Dvorak: Intel hopes Wind River acquisition puts them in the smartphone game

Financing Options“Once Intel Corp. said this week it was going to acquire Wind River Systems for $884 million, I knew the world was about to change,” John C. Dvorak writes for MarketWatch.

“It all stems from the sudden smart phone mania that pundits say will be in full swing this summer,” Dvorak writes. “Apple is the clear leader on this game. Whatever it does, everyone else must do. It could be a high-definition touch screen, the welcoming of third-party application programs or developing and opening an ‘app store’ to sell software. At least for the next year or two, Apple will set the standard.”

MacDailyNews Take: Miracles do happen; so far he’s making sense.

Dvorak writes, “Everyone else, meanwhile, is fighting for second place with hopes to knock off Apple in the long run. Intel could end up having the best chance.”

“Intel surely was not pleased as this new smart phone-computing platform emerged with it, the biggest microprocessor company in the world, standing on the sidelines chatting with Dell about a new laptop,” Dvorak writes. “Meanwhile, the iPhone is using an ARM microprocessor. That’s left Intel as the odd man out.”

“Wind River has been making a move on mobile handheld devices — and mobile phones in particular — since 2005, when it announced its ‘Platform for Consumer Electronics, Linux Edition.’ It was expected to play a role in the cell-phone business right away,” Dvorak writes. “Unfortunately, the mobile-phone business was dominated by merely functional phones and any and all smart phones were dead meat until Apple came along and showed people how to do them right. Perhaps ahead of its time, Wind River sat at the sideline grinding its teeth while Google came up with its own Linux phone.”

Dvorak writes, “Intel is behind in the race, but once it turns its attention to the problem, it can catch up and pass the competition rather quickly… This should be fun to watch. The 800-pound gorilla just entered the room.”

Full article here.

MacDailyNews Take: Interesting – if, for nothing else, a rare burst of clarity – but Dvorak completely fails to mention the 8,000-pound gorilla in the room: Apple, with their P.A. Semi acquisition about which CEO Steve Jobs has already publicly-stated: “PA Semi is going to do system-on-chips for iPhones and iPods.”

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