Burgeoning Tablet, Smartphone Markets Benefit, Challenge Intel

Intel is yet to be much of a player in the booming tablet and smartphone
spaces, a concern for industry observers in the long term. However, for now the
burgeoning markets are helping drive demand in some of Intel’s traditional
businesses, and company executives continue to promise a strong presence in
both device segments as 2011 rolls on.

During
a Jan. 13 conference call with analysts and journalists announcing the chip
maker’s record fourth-quarter and full-year numbers, CEO
Paul Otellini said Intel will become a much larger player in both tablets and smartphones. In tablets, Otellini said he
expects a host of Intel-powered devices to hit the market this year.

A
key differentiator for Intel over rivals who use ARM
or MIPS designs is that Intel’s Atom
platform can run Microsoft’s Windows 7 operating system, Google’s Android and
MeeGo, jointly developed by Intel and Nokia.

"By
designing Atom-based tablets, [OEMs] have the opportunity to run multiple
operating systems on it, which I think is unique to Intel," he said.

Otellini
also reiterated that he expects smartphone designs powered by Intel technology
to hit the markets this year.

Intel had a record fourth quarter that topped off a very strong 2010 that saw it
bounce back from the global recession thanks in large part to its enterprise
business, which helped buffer it against weakening consumer PC demand. In the
fourth quarter, revenue came in at $11.5 billion — up 8 percent over the same
period in 2009 — with net income hitting $3.4 billion, a 48 percent jump.

For more, read the eWeek article: Intel Sees Benefits, Challenges in Tablets, Smartphones.