Intel and Nokia do it again: Allied for the 3rd time in a decade

For the third time in just a decade, the leaders in chipmaking and mobile manufacturing join forces to form a formidable alliance. their goal the same, is to create a revolutionary wireless device. Success in this venture would create a stir in the world of tech.

Both the giants hope that their third time is the key. After two aborted attempts over the decade to collaborate on fabricating wireless devices, the world's largest computer chip manufacturer Intel and the largest mobile phone maker Nokia are at it again. they are embarking on a "long-term partnership" to create mobile devices that combine high performance computing with high-speed wireless communication. As part of this alliance, Nokia will purchase Intel chips and Intel will license Nokia's Mobile phone radio technology.

This collaboration will extend even to the softwares that will run on these devices. These include Intel's Moblin and NOkia's Maemo OSes.

"Nokia and Intel share a similar technology vision," said Anand Chandrasekher, senior vice-president and general manager of Intel's Ultra Mobility Group.

In a June 23 press conference announcing the deal, the companies said little about the kinds of devices they're planning. But if they succeed, the alliance could broadly reshape the computing and communications industries. Nokia has been trying to expand beyond its core mobile-phone business into other types of handheld computers such as netbooks, while Intel for the past decade has been looking to challenge chipmakers Qualcomm and Texas Instruments in the fast-growing market for advanced mobile devices.

While slim on details, Nokia and Intel hinted that they may attempt to create entirely new categories of devices. In a press release, Intel and Nokia said the mobile products will move "beyond" existing wireless computing devices, including smartphones, netbooks, and notebook PCs. Intel has been trying to create a new class of pocket-sized products it calls mobile Internet devices, or MIDs. Nokia has offered what it calls an "Internet tablet" for several years but has not gained much traction with the device.

"This collaboration will likely lead to a class of device…that recognizes the context of its user's environment and bends to its user's needs," Kevin Burden, a practice director at consultant ABI Research, wrote in a research note.

Intel has been trying to emulate its competitors by offering complete packages of processors and such related products as flash memory and modems that handset makers can more easily integrate with their devices, thereby getting finished products to market more quickly. As part of that effort, the Santa Clara (California) chipmaker has been working to improve the performance of its low-cost, wireless-friendly Atom processor while lowering its overall energy consumption. The alliance with Nokia gives Intel yet another platform in which Atom could be used.

"The big takeaway for Intel is, they've got another radio and communications standard they can use with the Atom," Gartner (IT) analyst Leslie Fiering says. "It could increase its attractiveness in communications devices."