iSuppli: Microsoft/Intel alliance is fraying
TweetFollow Us on Twitter

iSuppli: Microsoft/Intel alliance is fraying

After a generation of setting the pace and calling the shots in the computer market, the Microsoft/Intel cartel known as Wintel now finds itself playing catch-up in the new era of smartphones and media tablets, spurring a widening rift in the historic alliance, according to IHS iSuppli (www.isuppli.com).

Despite a flurry of activities to adjust to the changed realities of the technology industry, Wintel is expected to suffer a declining share of the "new" computer market, a category consisting not just of PCs but also of the much faster-growing smartphone and media tablet segments, says the research group. Microsoft’s share of the operating system market for the three products combined is expected to slip to 33% in 2016, down from 44%in 2011, according to an "IHS iSuppli DRAM Dynamics Report."

Meanwhile, Intel’s share of microprocessors will fall to 29%, down from 41%. At the same time, the total size of the market will double from 2011 to 2016, almost entirely due to the strong growth of the smartphone and media tablet segments, as presented in the table.

Craig Stice, senior principal analyst compute platforms at IHS, has this to say: "Microsoft and Intel once marched shoulder to shoulder, dominating the PC market with their closely tied operating system and microprocessor technologies," says. "In the PC segment, Wintel extracted the majority of the profits, controlled every move and compelled all other players to either comply or risk being forced out of the game. While still an overwhelming influence in their respective markets, the tables have turned for Microsoft and Intel.

"With smartphones and tablets performing tasks previously exclusive to PCs, the computer market has expanded to include other platforms. As a result, Wintel finds itself in the unfamiliar position of dancing to someone else’s tune, following standards that were set by other companies for form factors, user interfaces and even pricing. This means Microsoft and Intel must think outside the box -- even if it means adopting strategies that work against each other’s interests."

Wintel outsmarted in smartphones

IHS predicts 655 million smartphones will ship worldwide in 2012, nearly triple the total for mobile computers. From a processor perspective, the ARM architecture long has been the leader in the smartphone market. Intel, although dominant in the PC world, has yet to make much headway in this segment.

IHS estimates Intel has been able to capture only 6-8 %of market share in the mobile handset processor revenue business -- with its small success in this area mostly due to the company’s acquisition of the wireless business of Germany’s Infineon Technologies.

In the smartphone operating system segment, Android and iOS lead the pack. Microsoft’s Windows Mobile has fared even worse than Intel, with less than 2% share in 2011, although the company is expected to make advances in the market in the coming years.

Headache tablets for Wintel

Media tablets sit in the sweet spot between the smartphone and the notebook computer. Similar to that of the smartphone, the tablet growth rate is very strong throughout the forecast period. By 2016, IHS projects that media tablet shipments will surge to 311 million units, about equal to the total mobile computer market at 322 million.

Tablets have given consumers a new choice for their computing needs and now are leaking into the corporate space due to their ultra-portability. Compared to the Intel options, ARM-based processors have generally ruled the media tablet market because of their low power and price. New players like NVidia, Qualcomm and Texas Instruments are  also dominating the processor market, leaving out Intel.
Equally, Apple’s iOS and Google’s Android have controlled the operating systems for tablets, excluding Microsoft from the party.

Win vs. Tel

These developments represent a huge challenge for the two technology giants accustomed to industry hegemony. However, neither is sitting still, as the computer industry has witnessed more innovation in the last nine months than it has in two decades. Significantly, many of these innovations enlarge the schism that is forming between the two companies.

If you can’t beat ‘em …

Intel’s response has been to go back to its bread and butter, the notebook, by making a complete overhaul of the system to make it ultrathin, ultraportable, and ultramobile. The ultrabook represents Intel’s bid to reignite the PC market and draw consumer dollars away from the other computing gadgets.  

However, Intel is also making moves to compete directly in the media tablet market. The company’s solution is to promote its Atom microprocessor directly to makers of Android operating system-based media tablets.

For Intel, this represents a fundamental departure from the Microsoft-centric approach to the PC market and toward an operating-system-agnostic philosophy, according to IHS iSuppli.

Opening Windows

Microsoft’s response is the Windows 8 operating system. The company has conducted a complete restructuring of its operating system, adding in the new “Metro App” tile style, quick reboot, and touch-screen interface, just to name a few changes. All of these are features similar to what would be included in a smartphone or tablet.  

Just as with Intel, Microsoft’s response involves a step away from its traditional partner, notes IHS iSuppli. One version of Windows 8, Windows RT, runs on ARM processor-based platforms. This is Microsoft’s attempt to disconnect from Intel x86 microprocessor-based systems to become platform agnostic.

