ARM has introduced a new processor, the Cortex-A15 which has a processing speed of 2.5 GHz. The new processor represents a 5x performance improvement over the previous-generation technology, which is keenly being looked as a technology multiplier for smartphones. ARM is a leading company in the smartphone processor market, in which the company hopes that smartphone companies will take advantage of the Cortex-A15 MPCore processor to run is various devices such tablets, digital home entertainment devices, wireless base stations and enterprise infrastructure.

The 2.5GHz Cortex-A15 processor offers to scalable solutions which include low energy consumption, high processing speed as compared to its competitors in the smartphone market and it allows smartphone companies to introduce graphics intensive application. However one of the major drawbacks is that ARM’ architecture microprocessors are currently incompatible with the major off-the-shelf server applications.

According to Wilkins, principal analyst at iSuppli, “It is also a considerable challenge to persuade CIOs to adopt and invest in a new server architecture that will require new platforms, new applications, and new skills to maintain.”

ARM licenses its core IP technology which means it is not the sole manufacturer of its chips. However in the recent past ARM has been able to establish successful partnerships with IT giants like ST Ericsson, Texas Instruments and Samsung Electronics. Such a partnership will enable ARM to penetrate a larger market segment and increase its revenue base.

According to ARM Executive Vice President Mike Inglis, “The Cortex-A15 MPCore processor will become the next major step along the industry’s energy efficient computing roadmap and open up a wide range of new application possibilities.

The major issues that ARM has to deal with currently are compatibility issues of its Cortex-A15 Processor which applications such as flash, Java, Linux and Microsoft. After these are resolved the Cortex-A15 Processor is keen to capture a larger market segment.