Intel has a history of trying to enter key markets itself, and this alliance shows Intel's willingness to adopt partners. Intel realized it needed help to sell its mobile chips based on the Atom architecture to tackle processors designed by rival Arm, Olds said. Arm chips go into most of the world's mobile phones, including the iPhone 3G S and Palm's Pre.

Nokia, which currently depends on Arm chips for most of its smartphones and its Internet tablets, understands that the Arm architecture could fall short as it tries to move upstream and serve the netbook and MID markets, said Jack Gold, principal analyst at J.Gold Associates, in a research report. Most of the netbooks today carry Intel's Atom chips.

"By working with Intel, Nokia gets to influence the design of Atom chips specifically targeted where Nokia needs to go; expanding from its smartphones base and into more wireless entertainment devices," Gold wrote.

Two of the world's top three mobile-phone makers now plan to use Intel's chips in mobile devices. LG Electronics said earlier this year it would use Intel chips in an upcoming MID. These two design wins should put Intel in a better position to compete with companies such as Texas Instruments and Qualcomm, which make Arm-based chips for mobile devices.

During the announcement, Intel also said it would license Nokia's technology for 3G HSPA (High Speed Packet Access) cellular technology for use with its chips. Nokia has compelling intellectual property in 3G radio technology, and the adoption of Nokia's mobile broadband technology could help to strengthen Intel's communications offerings, which include Wi-Fi and WiMax chips, analysts said.