Intel pins hopes on smartphones in 2011

Intel boss Paul Otellini hopes for growth in the smartphone and tablet PC market for its products in 2011

Intel is pinning its hopes on the tablet PC and smartphone markets in 2011, hoping to sell more of its chips to phone and slate computer manufacturers next year.

Intel hopes to follow the success of Apple and Google in the mobile and tablet PC markets.

Laptops, tablets, smartphones

"The consumer (tablet) products will roll out over the first half of next year," Chief Executive Paul Otellini told analysts this week.

Otellini outlined that tablet manufacturers including Dell, Asus, Lenovo and Toshiba have agreed to use Intel chips in 35 tablet models in 2011.

Intel has been incredibly successful in the netbook market with its Atom chips, yet has so far failed to make considerable business in the fast-growing tablet PC or mobile phone markets.

"Intel is moving in the right strategic direction but they still have a long way to go," said Hendi Susanto, an analyst at Gabelli & Company.

"They're late into the game. There is no clear visibility on what the products look like."

Medfield chips on the way

Intel's share of the world semiconductor market fell to 13.8 per cent in 2010 from 14.2 per cent in 2010 2009.

Otellini said that Intel's move into the smartphone market was "a marathon, not a sprint," and that Intel's Medfield chip should ship next year and in 2012.

"You will see smartphones from premier branded vendors in the second half of 2011 with Intel silicon inside them," said Otellini.

Intel has started shipping its Sandy Bridge chips, which should be in new notebooks early in 2011.

Via Reuters