Monday, June 2, 2008

Second Time's a Charm?

Today the Financial Times reported that Intel is planning on getting back into the mobile phone chip market. Paul Otellini, CEO, has said that he believes that PC processor expertise that Intel possesses will be extremely beneficial due to the fact that smartphones are becoming more like computers. Back in 2006, Intel made an attempt in the mobile phone chip market, but ended up selling its product to Marvell.

I think that this could be a smart move for Intel, however they definitely face challenges. With RIM's BlackBerry and Apple's iPhone dominating the smartphone market, working with these two market leaders would have to be important to them.

And the fact that they are not the only company diving into this market could determine their success as well. An article in Reuters explains that Nvidia announced their plans to roll out a similar product, aiming at the exact same market as Intel. So Intel’s 2009 launch plan could pose a problem.

I guess we’ll just have to wait and see…

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