Nokia to announce mobile chip deal with Intel today

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Nokia to announce mobile chip deal with Intel today

By CAROLINE GABRIEL

Published: 23 June, 2009

READ MORE: Intel | Nokia | Semiconductor

Nokia looks set to anoint Intel into the top rung of mobile chip suppliers, a long-held goal of the world's largest chipmaker. Intel will hold a news conference today, which according to news agency Bloomberg will concern a deal to put the Atom low power processor into Nokia mobile devices. Exactly what those devices will be remains to be seen - this may be about a new range, probably a Nokia 'smartbook', rather than mainstream smartphones, but even if this is just a toe in the water for the Finnish giant, it will represent a massive breakthrough for Intel, making it more competitive in mobility against ARM-based processor makers, especially Qualcomm and its Snapdragon smartbook silicon.

Nokia's diversification of its chip partnerships reflects the huge changes of the past two years, not only in its own strategy but in the dynamics of the mobile market. The devices sector is polarizing between low cost handsets and increasingly PC-like smartphones and what Qualcomm calls 'smartbooks'. These are an emerging class of shrunk-down netbooks optimized for ultra-low power consumption and wireless connectivity, and with a user interface closer to that of a smartphone. With Atom dominating real netbooks, the ARM/Linux brigade, led by Snapdragon, is seeking to define the smartbook category, and the Nokia-Intel agreement may well be focused on this area too. Nokia recently let slip plans to develop a new-look device that sat between a smartphone and a netbook, possibly drawing on its existing Internet Tablet range, but adding a 3G connection. That tablet has significance for Nokia beyond sales, because it represented an early and quite impressive, though fairly stealthy, entry into the new hybrid category, long before the word 'smartbook' was coined - in particular, it has been the main platform for Nokia to pursue its mobile Linux developments, using its Maemo-based platform, without muddying its Symbian smartphone waters. The current tablets use a Texas Instruments ARM-based processor but Nokia's dependence on TI has been waning, while signs of a closer relationship with Intel have already been seen, notably their collaboration on the oFono platform for open source telephony (Nokia did use an Intel chip in its shortlived WiMAX version of the tablet).

The successor to the current tablet, the N810, is understood to be imminent, but maybe too imminent to be the focus of the initial announcement with Intel. The 'N900' will reportedly carry many user interface and media features from the N97 smartphone, though keeping the 810's wide touchscreen, tablet format and slide-out Qwerty keyboard, and running Maemo5 (any Intel-Nokia partnership for smartbooks will involve decisions about Linux, and how to integrate, or choose between, Maemo and Intel's Moblin). The ultra-low power version of Atom is not expected until next year, while the N900 is slated to launch before year end.

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