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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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!