Intel fights for its future with smartphone deals
Chipmaker inks deals with Motorola, Lenovo to get foothold in elusive market (see video below)
Computerworld - LAS VEGAS -- With Intel finally breaking into the burgeoning smartphone market, analysts say the company is moving to defend its turf - and possibly even its future stability -- against an encroaching competitor.
On Tuesday, Intel CEO Paul Otellini told an audience at the Consumer Electronics Show (CES) here that the company has inked deals to provide its upcoming Atom chips to both Motorola and Lenovo for their smartphones. Intel has been virtually shut out of the lucrative smartphone arena, so this is a big step forward for the chipmaker.
It's also a major defensive move against ARM chips, which have dominated the smartphone chip market. And with more and more users depending on their smartphones for a lot of their computing needs, the PC market -- an Intel strong point -- has suffered as well.
"While Intel sells hundreds of millions of chips a year, there are billions of ARM chips shipped annually and they're being used in increasingly sophisticated devices," said Dan Olds, an analyst with The Gabriel Consulting Group. "If Intel doesn't respond to this threat and get a piece of this pie, they could eventually find their market share being consumed from the bottom up -- much like what Intel did to mainframe and RISC chip vendors."
Intel's news on Tuesday marked the company's first smartphone customers.
Lenovo, which is fairly new to the smartphone space, announced its upcoming K800 at CES; the smartphone was unveiled during Otellini's keynote address. The K800 will be the first smartphone to use Intel's x86 chip. Powered by an Atom Z2460 chip, it's set to be released in the second quarter of this year and will hit the China market first.
As for Motorola, which is a powerhouse in the smartphone arena, Intel inked a deal covering smartphones and tablets that extends for several years. The first Atom-powered Motorola smartphone is scheduled to be released in the second half of this year.
"Intel has been struggling to enter the smartphone market," said Patrick Moorhead, an analyst with Moor Insights & Strategy. "The deals with Lenovo, and especially Motorola, are a very positive step forward and demonstrate Intel's progress in this space. The next steps will be for positive independent phone reviews, plus app developers and carrier support, followed by launch and sell through."
Moorhead also pointed out that ARM has nearly 100% of the smartphone market. That means Intel's deals with Motorola and Lenovo mark Intel's first "credible shot" across its rival's bow.
- Is the 'quantified self' movement just a fad?
- Elgan: Voice, gestures dominate CES
- Windows 8 on ARM: You can look but you can't touch
- Google's Marissa Mayer says more women needed in tech
- Hands on: Sony Xperia Ion smartphone
- New Ford Focus Electric comes with smartphone app
- Insecure Android a myth, Motorola exec says
- For $1000, a chance for tech glory in Vegas
- Buyers hang on for cheaper, faster Windows 8 ultrabooks
- CES: Coming soon, drones for home and office
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Gartner 2013 Magic Quadrant for Enterprise Backup/Recovery Software See why CommVault was positioned as the #1 leader in Gartner's 2013 Magic Quadrant for Enterprise Backup/Recovery software for the 3rd year in...
- Forrester Report: CommVault is a Leader in Enterprise Backup and Recovery In this report, Forrester takes a deep dive into the evaluation criteria, how CommVault is positioned and the features and functionality that make...
- Forrester Wave for Enterprise Backup and Recovery Read this report to see how CommVault continues to outpace its competitors and why Forrester positioned CommVault Simpana as the top backup and...
- Architecting the Network of the Future Networks need to change, as does the way IT thinks about and manages them. In addition to reliability, IT must now add higher...
- Four Myths of High-Productivity App Dev Debunked Debunk the main myths surrounding high-productivity application development and how both platforms have overcome them.
On-Demand Webcast: 7 Reasons to Choose VoIP
Thinking about a new phone system for your business?
Be sure to watch this informative webcast. Steve Strauss, small business columnist for USA...
All Processors White Papers |