Intel Buys Patents

Intel on Monday spent US$375 million to purchase nearly 1,700 wireless networking patents from subsidiaries of digital communications company Interdigital.

Intel will get patents that cover a range of 3G, LTE and Wi-Fi technologies from Interdigital. The patents should boost Intel’s product mobile product portfolio as the company establishes a presence in the smartphone and tablet markets, which is currently ruled by ARM.

Intel has said it will integrate 3G and 4G LTE capabilities along with its Atom microprocessor in devices like smartphones and tablets. Intel made its first entry into the smartphone market earlier this year with its Atom chip code-named Medfield, which is being used in handsets from Lenovo, Orange and Lava International.

Intel later this year will release a dual-core Atom Z2580 processor with 3G, 4G and LTE capabilities. Intel’s upcoming Atom chip for tablets, code-named Clover Trail, will also come with mobile broadband options.

Intel started building its wireless business following the acquisition of Infineon Wireless for $1.4 billion, which was completed last year.

Wireless is a fast-changing market, and the company is making this investment to support the business, according to Chuck Mulloy, an Intel spokesman.

“This was an opportunity to add some value to our patent portfolio. That’s over and above what we have,” Mulloy said.

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Corporate America Prefers iPads

Corporate customers who are planning tablet purchases next quarter overwhelmingly picked Apple’s iPad, a research firm said Tuesday.

Of the 1,000 business IT buyers surveyed last month by ChangeWave Research who said they would purchase tablets for their firms in the coming quarter, 84% named the iPad as an intended selection.

That number was more than ten times the nearest competitor and was a record for Apple.

“The percentage reporting they’ll buy Apple iPads has jumped to the highest level of corporate iPad demand ever seen in a ChangeWave survey,” the company said in a blog post.

Apple’s share of future business purchases has never been lower than 77% in any ChangeWave survey, which go back to November 2010.

Just over a fifth of all IT buyers — 22% — confirmed that they would be purchasing tablets for employees in the April-June quarter, ChangeWave said.

While Apple’s stock among corporate buyers rose by seven percentage points from the 77% that tapped the iPad as their preferred device last November, all other tablet makers’ numbers dropped in the most recent survey.
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Intel Wants To Deliver Cheap Smartphones

Intel has revealed some additional information on the 2012 mobile strategy to its partners and it even shared some pricing guidelines for mobile products.

According to a slide entitled Mobile Landscape in 2012, Intel wants to sell mobile phones powered by its CPUs for as little as $199 to $299. This is where Intel sees a market opportunity for its phones and the prices are surprisingly low.

It also places netbooks in the same price range $199 to $299 while Intel based tablets should float between $399 and $499. Naturally more expensive options are always a reality. Tablets can go up to 12.1 inches and the starting price for these bigger machines should be $299, and in the high end the sky is the limit.

Hybrid notebooks should stay at less than $699 and this is a category where you can twist the display, slide the keyboard or even take the keyboard off from the netbook, or tablet. Think Asus’ Eee Pad Slider, Transformer, this will give you an idea of what to expect, but with x86 support. Phones, netbooks, hybrids and tablets are all based on Atom architecture.

Intel plans to sell laptops starting at $3xx and up. Probably slightly more than $300, but less than $400 is what they have in mind. Top notch notebooks based on Core i7 chips will start at less than $799 and Ultrabooks with 11-inch or larger screens might be coming down to $599 to $699. Of course, high end models will end up a lot pricier.

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Motorola, Lenovo To Offer Intel-Smartphones

Intel announced multi-year deals with Motorola Mobility and Lenovo to create smartphones and tablets, and said the first Google Android phones using the top chipmaker’s processors would go on sale this year.

Speaking at the Consumer Electronics Show in Las Vegas on Tuesday, Intel Chief Executive Paul Otellini said Lenovo would launch a smartphone for the Chinese market using Intel’s newest chip in the second quarter of the year, while Motorola will release its phone in the second half.

The agreements with the U.S. and Chinese consumer electronics makers help shore up Intel’s boldest foray into the mobile arena. The company is hoping its new “Medfield” chip conserves enough power to compete with rival smartphones using ARM Holdings’ more energy-efficient architecture.

The world’s largest chip maker is also making a concerted push for the likes of Hewlett Packard to go big on super-slim, Apple Macbook Air-like laptops called Ultrabooks, which it hopes will preserve its dominance of the PC market as tablets like the iPad draw consumers away.

“It is a multi-year, multi-product strategy that will bring both phones and tablets to the (U.S.) marketplace starting with a phone in the second half of 2012,” Dave Whalen, a vice president in the Intel Architecture Group, said of the agreement with Motorola.

“You’re going to see us working very closely with them on technologies,” Whalen told Reuters in an interview.

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Windows 8 Tablet Being Developed By ASUS

Chinese newspapers have indentified Asustek as one of five international PC brands that will work with Microsoft on the “Windows on ARM” (WOA) architecture.

Microsoft is to release its first operating system that supports chips from Arm next year. Only five PC brands have been invited by Microsoft to join WOA, a development project that shows its aggressiveness in tapping the burgeoning tablet PC market. Asustek is the latest announcement. So far Samsung, Toshiba, HP and Lenovo have been identified as working with Microsoft to develop notebooks and tablets that run on WOA architecture.

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Is Qualcomm A Threat To Intel?

