Intel Corporation (INTC), QUALCOMM, Inc. (QCOM): The Sleeping Giant Wakes

Even so, it is widely felt that the waking giant will struggle to seize control of this end of the chip spectrum. Having had only small successes in breaking into it of its own accord it acquired German cellular chip company Infineon Technologies in 2010 while investing heavily in its own Atom chip technology. Indeed, the latest iteration of the ultra low power Atom processor is thought to be so competitive that at its launch earlier this year, INTC stock rose by 25%.

Some argue that there is still room for Intel to regain its dominance because of the diversity of the cellular chip market. Due to its size the company believes it can alter the market by sheer weight, as it has in PC and laptops over the last two decades. In reference to the way it used to work in PC’s, Intel spokesman Bill Calder is reported as saying, “we standardize the ecosystem.”

Some argue Intel has done just this with the development of PC’s and laptops over the years. Oregonlive.com suggests that in its traditional market “it told PC-makers how to make the computers and sold them the chips to do so.”

Will Intel dominate in cellular as it has for so long the rest of the industry? Only time will tell. Size matters and if the right resources can be brought to bear, the company has the ability to be the giant in this relatively new field that it has been in its traditional markets.

The article The Sleeping Giant Wakes originally appeared on Fool.com and is written by Mandy Seay.

Mandy Seay has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel and Qualcomm. Mandy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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