Intel CEO On Mobile: We're In It To Win It

Intel CEO Paul Otellini sent an e-mail to Intel employees Wednesday describing the effort to expand Intel's reach into mobile embedded devices as a "marathon" and conveying his optimism that Intel would win the race in the end.

"The big question on many people's minds is how will we respond to new computing categories where we currently have little presence, specifically tablets and smartphones," Otellini wrote in the e-mail, as reported by Bloomberg News. "Winning an architectural contest can take time."

In the e-mail, Otellini said Intel is on track to showcase its first production smartphones in 2011. "I am also very optimistic about our opportunity in tablets and smartphones, even though we are not first to market with a solution," Otellini added.

The world's largest semiconductor firm, Intel's chips power approximately 90 percent of personal computers shipped worldwide. However, as Otellini's message explicitly reminded Intel employees, that wasn't always the case.

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"Some in the industry laughed at us," Otellini said in the e-mail, referring to Intel's first offerings for the server space, which the Santa Clara, Calif.-based company now dominates.

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Intel's bid to capture a larger share of the burgeoning tablet and smartphone markets will be a prolonged race as opposed to a sprint, Otellini said in the e-mail.

Though Apple's iPad does not feature Intel's processors, Intel's acquisition of Infineon, whose chips are featured inside the iPhone, and its plans for context-aware devices, have led some VARs to speculate about Intel's third-quarter earnings call on Tuesday revealed strong financial results including a record $11 billion in revenue. However, sales of Intel's once-red-hot Atom processor business fell 4 percent sequentially during the third quarter, underscoring the importance of a shift toward mobile devices.