Microsoft Corp. (MSFT) said Wednesday its next iteration of the
Windows operating system will work with chips based on designs from
ARM Holdings PLC (ARMH, ARM.LN), a rival to the software giant's
longtime partner Intel Corp. (INTC).
The long-running alliance between Intel and Microsoft's Windows
system has grown harder to sustain as smartphones, tablet computers
and other mobile products become increasingly important sources of
revenue for tech companies. ARM-based chip technology has become
the standard for those types of products.
Wednesday, Microsoft said its upcoming version of Windows will
support ARM-based systems from Nvidia Corp. (NVDA), Qualcomm Inc.
(QCOM) and Texas Instruments Inc. (TXN).
It said Intel and Advanced Micro Devices Inc. (AMD) would
continue their work on low-power Intel-architecture designs that
fully support Windows. The lower power efficiency of Intel-based
designs is one of its primary hindrances compared to ARM in
tablet-type products.
Microsoft shares closed Wednesday at $28, down 0.3%, and weren't
active in after-hours trading. The stock has declined almost 10% in
the 12 months, while the broader market has climbed.
--By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com