Intel, Nokia Alliance Triggers More Questions

The “expanded relationship” of Intel Corp. and Nokia Corp. to design and build new mobile devices and platforms has prompted questions about what products this alliance will generate – and how soon. Tuesday’s announcement did not offer specifics about financial terms or timetables, other than collaboration on development of new mobile platforms for “innovative hardware, software and mobile Internet services.” The companies acknowledged that they will work together on open source, Linux-based projects.

The alliance helps both companies. Intel has had limited presence in the mobile phone market, which is growing worldwide much faster than the PC and laptop categories. Nokia, which holds a major global presence and has several smartphone devices, including its new he, including its N97 and E92 models. Yet it has limited U.S. wireless carrier relationships and is losing momentum versus smartphone dynamos Apple, Blackberry, the revived Palm and the nascent Google Android.

Intel chips and Nokia’s broadband connectivity are seen as a path toward the next wireless nirvana – a world of vast entertainment and information options. The companies talk about creating a “new class of devices” that go where smartphones, netbooks and lapotps cannot – extending beyond Intel’s current chips for “Mobile Internet Devices” (MIDs).