(iTers News) - As Microsoft Corp. embraces ARM processor architecture to get ARM processor-based application processor chips up and running on Windows OS system, it will pave a way for the U.K.-based microprocessor IP provider to expand its place well beyond tablet PCs and into notebook PC market.
Yet, it remains to be seen whether ‘Windows OS on ARM processor’ platform will be as successful in smartphone market as the so-called WINTEL alliance has been in the PC market, as the kingpin of PC OS market is struggling to fight back the dominance by Apple’ iOS and Google’s Android OS of worldwide smartphone OS market.
“Windows phones on ARM (processor) might not be successful on phone space. They may not be successful, or not on phone space with Windows 8. That’s up to them. Yet, the key changer for ARM is that Windows 8, which runs on tablet and notebook. That’s where we find prospects,” Warren East, CEO with ARM Holdings plc said in a brief talk with iTers News.com
His remarks came at a time when Microsoft is testing a consumer review beta version of Windows 8 OS system for the launching in the year.
CEO Warren East joined a press conference at Seoul Digital Forum 2012 held in Seoul, Korea between May 22 and 23. He gave brief comments not only on how ARM Holdings will fight back Intel’s foray into smartphone and tablet PC markets but also on how to make inroads into notebook and tablet PC markets, Intel’s stronghold.
As recently as May 18, he said in an interview with Dow Jones that he expected ARM processor core-based applications processor chip makers would command 10 and 20% of the worldwide notebook PC market in 2014 and 2015. He was also quoted as saying that that would be much higher penetration than Intel would make into smartphone market.
Windows 8 OS is a new generation of Windows OS system for desktop and notebook PCs as well as tablet PCs. For smartphones, Microsoft is about to release Windows Phone 8 OS, the sibling of Windows 8 OS, late in 2012.
‘Windows on ARM ‘ better befits tablets and notebooks
At the press conference in Seoul, Warren East also echoed he expect rival Intel Corp’s processor core will take some share of smartphone market, but ARM core will continue to maintain very and very high shares in mobile phone space, because of our partnership model
“If Intel succeeds in creating technology, which is as good as ARM technology, then they will also become one of twenty chip suppliers supplying chips for mobile phones. In addition, of course, ARM does not stand still. Once Intel improves their technology with manufacturing expertise and they expect to achieve things like a 20% improvement in power efficiency with thin technology. As that is happening, ARM is also improving technology,” added he
According to him, ARM’s ‘Big Little’ architecture, which the company announced at the end of last year, enables smartphones on ARM core to advance Intel core-based (phone) by 2X improvement in performance and 5X improvement in power efficiency.
He also stressed that ARM would maintain its partnership business model, under which the processor core IP provider licenses its huge pool of IPs to help chipmakers to ARM core-based chips.
Defying European financial crisis
“We don’t believe that the WINTEL model, which dominated PCs for 25 to 30 years, is the right model, going forward, for any application, is it smartphone, or not,” he emphasized.
Power efficiency is another sure-bet for success in smartphone market. CEO Warren East predicted form factors for smartphones and tablet PCs won’t become important and the functionality will be very and very similar. Instead, as form factors get smaller, so are batteries.
“This means power efficiency will be the No.1 technology criteria (for processor cores),” added he.
Looking forward, Warren East expects Europe’s financial crisis will depress ARM’s royalty revenue growth in some ways, but he was confident the company will outperform the growth of underlying semiconductor industries.
“I find it impossible to believe that European financial crisis will not have some impact on consumer spending. If consumers are buying fewer TVs, fewer computers, fewer smartphones, and then our partners will ship fewer chips, and we will earn less royalties, he said.
“However, in our experience, ARM’s royalties tend to outperform growth of underlying semiconductor industries and even this year we are looking forward to a 35% growth in smart phones and very strong multi-high growth in tablets. I think that ARM technology will be getting design wins in those places which still have very strong growth in spite of Europe’s financial crisis.
And this is a positive effect for our royalties and licensing fees because semiconductor companies wish to be equipped with the latest of ARM technology. It together is good for our profitability and royalty growth, “added he.