Intel (INTC) Continues to Miss the Mark in ARM, Other Areas

On Monday, Mark Moskowitz, JP Morgan IT (NYSE:JPM) hardware analyst, lowered his 2011 PC unit estimates from up 9.5% year to year to up 7.0% year to year due to several reasons.

He attributed the lower estimates to "stalling PC demand in China, weak global consumer PC demand, demand leakage to tablets, an expected deceleration in commercial PC growth, and the elongation of the useful lives of PCs.

"In addition, the top four PC OEMs (over 50% of total PC demand) have all recently missed and/or lowered guidance, while a few notebook ODMs recently lowered 1Q11 shipment estimates. As a result, we believe Intel is at risk of missing the midpoint of its 1Q11 revenue guidance."

The Atom was Intel's first misfire. I noted back in January 2009 that Intel (NASDAQ:INTC) lost as much a $1 billion is misjudging the success of the netbook and switching production from more lucrative notebook chips like the Penryn to make up for a shortfall in Atom chips.

Companies which are or have been ARM licensees include Alcatel (ALU), Atmel (ATML), Broadcom (BRCM), Cirrus Logic (CRUS), Digital Equipment Corporation, Freescale, Intel (through DEC), LG Group, Marvell Technology Group (MRVL), NEC, Nvidia (NVDA), NXP , Oki, Qualcomm (QCOM), Samsung, Sharp, ST Microelectronics (STM), Symbios Logic, Texas Instruments (TI), TSMC (TSMC), VLSI Technology (VSLI), Yamaha and ZiiLABS.




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Buy Qualcomm (QCOM) on Nokia's (NOK) Microsoft (MSFT) Deal Says Credit Agricole

The realization of the tremendous benefit Qualcomm (NASDAQ:QCOM) gets from the decision by Nokia (NYSE:NOK) to use Microsoft's (NASDAQ:MSFT) Windows Phone 7 platform for the smartphones is growing, and Credit Agricole analyst Srini Pajjuri is the latest to encourage investors to buy the company.

According to Pajjuri, after industry checks he sees Qualcomm having a head start of about a year over competitors Broadcom (BRCM) and ST Microelectronics (STM) and Texas Instruments (TXN) in supporting Windows Phone 7.

Specifically noted by Pajjuri was support for software and baseband drivers, as well as "other peripherals such as audio and other interfaces," according to Barron's.

Separately, the announcement by Qualcomm it will offer the Snapdragon 8060 chip for tablets is good news for the company as well, as it won't include a baseboard modem in it, which should generate more sales.

Credit Agricole raised their rating on Qualcomm from "Underperform" to "Outperform." They also raised their full year revenue estimates from $13.71 billion to $13.86 billion. Full year EPS estimates were boosted from $2.94 to $3.02.