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Monday, April 30, 2012

Intel CEO Sees Wireless Carriers As Way To Grow Mobile Sales

NEW YORK (Dow Jones)--Intel Corp. (INTC) sees wireless carriers as potential partners in helping to grow its mobile-chip business, the semiconductor company's chief executive said, as both sides aim to profit more from the increased use of smartphones.

The Santa Clara, Calif., company has long struggled to make inroads in the mobile market, with its chips viewed as too power hungry compared to those based on ARM Holdings PLC's (ARMH, ARM.LN) architecture. But Intel believes it has just about reached power-consumption parity with ARM-based chips and has some performance advantages with its newest chip, code-named Medfield.

Chief Executive Paul Otellini said wireless carriers, faced with high device costs, are showing "a lot of interest" in Intel-powered phones. Some even may look to provide their own smartphones, built by Asian device manufacturers but sold under the carrier's name, rather than relying on the traditional handset makers for all devices, he said.

"The people who have the most interest in optimizing feature sets for the phones at the end of the day are the carriers who own the networks and want to get the maximum return from them," he said in an interview late Monday. "I don't think all of them have been heard from yet."

Already, France Telecom's (FTE, FTE.FR) Orange unit has said it would introduce its own phones using Intel chips this summer in France and the U.K.

Carriers like Verizon Wireless and AT&T Corp. (T) pay high fees to subsidize the cost of the most popular smartphones, such as the Apple Inc. (AAPL) iPhone, a burden that has weighed on their margins and raised concerns among Wall Street analysts.

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