Companies to collaborate on future products

Jun 24, 2009 06:27 GMT  ·  By

Confirming earlier reports that surfaced on the Internet, Intel and Nokia have jointly announced a technology collaboration that will be at the base of a new class of Intel-based mobile computing devices and chipset architectures. Despite previous reports, the announcement made by the two leaders in their respective fields didn’t provide details on an upcoming Nokia-developed device that would be based on Intel’s future chips. According to the agreement between the two, the collaboration is set to spawn new devices that will provide users with support for a full range of communication channels.

“Today’s announcement represents a significant commitment to work together on the future of mobile computing, and we plan to turn our joint research into action,” Kai Öistämö, executive vice president, Devices, Nokia, said. “We will explore new ideas in designs, materials and displays that will go far beyond devices and services on the market today. This collaboration will be compelling not only for our companies, but also for our industries, our partners and, of course, for consumers.”

Although a report on Bloomberg that surfaced earlier this week indicated that Intel would become a supplier of chips for its new business partner, the official announcement coming from the two companies didn’t deliver any specific details on upcoming devices. However, according to the agreement between the world’s leading chip maker and the world's leading vendor of mobile phones, Intel and Nokia will collaborate on several open-source mobile Linux software projects, while Intel is said to acquire a Nokia HSPA/3G modem IP license for use in future products.

The benefits of the much-hyped collaboration will provide Intel with the means to further expand its x86 dominance, enabling its processors to run on a wider range of devices. Intel has actively promoted its intentions to break new barriers and design processors for other market segments. Landing a collaboration with Nokia, the world’s leading vendor of mobile phones, will allow Intel to increase its presence in the fast-growing smartphone market.

As far as a Nokia-designed device that will be powered by Intel’s technologies is concerned, Intel’s Anand Chandrasekher said that such details would become available when the two companies would be ready for such an event. In addition, it appears that the collaboration will have no effect on Nokia’s current relationships with its ARM partners. Taking that into consideration, rumors of a Nokia netbook are still somewhat far-fetched.

It's still early to say how the collaboration between the two industry giants will affect the future of computing or the mobile segment. However, it's clear that Intel has a lot to gain from having Nokia as a partner, considering the mobile vendor's market position.