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News Release from: Strategy Analytics
Edited by the Electronicstalk Editorial
Team on 04 July 2006
Report analyses Intel-Marvell selloff
A new report highlights some of the problems that Intel faced during its seven years in the cellular processor industry, and how these issues could be resolved by new ownership.
Responding to the startling announcement of Intel's cellphone processor division sale to Marvell, the Handset Component Technologies Service of Strategy Analytics has released an analysis of the $600 million Intel-Marvell deal: "Intel crashes out of cellphone business: can Marvell do any better?" This report highlights some of the problems that Intel faced during its seven years in the cellular processor industry, and how these issues could be resolved by new ownership
This article was originally published on Electronicstalk on 4 Nov 2005 at 8.00am (UK)
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Intel was never able to grow its presence beyond applications processors for PDAs.
This will be a huge opportunity for Marvell, granting Marvell access to Intel's intellectual property (IP) in 3G and 3.5G technology.
By contrast, the disappearance of Intel from the mobile phone and applications processor business will have only a minor effect on handset OEMs such as Nokia, Motorola, Samsung, LG, Sony-Ericsson and BenQ-Siemens.
The report concludes that the sale of Intel's mobile phone and applications processor business to Marvell last Tuesday for $600 million is no big deal for the cellphone industry.
For several years Intel has been a small player in a small segment of the overall mobile phone processor business, and has had little penetration into basebands, and no penetration into the transceiver segment of the market.
Both segments represent multi-billion-dollar opportunities.
According to Stephen Entwistle, Vice President of the Strategic Technologies Practice within Strategy Analytics: "The main problem for Intel's mobile phone processor division was that it suffered from a lack of access to the Intel Group's latest semiconductor processes".
"The purchase by Marvell will change this, which should give the product range a new lease on life".
Stuart Robinson, Director of the Handset Component Technologies service at Strategy Analytics adds: "Marvell has a good track record in the fabless chip business".
"It can supply high volume consumer chips profitably, despite aggressive price pressure".
"Marvell now commands two ARM-based designs, its existing Feroceon and Intel's XScale, giving it greater potential to penetrate the 3G handset market".
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