Intel Goes To War With The Cell Phone Makers

From 247WallSt

Intel (Nasdaq: INTC) plans to release chips to power a new generation of tiny PCs. The kind you can fit in a coat pocket. The device will work with WiFi, WiMax, Bluetooth, satellite navigation and TV tuners. It will not be meant to run on the next generation wireless systems that most cell operators plan to deploy.

The new chips will use very little power. And, the devices will run Microsoft (Nasdaq: MSFT) Windows Vista.

If the Intel/Microsoft initiative succeeds, there will be a few losers. On the handset side, count Nokia (NYSE: NOK) and Motorola (NYSE: MOT) among the group. On the chipset side, Broadcom (Nasdaq: BRCM) and Qualcomm (Nasdaq: QCOM). And in the cellular service business, AT&T (NYSE: T) Wireless and Verizon (NYSE: VZ).

Presumably Sprint (NYSE: S) would be aided by the infrastructure portion of this product because it plans to use WiMax for its next generation broadband network in the US.

One more portable device. One more chance for some company to make or lose an awful lot of money.

Douglas A. McIntyre

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