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It's apps not OS's

I don't see that ARM will lose all it's markets. Mobile phones and peripherals markets where 3rd party apps aren't as important and cost and wattage issues dominate. Multicore makes sense given disparate data input streams, I don't see Intel getting into these, at least not without serious improvement in battery technology.

But there are plenty of mobile applications coming up (and current applications which could be used more mobile) where power consumption is valuable as it allows portability, but not as important as having access to desktop quality apps type functionalitiy. For instance, in the web-tablet market, ARM-based processors lack oomph and they need a dedicated software fork to keep the browser up-to-date. Much easier to use x86 and plug in standard Firefox.

And having multiple OS options, is not the same as having compiled out-of-the-box applications ready to stream or run on a portable device. Multiple OS is a valuable option to manufacturers as it allows development flexibility and control, but not to users who just want to flick and go.

It's not to say you won't have an x86 core with ARM-containing support chips in key peripherals such as DSP but it's the apps that drive the CPU, not the other way about.

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