Biggest loser in Microsoft/Nokia deal is Intel

Biggest loser in Microsoft/Nokia deal is Intel

Summary: Analysts are stepping up with thoughts on who the biggest winner is in the Microsoft/Nokia deal announced today, but what strikes me is how Intel has just been thrown under the bus.

SHARE:

Microsoft and Nokia shook up the mobile world with today's announcement of a strategic partnership that will see Windows Phone 7 adopted by Nokia as its platform going forward for high-end smartphones. Analysts are stepping up with thoughts on who the biggest winner is in this deal, but what strikes me is how Intel has just been thrown under the bus.

Intel has been floundering for years in its efforts to break into the mobile smartphone space, but with no luck. Its processors have been passed over by smartphone makers in favor of Qualcomm's Snapdragon and other ARM-based solutions. Nvidia is set to take a major role in the smartphone sector with its Tegra 2 processors, further pushing Intel to the back of the pack.

The Nokia/ Intel strategic partnership a while back to create the Meego smartphone platform was Intel's effort to partner with a handset maker, but more importantly to develop a platform that was optimized for Intel's mobile chips. The company was failing in efforts to get OEMs to adopt Intel chips, so it made sense to create a platform optimized for them. Intel executives must be in emergency meetings today trying to figure out where it goes from here given Nokia's ditching of the Meego platform.

Sure, Nokia says it will continue to work with Meego, but the writing is on the wall. The company will be using Windows Phone 7 on its flagship smartphones going forward, not Meego. That leaves Intel with millions of dollars worth of egg on its collective faces.

The smartphone space may now be "a three horse race", but with its chipsets missing from all of the player's handsets Intel is definitely the biggest loser in the Nokia/ Microsoft deal.

Image credit Intel

Topics: Windows, Banking, Intel, Microsoft, Mobility, Nokia, Operating Systems, Software

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

47 comments
Log in or register to join the discussion
  • you are saying that

    windoze mobile 7 does not support Inhell chips?
    May be Inhell should have been part of the M$-Nokia deal with bribes to switch to its chips.
    Linux Geek
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @Linux Geek

      After reading that gibberish I had to laugh out loud at the nickname. So. Very. Perfect. +1
      Helio99000
  • Last time Intel was on the other side

    One of the things that killed all the minicomputer makers, and all the mainframe makers except IBM, was their insistence on treating their proprietary instruction set (whatever it was) as if it had been handed to them on stone tablets by Moses himself.

    It was like pulling teeth to get any of them to build a machine that wasn't a "microVAX" or a "microNOVA" or a "microNCR". In the end virtually all of them built an Intel-based "IBM clone," but it was too late. Today they are either gone from the world or shadows of their former selves.

    As for Intel: they have great engineers, world-class fabs, tremendous know-how, and distribution from Memphis to Mumbai. If they could get past the idea that the x86 instruction set was handed to them on tablets by Moses, they could make some "insanely great" ARM chips.

    Will they? Probably not. I don't know what causes this disease, but it's how Nature rids the world of companies that have gotten sclerotic in their old age.
    Robert Hahn
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @Robert Hahn

      good writing, like it!
      nessrapp
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @Robert Hahn

      I think you're right, and that the same thing can be seen in software, with APIs. The two most prominent sets of APIs are of course Win32 (and Win16 before it) and Posix/X11. Microsoft's earlier mobile OSes tried to shoehorn Win32 into a mobile, and I was absolutely gobsmacked to read that MeeGo uses an X server to display graphics -- an X server on a mobile phone!

      Microsoft seem to have recovered from the disease, with their focus on Silverlight, HTML5 and XNA. Even if Windows Phone 7 uses a Win32 API beneath these, it can now safely be ignored. Similarly, iOS and Android use Unix-like cores (Mach/BSD and Linux, respectively), but implement modern APIs on top of them.
      WilErz
  • Nokia is the biggest loser

    They had QT Designer, a brilliant development platform, they had some of the best hardware, market share a quality reputation.

