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Nokia and Microsoft deal hurts Intel

Rumors were floating around that Nokia and Microsoft were in discussions about possibly forming a partnership. Well, they formed that partnership. But now, Intel is claiming that this partnership will hurt them.

Nokia and Microsoft formed a “strategic partnership” that now allows both companies to create products and services that will create an impact in the smartphone arena. Unfortunately, this partnership does not work in Intel’s favor.

As Computerworld reports, Intel does not like that Nokia has made a partnership with Microsoft. With this partnership, Nokia will begin using ARM based smartphone chips to power their new phones. Intel has been manufacturing Atom-based smartphone chips which was favored by Nokia and their Meego Operating system prior to the partnership. But now, Nokia will have to switch to ARM based chips which are the only chips compatible for Windows Phone Operating System.

In other words, Windows Phone Operating System does not support Atom-based chips and will only work on ARM based chips. Also, don’t hold your breath because there is no plan on porting Windows Phone OS to make it compatible with Intel’s Atom processor.

Ok, so why is Intel complaining? Nokia’s deal with Microsoft will most likely hurt Intel’s ability to ship Atom-based processors in volume and it will diminish the chip maker’s opportunity to compete with the almighty ARM chip.

Nokia and Microsoft do not have an exclusive partnership. Perhaps in the near future, Nokia can adopt or partner up with Intel to create Intel based phones.

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