Intel and Nokia cooperate on technology under new agreement

Intel and Nokia have announced an agreement to develop a new class of Intel architecture-based mobile computing device and chipset architectures. For Intel, this is a much needed endorsement of its Atom chipset and its applicability to mobile. For Nokia, it is an opportunity to explore new types of mobile broadband devices and ensure its smartphone offerings are not sidelined by manufacturers entering from the PC market. This is also an opportunity for both companies to align their software platforms and create a compelling open source platform which could rival today’s smartphone and netbook platforms. Here, Adam Leach, Device Principal Analyst at Ovum, comments on the agreement between the two companies:

Since Intel’s launch of its Atom family of processors, it has made no secret that it intends to make a serious play in mobile. The company hopes that taking a slice of the mobile device market will provide an engine for growth outside of its traditional PC and server markets. However, the current family of Atom chipsets is not suitable for use in handsets and instead Intel has developed a new market segment for larger form factor mobile internet devices (MIDs) positioned above smartphones and below notebooks. To reach further down into the volume part of the mobile market and start reaching the expanding high-end smartphone segment, Intel needs to produce a chipset which can match the power/performance ratio of processors based on the designs of ARM Ltd. This week’s announcement is a sign that at least Nokia believes that Intel’s roadmap is credible and that the company can, in time, provide a competitive offering against ARM-based alternatives.

This announcement follows Intel’s acquisition of Wind River, a supplier of operating systems for embedded devices. The Wind River acquisition has given Intel a significant foothold in embedded and mobile devices; it provides them with the expertise to ensure that its chipsets are optimised towards embedded devices and gives the company access to a wide range of existing Wind River customers in this space. Intel understands the strategic advantage of maintaining control of the software stack that sits above its processors; this acquisition is akin to Intel buying Microsoft in the early days of the PC market.

The agreement with Nokia continues Intel’s focus on software and strengthens its position. The two companies have agreed to cooperate on key open source projects and use these common technologies in Moblin (Intel’s Linux-based software platform for Atom) and Maemo (Nokia’s Linux-based software platform for its Internet Tablet products).

To date, Intel has focused on Wi-Fi and WiMax radio technologies. Intel will license Nokia's 3G modem technology. The announcement gives Intel the capability to produce 3G-capable chipsets that will make its products more relevant to the wider mobile market. It may also be the first sign that Intel is prepared to work with alternative 4G technology in addition to WiMax. It should be noted that this is not the first agreement between Nokia and Intel. In 2006, Nokia agreed to supply an HSDPA module for Intel’s Centrino platform; however, it did not result in any commercial products. The fact that the current agreement to supply HSPA modem technology is in the context of a broader agreement should increase the likelihood of commercial success this time.