    What they didn't have was an up to date OS, Symbian had been left to rot, they'd switched focus to one OS after another, Meego being the latest.

    They have the staff to deliver the kind of wow factor Xperia delivers, yet somehow failed to empower them.

    The switch means they're competing with a not-so-popular phone OS, a not-so-popular search engine, a not-so-popular-maps, and suppose they succeed... they don't own any of it! They can't even add features to their phones not found in other WP7 phones because they need MS to add support first!

    What a disappointment.
    guihombre
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @guihombre "QT Designer, a brilliant development platform"? Are you kidding? Even Linux developers prefer GTK over QT. OpenOffice, Chrome, Firefox all use GTK. Redhat, Suse, Ubuntu all use GNOME.
      WP7 is a great OS and grows at a much faster rate than iOS, Android. Think of the market share and app number three months after these two OSes were released.
      Did you know that Google search market shared decreased to 64% and Bing went up to 24%.
      Did you know that Nokia's Ovi map is fantastic and will integrated into Bing map?
      Did you ever heard of Xbox Live, Visual Studio, Zune?
      UseYourHead
      • RE: Biggest loser in Microsoft/Nokia deal is Intel

        @UseYourHead WP7 is a great OS? where?
        @guihombre undoubtly Nokia is the biggest loser, but maybe Nokia users would be more losers than them? an user become a loser when they choose to buy hardware with Microsoft oem/firmware crap inside
        nitrofurano
      • RE: Biggest loser in Microsoft/Nokia deal is Intel

        @UseYourHead
        mmmm...... microsoft?s lover?
        delfin.ruiz@...
      • RE: Biggest loser in Microsoft/Nokia deal is Intel

        @UseYourHead
        mmmm...... microsoft?s lover?
        delfin.ruiz@...
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @guihombre @nitrofurano
      Guys, seriously if you have used a WP7 device - just from a straight up UI perspective it is quiet possibly the best mobile phone available. I know Palm OS users would contest this...

      This is about putting a solid offering on the table which compells users to buy.
      jessiethe3rd
  • RE: Biggest loser in Microsoft/Nokia deal is Intel

    Intel chose the wrong OS.
    Loverock Davidson
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @Loverock Davidson

      So did Nokia.

      Then again a dying handset maker and a DOA OS are a match made in Heaven.
      itguy08
      • RE: Biggest loser in Microsoft/Nokia deal is Intel

        @itguy08
        Exactly! Nokia + Intel + Meego = DOA.
        Which is why Nokia moved to WP7. At least Nokia was smart enough to know when to switch.
        Loverock Davidson
      • which is why they did not use Android

        @itguy08, so it would appear that you actually "got one correct".
        :|
        Tim Cook
      • RE: Biggest loser in Microsoft/Nokia deal is Intel

        @itguy08 yes, nokia is shooting their feet - i were about buying Nokia, but after seeing all this, they surelly lose customers, not only me.
        nitrofurano
  • What about Nokia sharhelders?

    Fourteen percent of Nokia's value just went up in smoke.
    none none
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @none none
      Knee jerk reaction in the market.
      From smartphones people want 1. good hardware and 2. apps. Nokia can do #1 but they struggle with #2. Here Windows phone has great potential as it is new platform that is not too crowded yet and it comes with app store and lots of developers. Going to android would be suicide for nokia but with windows phone they have a chance.
      Let's hope they do not screw up and start building phones in a few months and not years.
      paul2011
    • Yet ARM Holding's value went up even more

      when MS announced that they're finishing up with an ARM version of Windows.

      Imagine that.
      John Zern
    • RE: Biggest loser in Microsoft/Nokia deal is Intel

      @none none

      I think the hit to Nokia's share price was mostly a reaction to what was revealed about Nokia's current situation, combined with the lack of details about Nokia's plans. Apparently margins on existing Symbian-based mobiles will be smaller than analysts had expected, and it will take two years to fully transition from Symbian to Windows Phone 7. On top of that, vital details like whether or not Nokia will get part of search-related Bing revenues from Nokia WP7 devices weren't explained.
      WilErz