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Its not about what Micro-processor can and what Micro-controller cannot.
The difference is that
> Controller is a customized version of Processor + Memory + Peripherals. A specific controller may be suitable for one application , but not for the other. Whereas Processor is generic, it can be used for any application by interfacing the required memory and peripherals.
> So controllers are used for small specific tasks as in embedded systems and Processors in a more generic system such as PCs.
> Processors work on higher frequency, whereas controllers use low frequency.
Basic difference between microprocessor and microcontroller :-
Microprocessor is an IC which has only the CPU inside them i.e. only the processing powers such as Intel’s Pentium 1,2,3,4, core 2 duo, i3, i5 etc. These microprocessors don’t have RAM, ROM, and other peripheral on the chip. A system designer has to add them externally to make them functional. Application of microprocessor includes Desktop PC’s, Laptops, notepads etc.
But this is not the case with Microcontrollers. Microcontroller has a CPU, in addition with a fixed amount of RAM, ROM and other peripherals all embedded on a single chip. At times it is also termed as a mini computer or a computer on a single chip. Today different manufacturers produce microcontrollers with a wide range of features available in different versions. Some manufacturers are ATMEL, Microchip, TI, Freescale, Philips, Motorola etc.
Microcontrollers are designed to perform specific tasks. Specific means applications where the relationship of input and output is defined. Depending on the input, some processing needs to be done and output is delivered. For example, keyboards, mouse, washing machine, digicam, pendrive, remote, microwave, cars, bikes, telephone, mobiles, watches, etc. Since the applications are very specific, they need small resources like RAM, ROM, I/O ports etc and hence can be embedded on a single chip. This in turn reduces the size and the cost.
Microprocessor find applications where tasks are unspecific like developing software, games, websites, photo editing, creating documents etc. In such cases the relationship between input and output is not defined. They need high amount of resources like RAM, ROM, I/O ports etc.
The clock speed of the Microprocessor is quite high as compared to the microcontroller. Whereas the microcontrollers operate from a few MHz to 30 to 50 MHz, today’s microprocessor operate above 1GHz as they perform complex tasks.
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