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Last updated: Friday, September 11, 2009

The inside of computers has been Intel’s territory, as the world’s biggest maker of microprocessors reminds consumers with its “Intel Inside” campaign. The cell phone’s guts have been the domain of Qualcomm. As the cell phone becomes more like a computer and the computer more like a cell phone, it was inevitable that the two chip makers would clash. Intel wants to get inside smartphones, and Qualcomm, one of the largest suppliers of chips for wireless phones, wants to get into small notebook computers. “Intel is trying to come down from the computer and bring their software ecosystem along,” said Qualcomm’s chief executive, Paul E. Jacobs. “We’re trying to go up from the phone and build the software ecosystem.” Qualcomm — which sells about 22 percent of all chips used in wireless devices, including the iPhone, BlackBerry Storm and T-Mobile G1 — believes it has never been better situated in its 24-year history to break into the market for computing devices. PCs are evolving into tablet PCs and small laptops, essentially big smartphones that are always on, always connected to the Internet, with all-day battery life — in short, very much like a large iPhone or BlackBerry. Qualcomm calls the devices smartbooks because the design resembles a large smartphone. Mr. Jacobs sees his company at the center of an industry that is driving the most cutting-edge innovations, as seen in devices like the iPhone and BlackBerry Storm. “That energy is now coming out of the phone industry,” Mr. Jacobs said. “The PC became so standardized that the degree of innovation was not the same as what you see in the phone space.” Intel, whose revenue is about triple Qualcomm’s, disagrees. “As mobile devices become smarter, with PC-like performance, computer and Internet capabilities, this is Intel’s strength,” an Intel spokeswoman, Suzy Ramirez, said. Qualcomm is counting on its Snapdragon chip…

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Two Chipmakers Heading for Same Intersection

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