The growing rivalry between ARM Holdings and Intel may have just gone up a notch.

According to a story on the website Computerworld, ARM has dismissed Intel as a legitimate threat in the mobile market. The company's lead mobile strategist for ARM Limited, James Bruce told Computerworld that there is currently no smartphone shipping with the Atom processor from Intel. As of today, he said, Intel is not competitor since there is nothing shipping with its processors.

On the contrary, Bruce said 95 percent of all smartphones have ARM chips. The tablet market is similarly dominated by ARM chips.

I'd be more surprised if companies did not want to play in the mobile market.... If you look historically, they've been talking about the mobile market for quite some time now. There's been a lot of talk, but I'm waiting very much to see a device ship, Bruce said.

This week, Intel took aim at ARM at an investor meeting. The company said it has no plans to go down the same path as some of its rivals, notably Nvidia, Qualcomm and Texas Intstruments, and use ARM processors to build a more mobile friendly chip. Instead, it will shrink its own processor, the x86, and make it more mobile friendly.

Intel has promised a phone to ship out with its Medfield processor as quick as this year. However, Bruce and the folks at ARM say the proof is in the pudding, and they won't believe it until they see it. Bruce told Computerworld that their strategy is best for the mobile market.

The key thing to keep in mind is that the mobile market is not a monolithic market with one solution fits all. ARM's partners are delivering many different chips at many different price points and capabilities that allow the ARM ecosystem to address the entire mobile market, Bruce said.

Intel and ARM have feuded over PCs as well. Earlier this week at the same investor meeting, Intel's Renee James said the upcoming version of Windows 8 running on ARM chips would not be able to run legacy apps. However, Microsoft quickly rebuffed that claim, saying nothing had been determined yet.

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