This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Microsoft Challenges Apple -- Intel Wins

Stocks in this article: MSFT AAPL INTC

NEW YORK ( TheStreet) -- In reaction to Apple's (AAPL) stunning new dominance of the "PC market" with the iPad tablet, Microsoft (MSFT) has a cunning plan. It's going to blur the lines.

What Windows 8, the coming version of its operating system, is all about is having one OS that runs on a desktop, a laptop, a tablet or a phone. With its Metro interface, designed for touchscreens, the idea is to challenge Apple's citadel directly from the Microsoft castle.

Guess who the winner is most likely to be? Intel (INTC).


Intel's latest chip, dubbed Ivy Bridge, is aimed at mobile and gaming markets. It uses much less power and handles graphics much better than earlier designs.

Most analysts are comparing it favorably to what long-time rival AMD (AMD) offers, but I suspect Intel has a bigger goal here.

The fact that "fab-less" companies -- firms that design but don't make their own chips -- like Nvidia (NVDA) and (now) AMD have been eating Intel's lunch for years must hurt. The fab-less win by getting closer to customers, by designing around their needs, and by making custom runs for specific products, rather than by expecting product makers to design around their latest-and-greatest.

Their greatest success has been among Chinese OEMs, for whom they deliver complete designs, with sell-through guaranteed, rather than just chips and software.

But what if there were just one OEM to please?

The Apple iPad presently uses a Samsung-made chip based on ARM technology. The design is built around power efficiency, and the heart of the new iPad is its snazzier graphics, perfect for gaming.

For Apple, the problem with that is that Samsung is a direct competitor. The two companies face off all the time, not only in stores but also in court. Samsung has risen in power thanks to its embrace of Google Android, and Apple hates Android with a passion.

Meanwhile, Intel is interested in becoming a foundry for Apple and Intel is already producing the central processor for Apple's desktop Macintosh line.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs