Boston, MA 01/06/2013 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) is finding it hard to penetrate the smart phone and tablet chip market. The company’s late entry into the field is the reason for this. However, it seems that the company is gradually cashing on an opportunity that could give it the run it needs in mobile chips market.
The company is collaborating with Samsung Electronics in development of a smart phone operating system called Tizen OS. The two companies are expected to introduce Tizen OS powered smart phone in February at the Mobile World Congress.
Several other players are part of this association to develop a parallel Smartphone OS to Google Inc (NASDAQ:GOOG)’s Android and Microsoft Corporation (NASDAQ:MSFT)’s Windows Phone. Some of these players that would start manufacturing Tizen OS based phones as early as 2014 include NEC, Fujitsu, Huawei, Orange, Vodafone, LG and Panasonic. This arrangement will offer an opportunity for Intel Corporation (NASDAQ:INTC) in smartphone chip market.
Formidable group
Tizen Association which brings a group of select smart phone manufacturers together as well as the chipmaker Intel Corporation (NASDAQ:INTC) is not only formidable but impressive as well. The group visibly excludes Qualcomm whose presence would otherwise complicate the picture for Intel Corporation (NASDAQ:INTC) that is trying to undo it in the high-end smart phone chips.
Tackling Android
Tizen initiative is expected to usher in painful ramification for Android which controls the bigger share of the mobile OS.
Intel Corporation (NASDAQ:INTC) is seeking penetration in Android-based phones. However, there are also many chipmakers serving this market, and its late entry into smart phones and tablets has not done it good either. If Tizen OS does get a chance among smart device makers, it would be the much needed push to help Intel Corporation (NASDAQ:INTC) penetrate the smart phone market.
Samsung is the leading manufacturer of smart devices. The association that brings it together with Intel Corporation (NASDAQ:INTC) in defining the future of smart phone is what Intel Corporation (NASDAQ:INTC) needs to break the long standing barrier in this market. The stock remained under pressure in the past year as PC market declined, server sales sagged and competition denied it the benefits in smartphone and tablets market. But Tizen initiative looks good enough for the future the stock.
