Query: Who makes the Apple-branded chip in the iPhone? Answer: Samsung. This nontrivial detail translated into smartphone chip market share gains for Samsung in the second quarter, according to iSuppli.
Apple iPhone market share gains drove Samsung chip rise.
(Credit: Apple)The iPhone, largely due to the popularity of the 3GS model, accounted for 13.9 percent of global smartphone shipments in the second quarter, up from 10.1 percent in the first quarter, according to iSuppli. As a result, Samsung accounted for 15.9 percent of global revenue from sales of standalone applications processors. An applications processor is roughly analogous to the main Intel or Advanced Micro Devices processor in a PC: it is basically the brains of a smartphone.
Samsung's market share was up nearly 1 percent from the first quarter, iSuppli said, though it still trailed No. 1 supplier Texas Instruments. iSuppli defines a "standalone" applications processor as digital signal- or logic-based processors not integrated with the digital baseband function.
"Since the introduction of the first (iPhone) in January 2007, Samsung has occupied the key applications processor slot in Apple's iPhone line," Francis Sideco, principal analyst of wireless communications for iSuppli, said in a statement. "With the new 3GS model allowing the iPhone to gain share in the smartphone market, Samsung also is claiming a larger portion of standalone applications processor shipments."
As with previous iPhone models, the 3GS--introduced in June--integrates a Samsung processor based on the ARM architecture. The processor accounted for $14.46, or 8.4 percent, of the materials cost of the iPhone 3GS based on pricing in late June, iSuppli said.
"The partnership between Apple and Samsung on the applications processor in the iPhone has been a major coup for Samsung, establishing it as a player in the market and allowing it to challenge the incumbent leader, Texas Instruments," Sideco said.
The big question, however, is how long a good thing will last for Samsung. Sideco added that "there is a lot of speculation as to whether Apple's acquisition of PA Semi will change the parameters of this partnership." Apple announced its purchase of PA Semi in March 2008.
One of the most rapidly circulating rumors has Apple using a PA Semi design in the upcoming Apple tablet. The latest word is that the screen size is about 10 inches diagonally, meaning that a tablet will require more processor and graphics horsepower than a smaller device like the iPhone.
Although Texas Instruments lost some share to Samsung in the second quarter, the U.S. chip giant retained its dominant position in the market, with a share of 24.4 percent. "Texas Instruments continues to lead the market on the strength of its Open Multimedia Application Platform (OMAP) line of applications processors," Sideco said.
Hewlett-Packard was one of the early trendsetters in the ultrathin laptop market with its Voodoo design. But the product has languished for more than a year. What happened--or what will happen--isn't clear.
The ultrathin laptop market is hot and one of the most visible laptop segments today. And activity in this segment has spiked recently in the wake of a raft of new, inexpensive thin laptops from MSI, Acer, and Lenovo, using low-power Intel chips.
HP's Voodoo Envy was a trendsetting ultrathin laptop but it hasn't been updated in a year.
(Credit: Hewlett-Packard)The Apple MacBook Air and Dell Adamo are two of the most prominent designs. The Air has now been refreshed twice. Dell's svelte Adamo was announced in March, complementing its ultrathin business laptop, the Latitude E4200.
But the razor-thin 0.7-inch-thick Voodoo Envy 133--first announced in June 2008--has stood still. ... Read more
The decline in PC chip shipments may be slowing but Netbook processor deliveries were off 33 percent, while Advanced Micro Devices gained on Intel, IDC said.
In the first calendar quarter of 2009, worldwide PC microprocessor shipments fell 10.9 percent from the fourth quarter of 2008, compared with a 17 percent decline from the third quarter to the fourth quarter, according to IDC.
AMD gained on Intel in the first quarter. Intel garnered a 77.3 percent unit market share, a loss of 4.7 percent, while AMD had a 22.3 percent share, a gain of 4.6 percent. AMD gained in the mobile and desktop PC markets, IDC said.
Overall, shipments were down, though the rate of decline may be slowing. "The PC processor market continued to reflect significant decline in end demand for most of 1Q09," said Shane Rau, director of Semiconductors: Personal Computing research at IDC. "However, some inventory replenishment by (PC makers) at the end of the quarter helped to slow the decline and bring the quarter in at a level only slightly worse than typical seasonal decline."
