Intel announces smartphone deals as it tries to move outside its core PC computing business into powering mobile devices.
LAS VEGAS (TheStreet) --
Intel(NYSE:INTC) CEO Paul Otellini announced smartphone deals with Lenovo and Motorola Mobility(NYSE:MMI) on Tuesday as the chipmaker tries to move outside its core PC computing business into powering mobile devices.
The move comes as rival Qualcomm(:QCOM), which has dominated the mobile chip space but hasn't yet made inroads into PCs, made public plans of its own to put its latest S4 Snapdragon processor into laptops.
During his keynote at the Consumer Electronics Show in Las Vegas, Otellini introduced the Lenovo K800 smartphone, the first mobile device to feature Intel's Atom chip. The phone, which will run on Google's (:GOOG) Android operating system, will first go on sale in China in the second quarter.
"This is only the first step that I believe Intel and Lenovo will achieve in the mobile market," said Liu Jun, Lenovo senior vice president.
Otellini also brought on stage Motorola Mobility Chairman and CEO Sanjay Ja who said the two companies are launching a multi-year, multi-device relationship. Motorola will announce carrier relationships later this summer and will begin shipping phones after that.
Otellini said that Intel's smartphone reference design -- technology that hardware companies can use to design their own Android phones -- has eight hours of talk time and 14 days of standby time.
"There's momentum and we believe phones powered by Intel's architecture deliver an unmatched experience," he said.
Otellini's announcement marks the first time Intel's chips, criticized in the past for being battery hogs, have been used in mobile devices. Chips designed by ARM Holdings(:ARMH) -- which are licensed by companies including Qualcomm -- have historically controlled the smartphone and tablet sector. Apple (:AAPL) uses ARM chips in its iPad.
Consumers expect their phones to operate as well as their PCs, Otellini said. He demonstrated the power of the new Intel-powered smartphone on stage by showcasing its ability to play high-definition video and games.
--Written by Olivia Oran in Las Vegas.