Intel has so far failed to break into the mobile phone market. Otellini killed former chief Craig Barrett's US$5 billion handset processor initiative in 2006, after Intel lost out to and other companies. Apple uses Intel chips for its Mac computers, but ARM processors for its iPod and iPhone lineups.
Intel's Atom chip has gathered buzz for its use in small, low-cost , one of the few tech categories that due to reduced consumer spending on more expensive notebooks. But netbooks are a niche market at best. Gartner's estimate of 78 million netbooks sold accounted for only 5 percent of .
Smartphones, therefore, represent a bigger chunk of a larger market for Intel to capture. Intel CFO Stacy Smith told Bloomberg, "We would love dearly to win one of the big guys, that really is the smartphone game, it really is a concentrated set of suppliers. We're lurking behind every bush and showing them our product line."