[…] the PC industry’s commanding chip maker, Intel, might do well to be alarmed by the computer chips being designed by Qualcomm, a maker of chips for cellphones. An engineer at Qualcomm’s gleaming corporate campus here demonstrated a palm-sized circuit board capable of displaying high-definition video. What was striking about the demonstration was not the quality of the video images, which is now commonplace. Rather it was that the microprocessor chip, called Snapdragon, drives the display with less than half the power of a similar chip recently introduced by Intel. Qualcomm designers say it will also cost less.
As the PC shrinks in size, it is on a collision course with the multifunction cellphone. Many expect the resulting impact to transform both devices and all the companies that make them. The new smartphones, always-on portable Internet devices that are part cellphone, part computer, change the rules of the game in computing because computing speed — at which Intel excelled — is no longer the most important factor. For a cellphone relying on a small battery, how efficiently a chip uses power becomes more important.