iPhone and the Future of Intel

Intel did not win the processor design contract from Apple’s much hyped iPhone. Naturally, this is not news that makes the titan happy. Consequently, they have decided to compete against Apple.

“Virtually every computer and handset manufacturer is struggling to figure out how they’re going to compete with Apple’s iPhone,” Otellini said. “If we get the power and performance [of the Intel chip] right, it’s going to be a killer combination.”

The chip will meet the demanding power, space and performance requirements of handheld devices and will be available later this year, CEO Paul Otellini told analysts and investors at Morgan Stanley’s Technology Conference in San Francisco in March.

Apple has not disclosed who will provide the main processor for the iPhone. Speculations are rife that the winner is Samsung.

Nonetheless, Intel’s new initiative is a smart and important one, and could be a seminal one in driving their future. The iPhone, if successful, will drive all the computer and handset vendors towards a convergence device, including most of Intel’s top customers: HP, Dell, Lenovo.

Remember, I said, the iPhone is positioned against the laptop, not the cell phone, and therefore, Intel can pose the most important challenge to Apple, by powering all its competitors with a low-power, high-performance, mobile-ready chip that leapfrogs the market.

While we have so far said that the OS is going to become the biggest issue in the iPhone’s future, if Intel achieves significant innovation in the integration, power, and performance arena, the rules of the battle can be changed yet again.

Intel is THE company that can achieve this!