Another one bites the dust…

The dust of disruptive innovation, of course. Just as Kodak failed to see the future of digital photography (the company invented it but did nothing) and handed the market over to others, so is Intel facing a similar issue with chips to power portable devices.

Om Malik does his usual masterful job of presenting the case:

If Qualcomm is a fearsome competitor in the Android ecosystem, Intel is locked out of the Apple ecosystem. Apple has bet the farm on its internal chip technologies such as the ARM-based A4 currently being used inside the iPad. In the iPhone, ARM is the architecture of choice as well. Microsoft has started working closely with Nvidia’s Tegra and RIM’s devices, too, are ARM-based. Last month Hewlett-Packard agreed to buy Palm in a deal valued at $1.2 billion, and with that its own OS that runs on ARM — not Intel-based — chips.

Malik points out the lessons of history and rightly notes that it is and was Intel’s “need” to stay with high margin products that has put it in a very bad competitive situation with mobile. Again, we have shareholder value being put above the future of the company, and this is a lesson that businesses seem to generally learn too late.

“To put it bluntly,” writes Malik, “it won’t be until next year that Intel will have a competitive offering on the market — an eternity in the mobile world.”

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