2009-06-24 04:47:37
By Maggie Shiels
Technology reporter, BBC News, Silcion Valley
The world's largest chip maker has teamed up with the world's largest mobile
phone maker to create what they say will be a "new exciting industry".
Intel and Nokia said their "technology collaboration" would deliver new mobile
computing products - beyond existing smartphones, netbooks and notebooks.
But both companies added it was still too early to talk about product plans.
The deal gives Intel its first real breakthrough in the multi-billion dollar
mobile-phone market.
"This collaboration will drive exciting new revenue opportunities for both
companies and shape the next era of mobile computing," said Anand
Chandrasekher, Intel's senior vice president of its ultra-mobility group.
Nokia's executive vice president for devices, Kai Oistamo said: "It will be
compelling not only for our companies, but also for our industries, our
partners and, of course, for customers."
"Brave new world"
Both companies said the partnership would centre around several open-source
mobile Linux software projects, including the Moblin platform for Atom-based
processors and the Maemo operating system developed by Nokia.
Intel will also acquire a licence from Nokia that is used in modem chips to
connect to third generation cellular networks.
Although Intel makes chips for Wi-Fi and WiMax networks, it has previously
lacked the technology to provide a complete technology package for portable
device makers.
In a conference call with reporters, neither company would not be drawn on what
any future products would look like.
"We will talk about products when we are ready to talk about products," said Mr
Chandraseckher
"With the convergence of the internet and mobility as the team's only barrier,
I can only imagine the innovation that will come out of our unique relationship
with Nokia. The possibilities are endless."
ABI Research says that last year a total of 1.2 billion mobile phones were sold
globally.
Mr Oistamo was equally tight-lipped on the subject of future products, but he
added: "We will explore new ideas in designs, materials and displays that will
go far beyond devices and services on the market today.
"The future is truly exciting and there is a lot of room here to redefine what
mobile is and what it can do as we create this brave new world."
"Wave of the future"
Intel's microprocessors are found in eight out of 10 personal computers, while
Nokia boasts around a billion customers but is not as big a player in the US as
it is in Europe.
The alliance could spell stiffer competition for ARM Holdings, which is one of
the biggest suppliers of chips in the cell phone marketplace.
Analysts welcomed the collaboration, which they described as significant for
both companies.
"Intel has really been trying to get a foothold in the wireless world in the
worst way," Will Strauss, principal analyst with Forward Concepts told the BBC.
"They know portability, mobility is the wave of the future. Nokia is the
world's biggest cell-phone maker in the world so getting a piece of Nokia's
business is a big deal.
"For Nokia its a way to get into notebooks and netbooks. They are not big there
and partnering with Intel as the largest manufacturer of chips will lend them
credibility in that market," said Mr Strauss.
Gerry Purdy, who is the chief mobile analyst at Frost & Sullivan agreed the
deal is a win-win for both Intel and Nokia. He added that while the first
product could be a year or so away, it should have the potential to shake up
the market.
"I believe this will impact the industry for many years to come and accelerate
the adoption of smartphones in the world. At the moment they are at 10% of
market share. I predict that will grow to 50-60% in the next five years as a
result of this partnership.
"The direction we are heading is more computing power. We are seeing some
exciting iPhone-like capability out there like graphics interactivity,
multi-touch, video, lots of multi-media and the like.
"All those things are exciting in the industry but they are not pervasive and I
think maybe this collaboration will help create that," Mr Purdy told BBC News.