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Not all analysts share Intel’s optimism about new categories of mobile devices

Intel’s drive to create new categories of small, low-cost Internet-connected devices is driving the company in new ways. She invests in and even buys wireless networks; uses software not developed by Microsoft; makes microprocessors not faster, but cheaper and more compact.

According to CEO Paul Otellini, these steps are part of a strategy to expand access to the global network.

The center of the strategy is the Atom processor, designed for devices of the category MID (Mobile Internet Device), which are similar in size to smartphones, but capable of providing a full-fledged work on the Internet. The second group of devices, somewhat larger than MIDs, will be “netbooks” – miniature and inexpensive laptops. In fact, the formation of this class of devices was started by ASUS with its product Eee PC. Other manufacturers immediately followed her example, vying with each other to offer their “inexpensive laptops”.

Otellini is confident that new developments will not interfere with sales of the company’s more expensive products. Expensive laptops provide more options, he says, so they won’t fall prey to new low-cost models.

Interestingly, not all experts share Intel’s optimism about new product categories. For example, Bill Hughes, an analyst at In-Stat, notes that the need for “netbooks” is only a small group of users. The analyst explains the rapid growth of the corresponding market segment by a small number of products. The situation will change when supply and demand are balanced. According to Hughes, this segment “will continue to be a narrow niche for the foreseeable future.”.

As for the MID, Hughes argues that company polls have shown consumers are more likely to choose a smartphone than a combination of two devices – a cell phone and a MID.

Intel relies on WiMax to connect mobile devices to the Web. But this technology may become a thing of the past without becoming a global standard – large operators are skipping the WiMax stage, planning to deploy new networks using Long Term Evolution technology, which is the successor to modern cellular communications. Intel invested $ 1 billion to support WiMax. Doll. into a joint venture run by Sprint Nextel that is building a WiMax network in the United States. In addition, Intel is part of an investor consortium that acquired the rights to use WiMax in Japan. This month, the company paid $ 26 million. Doll. for a license in Sweden. Interestingly, the company also admits an unfavorable scenario, seeing in it a benefit for the industry as a whole – according to Otellini, if WiMax does not meet expectations, then at least it will accelerate the arrival of Long Term Evolution.

In terms of software, Intel does not rely on Vista in mobile devices, since this OS is expensive and places high demands on memory and graphics subsystem, but on Linux. Otellini noted that Microsoft has an OS for smartphones, but it only runs on processors designed by Intel rival ARM.

Source: AP

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