IDC noted that demand from PC suppliers picked up towards the end of the quarter but the market researcher cautioned that the demand was due to PC manufacturers "replenishing their inventories rather than reflecting a return of solid end demand and return to market normalcy."
Unit shipments dropped 13 percent from the first quarter of 2008 to the first quarter of 2009.
Intel's shipments of Atom processors for Netbooks plummeted 33 percent in the first quarter of 2009 compared to the fourth quarter, indicating that Netbook suppliers held significant inventory of Atom processors coming into the new year, according to IDC.
The precise specifications for many iPhone chips are murky. Should Apple be more open about its secret ingredients?
We know the precise dimensions of the outside of the iPhone--but what's inside?
(Credit: Apple)Granted, many people don't care about the silicon inside their iPhone. They just want it to work. That said, I think more than a few people would like to see the specifications for the iPhone's core silicon posted on Apple's Web site.
By comparison, take your typical laptop. Prospective buyers are able to see the exact specifications and make an informed buying decision. Though the iPhone isn't offered in different processor SKUs (models) like a laptop, the iPhone comes close to a PC in its capabilities and demands more disclosure.
Nikkei's TechOn Web site takes a stab at what the iPhone's main chip might be--generically referred to as an application(s) processor: "An LSI (large-scale integrated circuit) printed with Apple Inc.'s logo ("339S0036 ARM K4X1G163PC-DGC3") was embedded on the center right of the board. It was assumed to be an application processor with an ARM core. Because it included a letter string beginning with 'K,' it seemed to be manufactured by Samsung Electronics Co Ltd. of Korea."
Semiconductor Insights is a little more specific, saying it's a "Samsung ARM11-based design."
Here's my point: Am I getting a smartphone with a Samsung, Texas Instruments, Qualcomm, Freescale, Nvidia or Intel processor? As high-end smartphones proliferate (such as those based on Intel's upcoming "Moorestown" processor), it would be useful to know up front who makes the applications processor and other core silicon and what the rated performance-per-watt of that chip is. And right now, the iPhone is the most prominent high-end smartphone.
Don't think smartphone makers should go down the same path as laptops, which are plastered with Intel, AMD, ATI, Nvidia, and Microsoft stickers? Maybe not. But more about what makes the device tick could only be helpful.
Would anybody else like to know?
Texas Instruments sent out a little reminder on Monday that it won't be a cakewalk into the smartphone market for newcomers Intel and Nvidia.
While Intel announced LG Electronics as its first smartphone customer and Nvidia hawks its initial mobile phone technology platforms to prospective customers, TI continues to upgrade its arsenal of ARM-design-based processors, which have been shipping for years to cell phone customers. (Samsung and Palm--and the latter's newest Palm Pre--are among TI's customers.)
At the Mobile World Congress in Barcelona on Monday, TI announced a new OMAP 4 mobile chip platform that will allow smartphones to do 1080p video record and playback and integrate 20-megapixel cameras. TI claims the OMAP 4 will deliver 10-times-faster Web page loading times, more than 7 times higher computing performance, and 10 times better graphics performance than its current OMAP processors.
The OMAP 4 processor is based on the dual-core ARM Cortex A9 MPCore supporting symmetric multiprocessing (SMP) and capable of speeds of more than 1GHz per core, according to TI. Basic ARM processor designs are licensed by U.K.-based ARM Holdings to companies like Texas Instruments and Qualcomm that tweak the design and then manufacture the chip.
OMAP 4 platform and development tools are expected to sample in the second half of 2009, with production expected by the second half of 2010.
TI also said Monday that it is adding to the OMAP 3 family with silicon based on 45-nanometer processor technology. (Intel is also using 45-nanometer manufacturing technology for its upcoming Moorestown smartphone chip.)
The OMAP36x series will run at speeds up to 1GHz, offer a dedicated graphics hardware accelerator for 3D gaming, and support 720p high-definition video recording and playback and 12-megapixel cameras.
