Intel is doomed, claims ARM

ARM claims that Intel is doomed because it cannot take advantage of the mobile market.

Co-founder of ARM, Hermann Hauser, told the Wall Street Journal over the weekend that while Intel still has the PC market sewn up, it was not dong well enough in the mobile market.

Hauser claims that while Intel’s business model works in the PC space, it will never work in the handset market.

He said that ARM is going to kill the Intel microprocessor because the chip giant has the wrong business model.

People in the mobile phone architecture do not buy microprocessors. So if you sell microprocessors you have the wrong model, Hauser said.

Intel is used to competing with a company like AMD, but in a business where people licence chip making, Intel is having to compete with every semiconductor company in the world.

Hauser said that initially the history of computing was first dominated by the IBM mainframe, then came the mini computer dominated by DEC, then came the third wave with workstations dominated by Sun and Apollo, then the PC.

“Now it’s the mobile architecture that is going to be the main computing platform at least on the terminal side,” he said.

However, there is no case in the history of computing where a company that has dominated one wave has dominated the next wave and there is no case where a new wave did not kill the previous wave, he pointed out.

The people that dominate the PC market are Intel and Microsoft, so they must be toast said Hauser.