Intel (INTC) CEO Otellini Looks to Taiwan PC Giant for New Smartphone Partnership
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Not many can argue that Intel Corp. (Nasdaq: INTC) is a world-leader in computer chips and processors. They might, however, be able to argue that it's presence in smartphones and mobile devices puts it much further down the rankings to the likes of Qualcomm (Nasdaq: QCOM) and ARM Holdings (Nasdaq: ARMH).
Well, that's something CEO Paul Otellini is fixing to change. According to Digitimes Thursday, Otellini and other telecom execs have met with Acer brass in Taiwan over putting some of Intel's chips into entry-level and mid-range smartphones.
Despite the urging from Otellini, sources said that Acer is content on focusing on its core PC business for now. However, Acer might move gradually into smartphones with a focus on China, where it hopes to become a top-10 brand vendor in the region by FY14.
China is a challenging market for many smartphone vendors, including locals ZTE, HTC, and ASUStek. Different network standards as well as lack of subsidies makes packing features into a low-cost and appeal device challenging.
Intel currently powers devices from Motorola (Nasdaq: GOOG) and Lenovo, and will be in Microsoft's (Nasdaq: MSFT) upcoming Surface Windows 8 Pro tablet, expected to debut next year. Checking out Intel's own website indicates its footprint isn't very large and striking key deals will be a driver for growth...whichever smartphone market they land in.
Shares are up about 0.4 percent Thursday morning.
Well, that's something CEO Paul Otellini is fixing to change. According to Digitimes Thursday, Otellini and other telecom execs have met with Acer brass in Taiwan over putting some of Intel's chips into entry-level and mid-range smartphones.
Despite the urging from Otellini, sources said that Acer is content on focusing on its core PC business for now. However, Acer might move gradually into smartphones with a focus on China, where it hopes to become a top-10 brand vendor in the region by FY14.
China is a challenging market for many smartphone vendors, including locals ZTE, HTC, and ASUStek. Different network standards as well as lack of subsidies makes packing features into a low-cost and appeal device challenging.
Intel currently powers devices from Motorola (Nasdaq: GOOG) and Lenovo, and will be in Microsoft's (Nasdaq: MSFT) upcoming Surface Windows 8 Pro tablet, expected to debut next year. Checking out Intel's own website indicates its footprint isn't very large and striking key deals will be a driver for growth...whichever smartphone market they land in.
Shares are up about 0.4 percent Thursday morning.
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