Google Eyes Processor Designing for Mobile Market

The changes in the marketplace – which are quickly riding on the ever accelerating development and use of mobile devices – has Google seriously investigating processor manufacturing, according to a recent article published on the Bloomberg website. The article indicates that Google – already a dominant force – and their new interest in this market, may have the super-power semiconductor developer, Intel feeling “threatened by the market’s shift to mobile devices.”

The design and development of  their own server processors – assisted by ARM Holdings Plc (ARM) – is a current  field that Google is considering using for a new game, according to the article. The article states that Intel currently “controls more than 95 percent of the market for chips in servers that use personal-computer processors.” Google’s move into this marketplace would be very “challenging and costly“, according to the article, since they gain revenue from “selling Internet ads and other online services.

Patrick Wang, a New York-based analyst at Evercore Partners Inc, was quoted in the article to say, “Just showing willingness to shift away from Intel might help pricing for Google (GOOG) and prompt other Internet companies, like Facebook Inc. and Amazon.com Inc., to do the same.” Wang continued to say in the article,
Google could be doing this for price negotiations. They don’t have to do it — they just have to talk about it.

Read more about this predicted shift in the marketplace and what Google had to say in the full article HERE on the Bloomberg website.

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