Consumer electronics chip markets don't favor the small...
By Tom Foremski - April 11, 2005
Wireless networked handheld multimedia devices are clearly in our future, and our scoop last week about Apple choosing Broadcom’s Alphamosaic chip highlighted an issue that faces smaller chip companies--independence.
Alphamosaic, based in the United Kingdom, was acquired by US communications chip giant Broadcom in September for about $125m. Alphamosaic had raised $9m in a round just five months prior to the sale. That was a nice turnaround of capital for the VCs but it was also likely that Alphamosaic did not have much of a choice.
That’s because companies need a lot of intelectual property (IP), in the form of chip functions, to play in the digital consumer electronics market. As more and more functions get integrated onto a chip, the cheaper the consumer product. In the consumer digital space that means you need as much wireless, video, image, audio processing, as you can fit on the chip. Then you need cellular, and room for other, future functions too.
The Alphamosaic chips packs a lot, but probably not enough for a large electronics manufacturer such as Apple. But, by being part of Broadcom, which has all the communications IP, etc, the future offers possibilities of further integration. This brings up the question of whether smaller chip companies can compete long-term in consumer electronics markets by remaining independent. The first ones to land larger dance partners will be in a better position than those without, I would think.
Convergence below, divergence above
Interestingly, as more convergence occurs on the chip—there is increasing divergence occurring in the consumer devices. A PC is used to play a DVD, play games, play music, and view photos. Now each activity has its own product device available, and now some are becoming portable and wirelessly connected.
And with more wirelss conectivity, it’s all moving towards less of a PC centric model than ever before, less need for a PC or Mac in order to use these devices.
Is this the future personal computing platform? Fragmented into applications married to devices, and sharing a common communications platform--instead of the same hardware/software platform.
Related stories
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- Could a multimedia iPod allow Apple to dominate movie and TV online sales? [Read]
- PSP-Pod? Could Sony's latest mobile gaming system beat out Apple's forthcoming multimedia "mPod"? [Read]
By Tom Foremski - April 11, 2005 | Permalink
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Comments
Quant Jock on Top 50 Silicon Valley Influencers: Foremski at 28 Beats Tim O'Reilly and Top Journalists
This list has nothing to do with influence but attention. There are many people who I know who are influential.
The best influencials are the one's who are invisible.
Half those guys are idiots on the list. Tom: I wouldn't be proud to be on that list.
Tom Foremski on Plastic Should Be The Darling Of the Global Green Movement
Wayne: Responsible use of plastic will prevent littering and prevent it from harming animals. Plastic is a very inert substance which means it doesn't react with other substances which means it doesn't release its carbon. Sequestering carbon for many thousands of years is a good thing and I feel that plastic has received a bad rap for the wrong reasons.
Wayne on Plastic Should Be The Darling Of the Global Green Movement
Mr. Foremski,
I'm not the best informed scientist concerning plastic, for I am only a high school junior, and it is a very reasonable refutation you have delivered pertaining to carbon emmissons. It would seem better to implement more plastic of some sort, in by creating a material that would stop carbon emmissions, we have reduced carbon pollution and wallah! Problem solved. It would also seem to solve a case scenario with the ammount of trees cut down by allowing an alternative to "
Tom Foremski on 2009: The Year Of The Great Repression
Ka Fung: I can't speak for the author. As for being "too large to fail" then that should qualify for nationalization since it would socialize the profits as well as the losses of such institutions, instead of just the losses.
Ka Fung on 2009: The Year Of The Great Repression
I'm curious what your stand is on the concept that an institution such as a Bank can be "too large to fail." A little disclosure, I think the idea is a little silly.
Great article. I'm curious, though, I don't think the author mentions the $750B stimulus that Obama wants to put into play (some are saying it'll be at least February before they attempt to get it signed now?). Was this an intention (it didn't get signed) or omission?
Tom Foremski on Plastic Should Be The Darling Of the Global Green Movement
Susan: I don't have any investments in anything except this web site. Plastic is very inert, it doesn't react with much at all, which is why it is very good at trapping carbon for thousands of years. Biodegradable plastic returns carbon to the environment very quickly in the form of carbon dioxide. Biodegradable might be better renamed "carbon-returnable."
