QUALCOMM, Inc. (QCOM): Can Intel Corporation (INTC) Become a Force in Mobile?

Page 1 of 2

As Intel Corporation (NASDAQ:INTC) looks toward its future — and the prospect that being chipzilla is less important when the chips it makes are no longer flooding into PCs — establishing a significant footprint in mobile has never been more critical. This was likely one of the primary motivators behind its efforts with Tizen, the new smartphone operating system being designed in partnership with Samsung in others. This is not to say that Intel is not making efforts on the PC side, simply that its involvement with Samsung in balancing the market share against the continuing spread of Google Inc. (NASDAQ:GOOG)’s Android has the potential to revamp the company’s focus a bit.

QUALCOMM, Inc. (NASDAQ:QCOM)

The importance of Tizen
If you have followed the growth of Android at all, you are already aware that in four short years the operating system has gone from newcomer to the name to beat. Research firm IDC puts Android’s market share at 68.3% for 2012, with Apple Inc. (NASDAQ:AAPL)’s iOS a distant second with 18.8%.  While these numbers are impressive, they get even more extreme in the emerging markets; late last year, where the overall smartphone market was showing a 46% growth rate, that figure was 63% in the emerging markets. Apple has very little penetration into these markets, helping to explain why Android has been able to grow so fast.

Behind this growth, however, is a significant problem that Tizen looks to correct. Google’s web applications, which form the integrated programs that are native to Android, are not the preferred option in most of Asia. While we all remember Google’s noble departure from China when the local government told the company that it had to either allow snooping or depart, options such as Baidu and Naver are preferred in most of these countries. The availability of a huge ecosystem and free software have led to the wide adoption of Android in spite of these limitations, but many manufacturers build complex user interfaces that largely strip away much of Android’s functionality.

In an attempt to address this problem, Google Inc. (NASDAQ:GOOG) and Samsung have banded together, joined by an amalgam of Asian telecoms — think Huawei and others — to create a new open-source OS that will challenge Android. Functionally, early reports suggest that the look and feel will be very similar to Android — because Google and Samsung have recently run short off things to sue each other over — but the even-more-open Tizen will give specific manufacturers that ability to more easily use other applications.

While no formal announcement has been made, you should assume that as an integral part of its role in helping to develop the new OS, Intel Corporation (NASDAQ:INTC) is endearing itself with all of these manufacturers. Samsung is expected to release a high-end, Tizen-based smartphone by the end of the summer that will directly compete with its own Galaxy S4. As the Tizen ecosystem is developed, assuming it can get a solid foothold, it will make the entire market more interesting.

What will be very interesting is how Google’s Motorola reacts to the news. Going back to Jan. 2012, Motorola and Intel have continued to deepen their partnership. Where most U.S. version of the Razr line uses QUALCOMM, Inc. (NASDAQ:QCOM) chips, Intel got most of the European orders. The critical differentiator was Qualcomm’s superiority in 4G LTE. In Europe, where the protocol was at a different stage of development, this distinction was not critical and Intel chips were used.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!