INDUSTRY NEWS

22 December 2008

Processor vendors fighting for UMD market control

The market for ultra-mobile devices (UMDs) is becoming a "processor battleground", according to ABI Research.

The analyst reported that processor vendors are playing a key role in the direction that the market takes, with x86-based processors from the PC world and ARM-based processors from handsets competing for dominance.

It suggested that UMDs stand in-between PCs and handsets in terms of power, size and function, meaning that both processor technologies will need to market their respective solutions in order to acquire the larger stake.

Philip Solis, principal analyst at ABI Research, suggested that x86-based processor vendors are in an excellent position because their products are compatible with PC applications that most people use today.

"However, as mobile internet devices (MIDs) start to surpass netbooks in shipment volumes, ARM-based solutions will be in a better position," he added.

Earlier this month, a poll of telecoms analysts, conducted by news agency Reuters, revealed that most expect mobile phones sales will shrink at their fastest ever rate in 2009.

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