Friday, October 12, 2012

Apple Inc. (NASDAQ:AAPL) poaches veteran chip executive from Samsung

Chip designers are in great demand in the mobile devices segment and they are more valuable when they can be poached from rival companies.

Apple Inc.(NASDAQ:AAPL) and Samsung are locked in a bitter battle for supremacy in the fast growing smartphone segment and poaching of employees with crucial skills are rampant between the two companies.

The iPhone maker has taken on board from Samsung, Jim Mergard, who is a veteran in the chip industry having worked for 16 years with AMD before he was whisked away by Samsung.

Mergard is known for having played a crucial role in the development of a high profile AMD chip that carried the code name Brazos and was designed for low-end portable computers, the Wall Street Journal reported.

Chips are proving to be of vital importance for mobile devices as smartphones and tablets are becoming more powerful with faster and better processing speeds.

As storage capacities of mobile devices increase they are also commensurately adding processing speeds to it.

Faster networks like 4G or LTE also mean that the processors have to be powerful enough to be able to sustain those speeds and deliver a good experience for customers.

People are doing more with their mobile devices other than just making calls and texting. They have become indispensable accessories as they try to do everything on it, even tasks that were once done on laptops.

Samsung has traditionally been known for its memory technology but it has decided in recent years to focus more on developing microprocessors and related products.

Analysts said that Mergard's expertise could be put to more profitable use in Apple's PCs.

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