The silicon is scheduled to sample in the third quarter.
Worldwide PC processor shipments fell sharply in the fourth quarter of 2008, though Intel's Atom chip bucked the trend, according to new data from IDC.
In the fourth quarter, processor unit shipments declined 17 percent quarter over quarter and 11.4 percent year over year, while market revenue declined 18 percent over the previous quarter and 22.2 percent compared to the year-earlier period to $6.78 billion, IDC said.
"The decline in PC processor unit shipments in the fourth quarter was the worst sequential decline since IDC started tracking processor shipments in 1996," said Shane Rau, a chip analyst at IDC.
(Credit:
IDC)
For the full year, total PC processor unit shipments grew 10 percent, while revenue grew 0.9 percent to $30.8 billion.
Intel's Atom processor is proving to be recession-proof. The popular Netbook chip prevented overall unit decline percentages from going above 20 percent. Without Atom, worldwide PC processor unit shipments would have been significantly worse: declining 21.7 percent quarter over quarter and 21.6 percent year over year, IDC said.
Intel grabbed an 81.9 percent unit market share in the fourth quarter, up 1.1 percentage points over the previous quarter. AMD fell to 17.7 percent, a loss of less than 1 percentage point. For the full year, Intel had an 80.3 percent unit market share, a gain of nearly 3 percentage points, while AMD's share dropped to 19.2 percent, a loss of 3.1 percentage points.
In 2008, Intel gained 4.8 percentage points in mobile PC processor market share, garnering 87.1 percent of the market. AMD finished with a 12.1 percent share of the mobile PC processor market, a loss of 5.3 percentage points.
Looking ahead, IDC said demand remains so weak that it expects sequential processor unit shipment to decline in both the first and second quarters of 2009.
Intel's Atom processor lifted processor shipments in the third quarter but the future for overall processor shipments is uncertain, IDC said.
Intel's Atom processor lifted shipments in the third quarter, IDC said.
Worldwide PC microprocessor shipments in the third calendar quarter of 2008 reached record levels again, according to market researcher IDC. However, the outlook for the processor market in the fourth quarter and 2009 is "very murky," said Shane Rau, director of Semiconductors: Personal Computing research at IDC, in a statement.
Worldwide PC processor unit shipments grew 14 percent quarter over quarter and 15.8 percent year over year, while market revenue grew 7.6 percent from the previous quarter and 4.1 percent compared to a year ago to $8.3 billion.
Intel's new Atom processor for the Netbook market "made a notable difference in the overall market performance," Rau said. Without Atom, unit shipments grew 8.3 percent from the second quarter and 8.7 percent from the same quarter last year.
"Not considering the effects of Atom, the overall market still grew at a decent pace in the third quarter," Rau said. "Intel's and AMD's shipments grew at a rate only slightly slower than typical for a third quarter, and seasonal demand appeared reasonable up until September."
"Up until September" may be the operative phrase, however, as that's when the U.S. financial markets fell sharply. "The worldwide demand environment looks weak, and both Intel and Advanced Micro Devices indicated an uncertain outlook for the market. As a result, IDC is conservative about 2009 and will be lowering its upcoming unit forecast for the year, the report said.
By segment, while the mobile processor segment grew aggressively, the server segment was soft, Rau said.
Third-quarter vendor highlights based on units shipped:
Intel claimed an 80.8 percent market share, a gain of 1.1 percent.
AMD finished with 18.5 percent, a loss of 1.2 percent.
Via Technologies earned a 0.6 percent share.
Intel is seeing solid results for the Atom processor--possibly giving the first significant evidence of Intel's likely future as a bigger provider of low-cost processors.
Intel confirmed on Tuesday that Atom is hot. CEO Paul Otellini said that Intel didn't meet demand in the third quarter and still can't meet demand. "We did not meed demand in Q3 for the product. We are up again substantially in the fourth quarter. Our expectation is that we will meet demand by the end of the year," Otellini said.
