With ARM licensing deal Intel can have the cake and eat it too

Its struggle to enter the mobile market space is history. This deal has the potential to place it right at the centre of the mobile space.

In a strategic move designed to create its space in your pocket, Intel is flexing its manufacturing muscles by entering into a licensing deal with ARM.

Significantly, for Intel, if it were to not provide this license to ARM, its manufacturing space could be wasted. But thanks to it, it can now make processors for Qualcomm, Samsung and Apple for their smartphones.

With this deal, the struggle that it underwent to create a separate space for itself in the crowded mobile space earlier can now be bridged easily.

Furthermore, this deal also provides Intel with a foot in the door with VR hardware, which could explain its upcoming Project Alloy all-in-one headset. You are right, this naturally means more money for Intel and faster 10 nanometer chips for us consumers.

Incidentally, recently ARM was acquired by Softbank, A Japanese tech giant, for a cool $32 billion. Although the financial terms of this licensing deal is yet undisclosed, one can easily guess that this is in fact a huge deal.

For Intel, this assumes strategic significance since the PC market is on the decline. With this deal it has slingshot itself into the mobile marketspace without actually manufacturing any mobile for itself.

Incidentally, Intel is rumoured to be creating modem chips for Apple’s future iPhones.

In fact, Intel will manufacture the chips for LG’s upcoming product line. In Intel’s own words it will “produce a world-class mobile platform based on Intel Custom Foundry’s 10 nm design platform,” for LG.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s