April 4, 2008
Intel Makes a Move into the Cellphone Chip Business
Analysis of:
Intel Makes Strides in Mobile Devices | online.wsj.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: What is a MID? Mobile Internet Device? I like MIP; Mobile Internet Phone or Mobile Internet Platform.
Analysis: It looks like Intel’s current attempt to get into the handset biz may finally work. The telecom industry is no longer a voice only industry but a total communications and information industry.
Since the mid-1990s the telecom industry has been slowly transforming from a voice only business to a total communications and information services business. In order to support this transformation, the telecom industry has been evolving its technology to support video, music, voice, large file downloading and uploading, and Internet surfing. What has been needed is a terminal or device that a user can access these services. The access is easy when you understand the interface. What has been a set of continuing problems for device manufacturers in the wireless space are memory and processing power.
Intel brings experience and insight into the handset game now. Yes, Apple is already in the game now but frankly, Apple is a system integrator and not an innovator of computing power.
Intel’s perspective will be needed in order to continue to evolve the wireless industry. Yes, ARM has advantages over the Atom but we as consumers now have competition amongst the manufacturers. The advantage ARM has in terms of power consumption is no small advantage. The biggest and longest lasting challenge facing handset manufacturers since the 1980s has been power consumption. With the advent of multimedia in wireless we are now seeing massive power requirements. What is the point of having a handset when the battery only last 30 minutes or less?
I truly believe that we, consumers, only see the best out of manufacturers and service providers when there is competition. Intel’s entry into the handset game will spur new and better handsets. In fact the handsets may end up being referred to as MIPs and not MIDs.
I can only see an upside for consumers.
Analysis: It looks like Intel’s current attempt to get into the handset biz may finally work. The telecom industry is no longer a voice only industry but a total communications and information industry.
Since the mid-1990s the telecom industry has been slowly transforming from a voice only business to a total communications and information services business. In order to support this transformation, the telecom industry has been evolving its technology to support video, music, voice, large file downloading and uploading, and Internet surfing. What has been needed is a terminal or device that a user can access these services. The access is easy when you understand the interface. What has been a set of continuing problems for device manufacturers in the wireless space are memory and processing power.
Intel brings experience and insight into the handset game now. Yes, Apple is already in the game now but frankly, Apple is a system integrator and not an innovator of computing power.
Intel’s perspective will be needed in order to continue to evolve the wireless industry. Yes, ARM has advantages over the Atom but we as consumers now have competition amongst the manufacturers. The advantage ARM has in terms of power consumption is no small advantage. The biggest and longest lasting challenge facing handset manufacturers since the 1980s has been power consumption. With the advent of multimedia in wireless we are now seeing massive power requirements. What is the point of having a handset when the battery only last 30 minutes or less?
I truly believe that we, consumers, only see the best out of manufacturers and service providers when there is competition. Intel’s entry into the handset game will spur new and better handsets. In fact the handsets may end up being referred to as MIPs and not MIDs.
I can only see an upside for consumers.
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