Nokia and Intel to work together on mobile devices

By Clare Baldwin and Sinead Carew

SAN FRANCISCO/NEW YORK (Reuters) - Intel Corp announced a technology partnership with Nokia that could potentially give the chip maker the breakthrough it has been looking for into the mobile market.

The companies said on Tuesday they would work together on a new class of mobile computing devices, but would not say when they would come to market or give details on the kind of wireless products they hoped to develop together.

Analysts saw the pact as strategically important for Intel in the long term because it gains the world's top cellphone maker as a potential client. But given the lack of details, analysts said it could take one or two years for products to come to market, and it remained to be seen if they would find favor with consumers,

"Intel at least has its foot in the door. It's an important and strategic customer," said Gartner analyst Jon Erensen, who sees the partnership as a way for Intel to get into the market for advanced phones known as smartphones.

However, he added, "You're probably talking about something like 2011 before you get down to the power consumption and integration (levels) you'd need for that kind of device."

Analysts said the deal gives Intel a chance to take on leading cellphone chip makers Qualcomm Inc and Texas Instruments Inc, a big Nokia supplier.

It could also mean stiffer competition for ARM Holdings Plc, which supplies core cellphone processors to both Texas Instruments and Qualcomm, and whose customers rely in part on software from Wind River Systems Inc.

Intel said earlier this month that it would buy Wind River, whose software speeds up and connects devices made by Samsung Electronics, Apple Inc, Hewlett-Packard Co and Motorola Inc.