Intel Reports Jump On Q2 Income, But Lowers Outlook For The Year

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Intel has also taken strides to grow its share of the mobile market this year through new partnerships with smartphone makers including Lenovo and Motorola Mobility. Both companies pledged in January to roll out new smartphones running Intel’s Atom Z246 processor, code-named Medfield, by the end of the year.

Chinese handset maker ZTE and Indian handset maker Lava International also announced new partnerships with Intel, through which they plan to design new smartphones based on Intel’s Atom processor. Lava was the first out of the gate with its design, launching in April its Xolo X900 device in India.

The smartphone market today is largely dominated by U.K.-based chip licensor ARM, which licenses its low-power processor architectures to other chip makers including Qualcomm, Texas Instruments and Samsung.

In a recent interview with CRN, Jeff Chu, director of client computing at ARM, made note that Intel faces somewhat of an uphill battle in the smartphone space; the newcomer will face competition not only from ARM but also from its massive base of licensees. Collectively, Chu said, ARM-based chips are found in a staggering 95 percent of the world’s smartphones.

Intel saw significant growth in its Data Center Group during the second quarter, reporting a revenue of $2.8 billion, up 14 percent year-over-year.


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