Intel to re-enter mobile market

Mr Otellini believes Intel's expertise in PC processors, in which it has an 80 per cent market share, can help it make inroads into mobile phones as smarter models become more like computers.

"If you accept that the value proposition of the high end of the mobile phone market is full internet access that happens to have voice, my view is that it's easier to add voice to a small computer than vice-versa," he said in an FT interview.

Its drive will be spearheaded by its new low-power Atom microprocessor. A second-generation version of the chip, expected in late 2009, will be aimed at smart phones.

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