The new computer market

"Wintel now is playing in a new computer market that is a composite of the PC, smartphone and media tablet segments," Stice says. "While this may be a non-traditional way of looking at the PC market, tradition has gone out the window. The smartphone influenced the tablet, the tablet influenced the PC, the PC wants to become more like a tablet and the tablet more like a PC. It’s a vicious circle in which both Intel and Microsoft must take part, but they are losing control of the game and how it’s played. The Wintel camp is not accustomed to following, but with both companies being excluded of the two fastest-growing markets, they are in catch-up mode."

While this may be hard news for Wintel, the beneficiary is the consumer, he adds. Read more at "The Changing PC and the Impact to the Wintel Dominance" (http://macte.ch/87bZP).

 
AAPL
$524.94
Apple Inc.
+5.93
MSFT
$40.01
Microsoft Corpora
-0.39
GOOG
$536.10
Google Inc.
-20.44

MacTech Search:
Community Search:

Software Updates via MacUpdate

VMware Fusion 6.0.3 - Run Windows apps a...
VMware Fusion allows you to create a Virtual Machine on your Mac and run Windows (including Windows 8.1) and Windows software on your Mac. Run your favorite Windows applications alongside Mac... Read more
Tweetbot 1.5.1 - Popular iOS twitter cli...
Tweetbot is a full-featured OS X Twitter client with a lot of personality. Whether it's the meticulously-crafted interface, sounds and animation, or features like multiple timelines and column views... Read more
Mac DVDRipper Pro 4.1.7 - Copy, backup,...
Mac DVDRipper Pro is the DVD backup solution that lets you protect your DVDs from scratches, save your batteries by reading your movies from your hard disk, manage your collection with just a few... Read more
PDFpenPro 6.2 - Advanced PDF toolkit for...
PDFpenPro allows users to edit PDF's easily. Add text, images and signatures. Fill out PDF forms. Merge or split PDF documents. Reorder and delete pages. Even correct text and edit graphics! Create... Read more
PDFpen 6.2 - Edit and annotate PDFs with...
PDFpen allows users to easily edit PDF's. Add text, images and signatures. Fill out PDF forms. Merge or split PDF documents. Reorder and delete pages. Even correct text and edit graphics! Features... Read more
Monolingual 1.5.9 - Remove unwanted OS X...
Monolingual is a program for removing unnecesary language resources from OS X, in order to reclaim several hundred megabytes of disk space. It requires a 64-bit capable Intel-based Mac and at least... Read more
Maya 2015 - Professional 3D modeling and...
Maya is an award-winning software and powerful, integrated 3D modeling, animation, visual effects, and rendering solution. Because Maya is based on an open architecture, all your work can be scripted... Read more
Starcraft II: Wings of Liberty 1.1.1.180...
Download the patch by launching the Starcraft II game and downloading it through the Battle.net connection within the app. Starcraft II: Wings of Liberty is a strategy game played in real-time. You... Read more
Sibelius 7.5.0 - Music notation solution...
Sibelius is the world's best-selling music notation software for Mac. It is as intuitive to use as a pen, yet so powerful that it does most things in less than the blink of an eye. The demo includes... Read more
Typinator 5.9 - Speedy and reliable text...
Typinator turbo-charges your typing productivity. Type a little. Typinator does the rest. We've all faced projects that require repetitive typing tasks. With Typinator, you can store commonly used... Read more

