppliers. Intel has earned its bragging rights in the PC microprocessor industry but we won't really know ever how much better the segment would have developed had there been other strong players in the market.
If ARM-based microprocessors penetrate the PC market that would be a good thing. Same thing in the smartphone, tablet device and integrated device markets. By entering the market, Intel promises to make it even more competitive and diverse, developments that will be good for equipment buyers.
I couldn't include this in last post. But I feel the ground of processors is actually looking good with more players being added. AMD is trying hard to get into the matket with thier fusion and Brazo platforms while ARM is going in a big way to release the processor for computer applications. If windows supports ARM in their desktop processors and Server processor versions we will see rise of third big contributer to the processor supplier in addition to AMD and Intel. All these vendors will be launching new platform with integrated GPU's and then all it matters is performance and cost.
Bola Ji, As you comment out the gaps are definitely getting blurred with recent blown out tablet market. The smart phones and the tablets almost require the similar hardware excluding the mobile connectivity. Quallcom and Atheros will together means definitely a very big market share and it does affect the Intel if Quallcom can come out with smartphone or tablet solution with high integration using the Quallcom application processors and their own wireless interface components.
Qualcomm is also positioned now with the Atheros purchase to take on Broadcom, accoding to iSuppli. In fact, the lines of differentiation between semiconductor companies supply products to computer manufacturers, mobile phone OEMs and tablet device OEMs are blurring rapidly. At the ongoing Consumer Electronics Show, Microsofit demonstrated a Windows Operating System that works on ARM-based processor. It didn't say whether this would compete with the Intel x86 processor but I am now beginning to think the microprocessor market is going to be intensely competitive over the next few years with more companies diving in. The same is happening in the tablet and smartphone market.
As we discussed in our Intel v. ARM post(s) not long ago, Intel has been aggressively moving into the mobile device space.Qualcomm in now positioning itself to move into Intel’s world.Qualcomm may become a thorn in Intel’s side sooner rather than later.
On paper, this makes perfect sense. With Atheros sales projected to explode, I would agree that Qualcomm has to pay a premium for the company.
In reality, the merging of two companies, can be very challenging. The only positive here is that Qualcomm is so much larger that they may be able to absorb Atheros without too much trouble. Hopefully the Atheros employees will benefit long term from this merger - in addition to the short term stock incentives.
Very good article Bolaji... I agree that the merger makes sense, but you brought up a few points I really hadn't thought of.
Of course, I do believe that the deal would make even more sense if Qualcomm was able to negotiate a slightly more favorable deal. That being said, I don't think the terms are too far off the mark.
I must admit that I hadn't given too much thought to the acquisition-related integration challenges that Qualcomm will likely face. This, I believe, is absolutely critical to the long-term success of the deal. Let's hope the marriage gets off on the right foot.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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