Intel, Nokia's Partnership Changes Market Outlook
Oct 2, 2006
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Intel and Nokia said on Sept. 27 that they plan to offer embedded wireless Internet connectivity in laptops through a partnership. This changes the market outlook for embedded cellular modems in portable computers, according to ABI Research, and hurt the share prices of competitors in the wireless modem business, Novatel Wireless and Sierra Wireless.
"The Nokia/Intel partnership to produce an embedded HSDPA Mini-card modem will not only accelerate the market for cellular connectivity in notebooks. Intel is also taking a first step towards the eventual inclusion of WiMAX wireless broadband in portable computers," said ABI Research Senior Analyst Philip Solis. "The eventual goal is to offer multiple connectivity options."
ABI explains that cellular modems for laptops come in two form-factors:
embedded modems such as the ones Intel and Nokia plan to offer
ABI said that, while PC cards will still be sold in the aftermarket for some time, the real future of the market lies with embedded modems, making up nearly 17 percent of the total this year. That proportion will increase steadily over time. A recent ABI Research study projects the cellular PC cards and embedded modems market is expected to go from U.S. $1 billion in 2006 to $3 billion in 2010.
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