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Nokia-Microsoft deal hurts Intel smartphone plans

Agam Shah | Feb. 11, 2011
Plans to adopt Microsoft's Windows Phone 7 could directly affect Intel's efforts to ship Atom smartphone chips in volume, say analysts

Intel is disappointed with Nokia's decision, but a smartphone with an Intel processor will ship later this year, said Suzy Ramirez, an Intel spokeswoman. She declined to provide a specific time period or the vendor that would ship the smartphone.

"Intel remains committed to MeeGo and welcome[s] Nokia's continued contribution to MeeGo open source. Since day one, our strategy has always been to provide choice when it comes to operating systems, a strategy that includes Windows, Android, and MeeGo. This is not changing," Ramirez said via e-mail.

Nokia's apparent shift in OS focus might hurt Intel's smartphone efforts, but it's not a fatal blow, said Nathan Brookwood, principal analyst at Insight 64.

"Nokia's been losing share and Microsoft never had much share, this strikes me as a move of desperation," Brookwood said.

Intel still has other alliances with smartphone makers, so the opportunities are still there, Brookwood said.

The analysts agreed that the Nokia-Microsoft deal provides some clarity on the opportunity for MeeGo, which could find use in larger mobile devices such as tablets. Intel could still use MeeGo as it tries to gain more customers in that market, which is also dominated by ARM.

"It's pretty clear MeeGo is more about more advanced, mobile computing than just smartphones," Stofega said.

 

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