Latest Forum Discussions

See All

This Week at 148Apps: April 14-18, 2014
Spring Into Our App Reviews   | Read more »
Have a Special Dead Trigger 2 Easter Bas...
Have a Special Dead Trigger 2 Easter Basket Full of Goodies, Courtesy of Madfinger Games Posted by Rob Rich on April 18th, 2014 [ permalink ] Dead Trigger 2 | Read more »
Almost All of Playdek’s Library is on Sa...
Almost All of Playdek’s Library is on Sale Right Now, and You Should Check it Out Posted by Rob Rich on April 18th, 2014 [ permalink ] Playdek has released quite a few great iOS ports of board and card games over the years, and now most of them... | Read more »
Zynga Launches Brand New Farmville Exper...
Zynga Launches Brand New Farmville Experience with Farmville 2: Country Escape Posted by Tre Lawrence on April 18th, 2014 [ permalink ] | Read more »
David. Review
David. Review By Cata Modorcea on April 18th, 2014 Our Rating: :: MINIMALISTIC IN A DIFFERENT WAYUniversal App - Designed for iPhone and iPad David is a minimalistic game wrapped inside of a soothing atmosphere in which the hero... | Read more »
Eyefi Unveils New Eyefi Cloud Service Th...
Eyefi Unveils New Eyefi Cloud Service That Allows Users to Share Media Across Personal Devices Posted by Tre Lawrence on April 18th, 2014 [ permalink ] | Read more »
Tales from the Dragon Mountain: The Lair...
Tales from the Dragon Mountain: The Lair Review By Jennifer Allen on April 18th, 2014 Our Rating: :: STEADY ADVENTURINGiPad Only App - Designed for the iPad Treading a safe path, Tales from the Dragon Mountain: The Lair is a... | Read more »
Yahoo Updates Flickr App with Advanced E...
Yahoo Updates Flickr App with Advanced Editing Features and More Posted by Tre Lawrence on April 18th, 2014 [ permalink ] | Read more »
My Incredible Body - A Kid's App to...
My Incredible Body - A Kid's App to Learn about the Human Body 1.1.00 Device: iOS Universal Category: Education Price: $2.99, Version: 1.1.00 (iTunes) Description: Wouldn’t it be cool to look inside yourself and see what was going on... | Read more »
Trials Frontier Review
Trials Frontier Review By Carter Dotson on April 18th, 2014 Our Rating: :: A ROUGH LANDINGUniversal App - Designed for iPhone and iPad Trials Frontier finally brings the famed stunt racing franchise to mobile, but how much does its... | Read more »

Price Scanner via MacPrices.net

Deal Alert! 13-inch MacBook Pro on sale for $...
Best Buy has the 13″ 2.5GHz MacBook Pro on sale for $999.99 on their online store. Choose free shipping or free instant local store pickup (if available). Their price is $200 off MSRP. Price is valid... Read more
Free HopTo 2.2 Helps Enhance Your Productivit...
The HopTo app helps you do more on your iPad by providing more and easier adaccess to files and documents. Version 2.2 adds Egnyte and HopTo’s Mac OSX File Connector. If you already have the hopTo... Read more
National Distracted Driving Awareness Month:...
As the country recognizes National Distracted Driving Awareness Month, Sprint is reminding wireless consumers to focus on driving while behind the wheel, to not text or email while driving, and to... Read more
13-inch 2.4GHz Retina MacBook Pro available f...
Abt has the 13″ 2.4GHz 128GB Retina MacBook Pro available for $1229 including free shipping. Their price is $70 off MSRP. Read more
iMacs on sale for up to $160 off MSRP this we...
Best Buy has iMacs on sale for up to $160 off MSRP for a limited time. Choose free home shipping or free instant local store pickup (if available). Prices are valid for online orders only, in-store... Read more
iPad Airs on sale this weekend for up to $100...
Best Buy has WiFi iPad Airs on sale for $50 off MSRP and WiFi + Cellular iPad Airs on sale for $100 off MSRP on their online store for a limited time, with prices now starting at $449. Choose free... Read more
Apple restocks refurbished Mac minis starting...
The Apple Store has restocked Apple Certified Refurbished Mac minis for up to $150 off the cost of new models. Apple’s one-year warranty is included with each mini, and shipping is free: - 2.5GHz Mac... Read more
Hyundai Brings Apple CarPlay To The 2015 Sona...
Hyundai Motor America has announced it will bring Apple CarPlay functionality to the 2015 Sonata. CarPlay is pitched as a smarter, safer and easier way to use iPhone in the car and gives iPhone users... Read more
Updated iPads Coming Sooner Than We Had Thoug...
MacRumors, cites KGI securities analyst Ming Chi Kuo, well-respected as an Apple product prognisticator, saying that Apple will introduce an upgraded iPad Air and iPad mini in 2014/Q3, meaning the... Read more
Toshiba Unveils New High And Low End Laptop M...
Toshiba has announced new laptop models covering both the high-end and low-end of the notebook computer spectrum. Toshiba 4K Ultra HD Laptop Toshiba’s new Satellite P55t features one of the world’s... Read more

Jobs Board

Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
*Apple* Inc. Research Data Specialist - Appl...
…of Worldwide Market Research & Intelligence. The team is responsible for conducting Apple branded consumer market research. It is also responsible for analyzing data Read more
*Apple* Automotive Parts Department position...
Apple Automotive is one of the fastest growing dealer…and it shows. Consider making the switch to the Apple Automotive Group today! At Apple Automotive, we Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.