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Intel: Our Nokia Partnership Was a Mistake

By - Source: TechRadar UK | B 30 comments

Hindsight is always 20/20, right?

Following the announcement of their landmark partnership, Nokia and Microsoft have been acting like a pair of newlyweds and singing each other's praises. However, it seems one of the Finnish phone company’s other partners isn’t quite so pleased with the way its relationship with Nokia panned out.

Intel’s CEO Paul Otellini recently admitted that Nokia probably wasn’t the right partner for his company and said that the deal was partly to blame for the delay in its smartphone chips hitting the market.  

"In hindsight, Nokia was the wrong partner to have picked," said the Intel boss.

Speaking to investors, the Chief Executive promised that we’d see Intel-based phones from major players in the smartphone market in the first part of 2012. The company is said to be shopping around reference designs for the Meego-based phones it developed with Nokia to other manufacturers.

The company is also showing Google some love, as it demonstrated at an iPhone-like Android phone. PC World reports that the company also has reference designs for Medfield-based tablets (in 7- and 10-inch flavors).

Considering the likes of Nvidia, Samsung and ARM have already carved themselves a place in the market, Intel is quite late to the game as far as smartphones are concerned. However, the company is determined to focus on its own chips. When asked if there was a possibility Intel might produce ARM-based chips, Otellini said that though they have the license for it, it wouldn’t be in the company’s best interests because it would eat into Intel profits.

Further Reading

PC World: Intel Says 'Medfield' Smartphone Coming Early Next Year

(Get apps for your Symbian phone from our download section)

Discuss
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  • -9 Hide
    Anonymous , May 18, 2011 11:59 PM
    the first paragraph reads "Nokia and Microsoft," since when is intel = microsoft?
  • 5 Hide
    SethEffect , May 19, 2011 12:12 AM
    Read it again.
  • -2 Hide
    srgess , May 19, 2011 12:29 AM
    Eat into intel profit, thats so selfish. Can't wait to see a world witch the progress will be over the money.
  • 2 Hide
    Ogdin , May 19, 2011 12:51 AM
    srgessEat into intel profit, thats so selfish. Can't wait to see a world witch the progress will be over the money.


    I wouldn't hold my breath waiting for that to happen.
  • -2 Hide
    stuoke , May 19, 2011 1:22 AM
    Does anyone who actually owns stock in ARM know how much ARM gets for each ARM designed chip that is sold?

    Only one penny, that is it. How would that cut into Intel's profits?
  • 2 Hide
    Anonymous , May 19, 2011 1:41 AM
    @stuoke

    funnily enough ARM chips dont just go into smartphones, they go into ATMs and cars , TVs, set top boxes, microwaves... basically everywhere, even if thats just one penny, thats an awful lot of one pennies
  • 1 Hide
    Anonymous , May 19, 2011 2:18 AM
    @stuoke: ZOMG, ARM makes small, efficient chips that are cost effective for everybody from top to bottom, the horror!!!

    I guess Intel fanboys cheer when Intel rips them and everybody else off with their exorbitant prices. Yay!!! Intel made huge profits, I'd totally throw a party if I hadn't just dropped $1000 on a CPU.

  • 2 Hide
    enforcer22 , May 19, 2011 4:26 AM
    kngserthe first paragraph reads "Nokia and Microsoft," since when is intel = microsoft?


    Didn't they teach you how to read in grade school? I mean i can see you confusion if all you are able to read is the first sentence or two but when i was in school i was taught how to read and how to understand what i read. You might want to give it a shot.
  • 1 Hide
    scrumworks , May 19, 2011 6:27 AM
    I'm working for Nokia and I have heard a totally different story. Intel didn't hold their promises and responsibility in developing Meego. Nokia's Meego projects were/are late because of lack of commitment from Intel side. Code libraries that were on Intels shoulders were always late and lacked quality. Meego was a BIG thing for Nokia and Intel screwed it up and now Nokia is loosing market share because of lack of stable next gen smartphone OS. Thanks a lot Intel.
  • 2 Hide
    cookoy , May 19, 2011 7:34 AM
    While intel and nokia had a working relationship on the Meego project, nokia was flirting with MS too. In the end, nokia said to intel, "Me go." Just like MS did with IBM when they were working on the OS/2 project. MS was silently working on Windows. And when Windows was ready, it was "I win dough alone". Birds of the same feather flock together.
  • 0 Hide
    Griffolion , May 19, 2011 9:33 AM
    stuokeDoes anyone who actually owns stock in ARM know how much ARM gets for each ARM designed chip that is sold? Only one penny, that is it. How would that cut into Intel's profits?


    Because for every one penny ARM chip license sold, that's potentially one x86 chip license at however much Intel charge lost. Especially so now that Intel have specially designed low power chips for mobile devices.
  • 1 Hide
    lamorpa , May 19, 2011 12:58 PM
    srgessCan't wait to see a world witch the progress will be over the money.

    What is a 'world witch'? Which kind of witch can fly around the world?
  • 0 Hide
    virtualban , May 19, 2011 1:43 PM
    I seriously did not expect Intel to say anything else than what they said, on this article, on the Windows 8 legacy support and on the production of chips supporting ARM instructions.
  • 1 Hide
    jimsocks , May 19, 2011 2:00 PM
    more like intel couldn't develop a chip small enough for the smartphone market but instead blame on nokia.
  • 1 Hide
    Yuka , May 19, 2011 2:11 PM
    Lol, that's a "get off my back" statement from Intel's side.

    They made a mistake in choosing Nokia alright; Nokia is/was a very talented company to begin with. I bet Intel fell short with the speed Nokia developed things (phone designs, their Meego OS part, etc) and now they're whining about it.

    Cheers!
  • 1 Hide
    elcentral , May 19, 2011 2:32 PM
    if nokias new windows 7 software gets 20points out of 10 by all and there is no android around to peek my intrest i might get a nokia agen. lets hope and c
  • 0 Hide
    cknobman , May 19, 2011 2:48 PM
    f u intel. the only mistake you made was not getting an efficient low power soc produced in time to be competitive with the rest of the market.
  • 0 Hide
    Khimera2000 , May 19, 2011 3:33 PM
    cknobmanf u intel. the only mistake you made was not getting an efficient low power soc produced in time to be competitive with the rest of the market.


    I agree. easier to see intel failing in the partnership because they could not deliver a strong, power efficiant performer on par with there competiters in the market.

    I didnt really expect them to eather. The company has not even remotely catched up to the video market, and how much have they tried, spent, and failed?
  • 0 Hide
    billj214 , May 19, 2011 4:15 PM
    Why would Intel want to support ARM and make it more popular than it's own X86?

    I don't see ARM growing much farther than smartphones with basic capabilities since most apps and games won't run on ARM from what I hear.

    Either way I don't see Meego ever being a big hit unless it has Apple as a partner and that isn't going to happen! Seems that every time Intel goes outside of what it's good at usually flops! Rememeber DLP chips? Although I definately see integrated graphics processing as something Intel has done well lately.
  • -1 Hide
    milktea , May 19, 2011 5:15 PM
    Seems to me like the x86 platform is going down hill, and the ARM platform is on the rise. Even Microsoft is planning to support ARM processors in the next generation Windows. This is really bad news for Intel. If this continues, other CPU manufactures might be able to jump in on the processor race. And the next thing you'll hear is that China develops a set of ARM CPUs that rival Intel's flagship processors in both the desktop and mobile space. :( 
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