And many of the questions from analysts in Tuesday's earnings conference call revolved around Atom as it delivered $200 million in revenue to Intel in the quarter. "Between the microprocessor and the chipset, we did have a couple hundred million dollars of revenue from Atom in the third quarter," Chief Financial Officer Stacy Smith said. "We do expect that to grow rapidly in the fourth quarter."
What Intel appears to like most about Atom is what it calls "margin characteristics." In other words, it's a low-cost processor, but it yields better margins than typical inexpensive chips like the Celeron. "What we've seen in the third quarter is a very healthy product margin," Smith said.
"On a dollar basis it's equivalent to what we see in Celeron and on a product margin percent it's higher. So if you look at it relative to our low-end mainstream stack, it's generating nice product characteristics," Smith added.
Here's the question: if more and more consumers--particularly in places like China and India--opt for Netbooks with the Atom processor rather than traditional notebooks with standard Intel mobile processors, what kind of an impact will this have on Intel's profits?
Intel claims cannibalization of (higher-margin) mainstream mobile processors is not taking place. "To date we haven't seen any evidence of cannibalization. And believe me we're looking. It's something we watch very carefully," Otellini said. "And one of the best pieces of evidence that we have is the strength in the core mobile business independent of Atom," he added.
But tighter consumer budgets worldwide could push more people toward Netbooks. A Gartner report came out Tuesday that said third-quarter PC shipment growth was driven by sales of sub-$500 notebooks. Netbooks typically sell for less than $500.
Other notable comments in the earnings conference call:
• Inventories: Taiwan and channel customers cutting back, consumer traffic overall is light--Otellini
• Intel-Micron: Joint Singapore flash memory chip fab now on hold
• Corporate segment: In Q4, corporations to show softness as IT gets rationalized in macro environment
• Nehalem processor: Intel started shipping Nehalem processor, announcement coming in November
Intel updated its processor pricing list with low-cost quad-core and Core 2 Duo desktop processors. A new Celeron D model was also listed.
Intel lists the Q8200 at $224, one of the least expensive quad-core chips that the company now offers. The venerable Q6600 is the only Core 2 Quad that is less expensive.
The 45-nanometer processor has a core clock speed of 2.33GHz and 4MB of cache memory. This is a relatively small amount of cache memory as most Intel desktop quads offered now come with 6MB, 8MB, or 12MB of cache memory. Generally, the more cache memory the better the performance.
The chip has a front-side bus speed of 1333 MHz. The front-side bus carries data between the processor and other silicon.
Intel also shows a new E series Core 2 Duo processor. The E5200 is priced at $84, the lowest-cost Core 2 Duo chip on the list. It has a core clock speed of 2.5GHz, 2MB of cache memory, and an 800MHz front-side bus.
Intel also lists a new Celeron D processor for $53. The 450 slots in above the current 440. The 450 runs at 2.2GHz, has 512K of cache memory, and an 800MHz front-side bus.
The Intel processor pricing list was updated on August 31.
Sun Microsystems made the Olympic cut. Sun will provide server technology using Intel quad-core processors for NBC's Olympic coverage.
(Credit:
Sun Microsystems)
The technology platform will enable live events to be streamed online to NBCOlympics.com during the Beijing Olympics, which take place from August 8-24, Sun and NBC said Monday.
Intel quad-core Xeon processors will power a total of 160 Sun Fire servers that will drive NBC's Web site, according to an Intel statement. Sun Fire X4150 and X4450 servers will be deployed, according to Sun.
The X4150 servers are offered with quad-core Xeon processors such as the Xeon E5440 (2.83GHz, 80 watts) and the Xeon X5450 (3.0GHz, 80W). The X4450 comes with Xeon 7300 series quad-core processsors such as the Xeon L7345 (1.86GHz, 50W) and Xeon E7340 (2.40GHz, 80W).
In addition to live streaming, the platform will provide video archives of completed events, plus blogs, live chat, and athlete profiles based on approximately 2,200 hours of live streaming Olympic broadband video coverage of 25 different sports on the site.
"Sun has worked hard to architect a powerful, energy-efficient platform for NBCOlympics.com that will rapidly scale for hundreds of millions of sports fans," Peter Ryan, Sun's executive vice president of global sales and services, said in a statement.
