Intel targets mobile internet market

02-04-2008

by Ciara O'Brien

Intel is launching a full-on assault on the mobile internet market with new processors aimed at Mobile Internet Devices (MIDs) and embedded computing solutions.

The chipmaker has announced its five new Atom processors and Intel Centrino Atom technology for portable devices, which includes a single-chip with integrated graphics dubbed the Intel System Controller Hub that gives mobile devices PC-like capabilities and longer battery life.

The Atom processor is Intel's smallest and fastest chip under 3 watts, and is energy efficient, smaller in size, and facilitates sleeker designs.

Intel-based MIDs will begin shipping this summer. However, the company is coming late to the mobile internet party. Already consumers are buying devices that are internet enabled, with portable devices such as the iPhone and other smartphones already finding a niche market. Intel though is expecting the Atom processors to be used in next-generation, internet-based portable video players, navigation devices, converged tablets and other consumer products.

Anand Chandrasekher, Intel senior vice president and general manager of the Ultra Mobility Group, described it as a historic day for both Intel and the high-tech industry. "Mix in the incredible innovation coming from our fellow device makers and software vendors, and we will change the way consumers will come to know and access the World Wide Web. These forthcoming MIDs, and some incredible longer-term plans our customers are sharing with us, will show how small devices can deliver a big Internet experience," he said.

The new chips may prove to be an additional source of revenue for the firm, which was forced to revise its gross profit margin forecast for the first quarter in March. It blamed lower prices for flash memory chips for the reduction, saying it was expecting its first quarter gross profit margin to be 54 percent, plus or minus a percentage point, compared with mid-January's forecast of 56 percent, plus or minus a couple of points.

Meanwhile, RealNetworks has announced that it will release a new RealPlayer optimised for Intel-based mobile devices. The new player will include a simplified business model that covers licensing, royalties and reports. The application also has bundled codecs and the ability to play browser content or use the application as a stand-alone media player.

Shane Wall, vice president of Intel's Mobility Group and director of strategy and planning for the Ultra Mobility Group said the collaboration would deliver an integrated solution covering a range of technology elements such as the Moblin-compliant Media Framework, Player, and Codecs, which would make it easier to deliver faster solutions to market.