In a tie-up which could have far reaching effects on working of mobile device Industry, Nokia-world’s no.1 cell phone maker and Intel-seller of majority PC chips has announced a tie-up covering chips, hardware, and software for mobile devices.
The companies under their agreement would focus on joint-development of new chip architectures and software’s for mobile devices.The alliance would also see Intel taking over the Nokia’s HSPA/3G modem IP license for use in future.
Nokia is currently suffering a set-back from the recent rise in market share of Smartphone players like HTC, Apple-iPhone and palm-pre unlike previous competition faced mainly from Motorola and Sony Ericson. The move could be a strategy to capture higher market share in Smartphone segment and by aligning with Intel, Nokia can be rest assured of a superior product from its fold .
Intel through this deal is looking at a re-entry into the smartphone segment as earlier it sold a business manufacturing ARM-based chip series for Hewlett-Packard iPaq. The recent success of palm pre and ‘iPhone 3G S’ showcases the consumers need in acquiring fast processing speed on handhelds and the same has attracted the attention of the chip major.
Nokia earlier announced its intention to enter laptop market, this deal could be a pre-cursor for larger alliance and may help Nokia’s case in attracting a bargain in between both the products. The deal between two giants also tells about their likely perception of saturation in their particular industries.
The alliance results may however be doubted by critics as both the companies have not divulged any further information regarding the tie-up. Even then tie-ups of such magnitude could very well help in converging the PC experience onto mobile devices.