There is no comparison between the production of plastic and the production of nuclear energy, which is very harmful to the environm
Susan on Plastic Should Be The Darling Of the Global Green Movement
Biodegradable plastic is a good solution but you should really educate yourself on the problems with plastic created from oil, it's effects on human hormones the amount of time it stays around breaking down into smaller and smaller bits. The amount of plastic actually recycled. Plastic is a human horror. the only reason I could imagine anyone making your statements is if they were invested in oil based plastic and blind to reality through human greed. Do you also support nuclear power? Just b
Tom Foremski on Plastic Should Be The Darling Of the Global Green Movement
Mroy: The carbon content of plastic is quite high. Plastic is made from polymers-- long chains of carbon and hydrogen--the basic building blocks of oil.
Plastic can be made from vegetable oils, anything that can provide those carbon-hydrogen chains. Fossil fuel oil is the most easily obtained and it doesn't compete with food supplies.
Mroy on Plastic Should Be The Darling Of the Global Green Movement
Can you please tell me the carbon content of plastic.
Peter on Four Years Later GMail still in Beta . . .
Chrome went out of Beta pretty quick though - didn't that supposedly have to do with Google wanting to package it with PC's, but manufactures not wanting to do so when it is in Beta??
James on Saturday Post: Stemming Deflation When Thrift Is The Answer . . .
If we're going to use drug analogies, what about alcohol? Going cold turkey with alcohol gives you the DT's which can kill. You can't end up healthier by dying in the process.
James on FutureWatch: The End Of The News Aggregators And The Future Of News
This makes complete sense, but isn't it true of much of the high-quality online content AND services we currently get for free? For example, YouTube, or Facebook. Everyone's scratching their heads trying to work out what the business model for these services is - why they're worth the massive prices paid for them. YouTube and advertising don't sit well together, Facebook has already struggled with its attempts to mine its customer base for marketing purposes. The answer is subscriptions,
Barry on Searching for search on the iPhone - where is it?
Here's another missing item that's part of Blackberry but, sadly, missing from iPhone: Telephone number recognition. No matter where there's a phone number entered on a Blackberry (contacts, contact notes, notes, calendar - literally anywhere) the Blackberry recognizes that it's a phone number, underlines it and lets you call with the push of a button. That beats going to my iPhone calendar, memorizing my next appointment's number, exiting calendar, entering phone, calling up the dial pad and
Darryl on Shrinking Mass Media Masses At Googleplex
Tom - I agree with you on the severity of the issue of misinformation and the problem that the current business models, offline and online, do not support professional journalism. It is surprising to me that I find few people who share this concern or line of thinking.
It seems to me that the lack of a supportive business model is the result of the temporary situation we have found ourselves in these last 10 years or so with the expectation that content on the internet will be free an
Tom Foremski on Saturday Post: Stemming Deflation When Thrift Is The Answer . . .
Rob: Exactly. That's why were are doomed to a long, drawn out, recession. It's always better to go "cold turkey." As a former nicotine fiend I know that quitting through small amounts of nicotine in the form of gums or patches was always much more painful and difficult than the short, sharp, shock of the reality of life without nicotine. We need to get off of the addiction to inflated asset prices, and we shouldn't prop them up. Of course, easier said than done. As a nicotine addict I always
Rob Hudson on Saturday Post: Stemming Deflation When Thrift Is The Answer . . .
But what if writing things down to market value is too painful? Politicians have to stay in power, after all?
Rob
stevem on Searching for search on the iPhone - where is it?
There's actually a wonderful search app: unfortunately you'll have to jailbreak the phone to get it. It's called 'search' (strangely enough...) and is available through the Cydia installer.
C'mon, even the other Steve has a jailbroken iPhone...
Title Insurance Nicaragua on The State Of VC Funding In Southern California
It would be nice to see some of your commentary, even if you weren't able to go. I have a friend who is involved in the bay area and it sounds like things are tight as one would expect but for some reason he doesn't seem too sad about it; apparently everything with the title of president, it's ok even if the future is unknown. Sam, Nicaragua.
Kevin McKinney on Plastic Should Be The Darling Of the Global Green Movement
Your basic point--that interment of plastic in landfills is the only currently-functioning "re-sequestration" program--has some validity, but your analysis is woefully incomplete, given that upwards of 90% of plastic is made from oil, and manufactured through an energy- (and thus, emissions-) intensive process.
And yes, bio-degradable litter *is* less of a problem. See this account:
htt
Tom Foremski on Let's Take A Lesson From The Chip Industry: Turn The Big 3 Auto Makers Into Car Foundries . . .
Thanks Carol. Coming from you that's a seriously great compliment. I don't know how to get it in front of anybody, I'm hoping that if you have a better mouse trap the world will beat a path to your door :-)