The world's biggest maker of silicon chips, Intel, which grew by putting chips most of the world's personal computers, is now facing an erosion of that market.
Profits are down 27% in the most recent quarter.
Intel still has revenues of $53bn but it is now worth less than Qualcomm, a much smaller rival that makes chips for phones and tablets which Dixons, as the Today programme heard on Thursday, were selling at a rate of five a second over the run up to Christmas.
Intel does not make these chips.
Steve Shakespeare, the consumer director for the UK and Europe at Intel, told Today business presenter Simon Jack that we are "seeing some significant changes in the overall landscape for computer devices in the market place."
The future is looking "very exciting" for personal computing, he insisted.
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