Intel faces increasing competitive threats

Intel chief Paul Otellini has identified emerging-market PCs and consumer electronics as key targets

Intel will face increasingly fierce competition over the coming years as it moves into new markets, new research predicts.

The chip giant will find itself battling with new competitors in addition to AMD and IBM as it expands beyond its traditional heartland of PC-centric processor technologies.

Intel chief executive Paul Otellini has identified ultra-mobile PCs, mobile internet devices, emerging-market PCs and consumer electronics as key targets.

"This gives the competition ample warning to prepare for Intel's onslaught," said Jim McGregor, principal analyst at In-Stat.

"Intel's expansion into emerging form factors and low-power products expands its list of competitors, particularly those in the Arm processor camp."

Research by In-Stat forecasts that AMD will shadow Intel's move into emerging form factors with accelerated processing units.

The report also expects IBM to continue pushing its Power processor architecture for servers and consumer electronics.

However, In-Stat believes that IBM may exit the semiconductor business within a decade due to high fab costs, competition and changing business models.

• In-Stat Report: Intel Competitor Line-up: Challenges to the Industry Leader