Intel tried to do gaming graphics cards and it failed, but when it comes to CPUs for desktop and notebooks, it is currently dominating the market. Even the graphics used in Intel’s latest integrated CPUs these days are quite decent for multimedia and even some basic gaming.

Still, Intel is now shifting its focus and it sees Qualcomm as its main competitor in years to come. We heard this from high ranked sources from within Intel who believe that Qualcomm is the only ARM company that has it all, and Intel wants to take it on.

Intel is carefully watching Nvidia and Texas Instruments, again two strong ARM players, but it still thinks Qualcomm has better time to market, more customers and a much stronger portfolio.

Intel should start shipping Medfield just in time for Windows 8, and in case you’ve missed it, Medfield is a SoC (System on Chip) platform that should find its place to a few tablets and probably even some phones next year. Since Intel is trying to speed development up and put as much pressure on ARM players as possible, its next generation SoC will also come before the end of 2012, and it will use the advanced 22nm process, something we won’t see in ARM chips next year.

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AMD To Slash A 10th Of Its Workforce

Advanced Micro Devices Inc revealed a plan on Thursday to save about $200 million of operating costs in 2012 by cutting 10 percent of its global workforce and streamlining internal business processes.

The layoffs mark the first major move by Chief Executive Rory Read, who took the helm in August to try to galvanize a microprocessor maker that has bled market share to larger rival Intel Corp, while missing out on the mobile device boom.

“It’s not too surprising given the operating background of the new CEO and this is exactly what you’d bring an outsider in to do, but their problems go far deeper right now,” said Alex Gauna, an analyst at JMP Securities.

The layoffs should be completed in 2012′s first quarter, AMD said in a statement. Savings generated could help bankroll research and expansion into areas such as low-power chips, emerging markets and cloud computing next year.

In late September AMD, a distant second to Intel in selling microprocessors that are the brains of PCs, warned of manufacturing problems manufacturing it new 32 nanometer Llano chips as well as older 45 nanometer chips.

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Lenovo Passes Dell, Becomes No. 2 PC Vendor

Lenovo surged past Dell to become the world’s second largest PC vendor at the end of the third quarter, according to research firms IDC and Gartner.

Top PC maker Hewlett-Packard also saw its worldwide PC shipments grow by 5.3 percent in the quarter, despite reports that the company may spin off its PC business.

Both research firms said growth for the quarter failed to reach earlier projections. IDC said at the end of the third quarter, worldwide PC shipments increased by 3.6 percent year-over-year, below its earlier 4.5 percent growth projection.

Gartner said PC shipments grew by 3.2 percent year-over-year, which was lower than the research firm’s original projection of 5.1 percent growth for the quarter.

Analysts have pointed to sluggish spending because of weak economic conditions as a key reason behind the slowdown in PC growth. The rise of tablets has also hurt shipments.

“For the moment, PCs have taken a backseat to a range of other devices competing for shrinking consumer and business budgets,” said IDC analyst Jay Chou in a statement.

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Dell & Baidu To Create Mobile Devices

Dell Inc and China’s top search engine Baidu Inc plan to join forces and develop tablet computers and mobile phones, targeting the Chinese market dominated by Apple Inc and Lenovo.

China is one of the fastest growing markets for tablets and is home to more than 900 million cell phone subscribers, but analysts were skeptical that the partnership would knock Apple from its dominant perch in the market.

“I suspect this is just Dell, who has a lot of problems on the mobile and tablet front, grasping at straws to get any kind of publicity that it can to make its product more attractive,” said Michael Clendenin, managing director of technology consultancy RedTech Advisors.

“Ultimately in China, I still think it is Apple’s game, still for the iPad and iPhone.”

Dell declined to give a timeline for the launch of the devices, but local media reported on Tuesday, quoting sources, that it may be as early as November.

Baidu launched a new mobile application platform last week and offered a glimpse of its upcoming mobile operating system, which it hopes will serve a growing number of users accessing the Internet from smartphones and tablet computers.

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Analysts Expect Flood of Cheap Tablets This Fall

Analysts are predicting that a whole slew of $200 to $300 tablet computers will hit the market this fall, prompting the essential question: Which device will come out on top?

Several analysts are betting on Amazon.com to be at the top of the pile with an expected $299 Android-based tablet introduced sometime in October. The reason it will do
well is only partly because of the low price, which is below the market-leading iPad 2, starting at $499.

But analysts also expect Amazon to offer content for its 9-in. tablet thats comparable to or even exceeds the content that Apple can offer for the iPad. Amazon will make money on the content it sells, which is expected to more than make up for any loss it incurs in selling the tablet at a price below the cost of making it.

“Amazon has an ecosystem like Apple, with its own app store that offers music, movies and videos, and a bookstore,” said Bob O’Donnell, an analyst at IDC. “Not only would you get a cheaper device [than the iPad], you would get the integrated Amazon experience. That’s what makes Amazon’s tablet the most interesting and where other [Android] tablets will be challenged.”

In effect, Amazon’s approach will be to entice buyers with a much lower price, “but have all the services of Apple,” O’Donnell said.

Other Android tablets with which Amazon would likely compete include a $199 Lenovo IdeaPad A1 tablet announced Thursday, the cheapest 7-in. Android tablet from a top device maker. Another contender is the original Samsung Galaxy Tab, which is being sold on Amazon for $279.99, after having first appeared late in 2010 for $600.

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