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Intel aims to be a powerhouse in mobile
Tech Business
Written by Daniel   
Wednesday, 01 September 2010 18:34

From Computer World

But it might take more than the recent acquisitions of McAfee and Infineon's wireless chip unit -- it might take a phone that can compete with the iPhone
Intel wants to be a force in the mobile computing world -- a fact that was made clear by the company's recently announced plans to acquire chip maker Infineon Technology's wireless division and security software provider McAfee.



But several analysts questioned whether spending billions of dollars on those two companies and others, and revving up the MeeGo mobile operating system in partnership with Nokia, can be enough to make much difference. Some say Intel has already fallen well behind the mobile curve and has a long way to go to catch up.

With the planned acquisitions of Infineon for $1.4 billion and McAfee for $7.7 billion and the 2009 purchase of mobile software maker Wind River Systems for $884 million, Intel likely will grow more focused on mobile, several analysts said. Those deals could help the company move beyond its primary role as a chip maker whose products are used in 80% of today's desktop and laptop computers but whose sales growth is nonetheless slower than smartphones and mobile devices.

"Becoming more vertical [in mobile] for Intel is about survival," said analyst Jack Gold of J.Gold Associates. "Intel knows it has to change with the times. The Internet of connected things means it's not just about the processor anymore. It's about connectivity -- hence the wireless acquisitions -- and it's about security to keep us safer when we are connected."

 

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