Intel fights for its future with smartphone deals

Chipmaker inks deals with Motorola, Lenovo to get foothold in elusive market (see video below)

1 2 Page 2
Page 2 of 2

"I don't get the sense anyone in the ARM ecosystem is up worrying that much, but they are keeping a very close eye on Intel's progress," he added. "From a big picture perspective, Intel has to succeed in this space to ensure a strong future in the client space.... This also bleeds into the server space, where ARM is building credibility."

While Moorhead contends that Intel's move into the smartphone market will make the company less dependent on PC sales, Olds said it's too early to tell if that's true.

"These chips will have much lower selling prices and margins than what they're used to," said Olds. "Volumes will need to be very high in order to pay off for Intel in a big way. We'll have to see how the market responds to these Intel-fueled devices and that's going to take some time to gauge."

Rob Enderle, an analyst with the Enderle Group, argued that Intel's new deals are a good indication that Atom chips will be big players.

"...It is competitive, but when dealing with an entrenched market you don't need to be just competitive, you have to be better enough to get the market to move," he added. "Intel can be competitive. The question is whether they can become better enough so that a market now dedicated to ARM will take a chance with x86."

Intel, according to Enderle, had no choice but to jump in.

"It helps Intel argue they are positioned for the future and not a vendor being obsolesced by new products," he added.

Want more on CES? See our roundup of everything you need to know from CES and our interactive chart of top CES product launches.

Follow our staffers live from CES in Las Vegas Jan. 9-12 on Twitter @Computerworld/CES or via our CES 2012 RSS feed.

Plus, check out our live blog from CES.

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at  @sgaudin, on Google+ or subscribe to Sharon's RSS feed . Her e-mail address is sgaudin@computerworld.com.

Copyright © 2012 IDG Communications, Inc.

1 2 Page 2
Page 2 of 2
9 steps to lock down corporate browsers
  
Shop Tech Products at Amazon