Intel is expected to report lower revenue and earnings for the second quarter when it posts results after the market closes today, but investors will be yearning to hear more details from new CEO Brian Krzanich about what the company plans to do to catch up in mobile. Since Krzanich took over in May the company has sounded more aggressive notes about moving faster in the wireless market, particularly with its Atom-based chipsets for smartphones, tablets and other devices. However, research firm Strategy Analytics projects smartphones with Intel processors will capture just 1 percent of the market this year.
It's not all glum news for Intel though. According to Forward Concepts analyst Will Strauss, Nokia's (NYSE:NOK) new $20 105 phone uses Intel's X-Gold PMB7900, which combines the baseband and RF transceiver. "According to a teardown by IHS, the bill of materials and manufacturing costs total an estimated $14.20, allowing a reasonable profit for Nokia," Strauss noted in a newsletter. "So, it appears that Nokia may have standardized on Intel's 2G modem platforms for its third-world and entry-level phones." Article (sub. req.)
At the same time, Intel rival Qualcomm (NASDAQ:QCOM) is trying to close the door on Intel in the tablet market before it even gains ground. Qualcomm has started selling its upgraded Snapdragon 600 and 800 chipsets, and anticipates that the new chips will appear in 200 phones and tablets, Raj Talluri, senior vice president of product management at Qualcomm, told Bloomberg. However, he did not provide a timetable for those 200 product design wins. "You'll see a whole bunch of tablets based on Snapdragon 800 in the market this year," he said. "There's a lot of talk about Intel and tablets. Clearly we see them still being far behind in mobile." Article