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Nokia and Intel Look to the Future of Mobile Devices


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By Andrew Berg 

Nokia and Intel’s recently announced partnership has raised the eyebrows of more than one analyst. Consensus seems to be building that the two companies hope to get out ahead of the competition on the emerging segment of mobile devices that falls somewhere between the smartphone and laptop.

“It is clear that both companies recognize the future collision of the mobile computing and telephony-centric environments,” commented Maynard Um, IT hardware and wireless equipment analyst for UBS.

Um noted that Intel has already developed a new market segment for larger form factor mobile internet devices (MIDs) which are positioned above smartphones and below notebooks.

The addition of Nokia’s HSPA modem technology to Intel’s Atom processor could provide the vital 3G constant connectivity that the company needs to be successful in the environment.

Kevin Burden, practice director for ABI Research, admits the details of the partnership are a bit sketchy, but also says it could lead to more innovation from the two companies, citing both company’s ambition to be “in the driver’s seat” in their respective industries.

“They both have a common goal, but they need each other. It's all speculation though because we don't know what they want to build,” Burden says.

However, Burden isn’t afraid to guess. “This collaboration will likely lead to a class of device beyond the current lineup of smartphones and portable computing devices, one that recognizes the context of its user's environment and bends to its user's needs," Burden said.

Qualcomm recently announced its plans to pursue a new category of mobile devices that it calls the “smartbook,” playing on the hybridization of smartphones and netbooks. Many believe that Intel’s Atom processor can be sized to fit into wireless devices, but Burden says that will take time.

Adam Leach, Principal Device Analyst for Ovum, thinks that Intel’s chipsets could give Nokia will a leg up on new entrants to the mobile device market.

“For Nokia this announcement also makes sure that it can compete on equal terms with PC and notebook vendors entering the mobile market with Atom-based mobile internet devices and netbooks,” Leach said in a statement.

More FirstNews 06/24/09:
•  iPhone, BlackBerry Miss Out on Adobe Flash’s October Release
•  Nokia and Intel Look to the Future of Mobile Devices
•  Ericsson Aims to Broker Deals 
•  Ericsson Leads Race – in Ocean, That Is
•  Continued Losses Expected at Palm 
•  Jobs appears closer to returning to work at Apple 
•  FirstNews Briefs for June 24, 2009


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