There is space for Intel to compete with ARM in the smartphone market, Otellini said during a conference call Tuesday to discuss Intel's financial results. He acknowledged it may take time to establish a meaningful presence but said the smartphone market is big enough for Intel to find a place in it.

Some of the top smartphone makers include Apple and Samsung, which both use ARM processors in smartphones and tablets. Intel is having a "continuing dialogue" with both companies, Otellini said. He didn't specify details about the discussions, but Apple and Samsung both use Intel chips in PCs.

"I can't speak for Apple, but we know where they are and they know where we are," Otellini said.

The smartphone launch is a sign of progress, said Dean McCarron, principal analyst at Mercury Research. However, there are still questions on whether Intel can overtake ARM, whose processor designs are more power-efficient.

"ARM has obviously had a multiyear head start. Will there be an overnight transition? Of course not," McCarron said.