Intel Technology Coming to Android Phones, Piper Jaffray Reports

Intel (NASDAQ: INTC) and Google (NASDAQ: GOOG) announced they would work together to produce future Android phones with Intel chips.

It is not clear whether Ice Cream Sandwich—the next generation of Android—will carry Intel chips. But Piper Jaffray believes that by 2013, “Intel will no longer be at a disadvantage to the ARM [microprocessors] camp due to delayed access to new versions of Android."

Piper Jaffray expects the launch of Windows 8 in 2012 to be positive news for Intel because "Intel looks well-positioned" in the transformations from computers and tablets as "customers want a bridge product from legacy Windows applications to the new world of tablets." Piper Jaffray, however, doesn't see Intel gaining a significant share in the phones and tablets market until 2013.

The unflattering news for Intel is that the U.S. demand for personal computers "has been weak for a while," according to Piper Jaffray. Demand has also been down in emerging markets, particularly China. “The corporate upgrade cycle is now almost 2 years old, and this aging upgrade cycle is likely to slow demand in 2012,” Piper Jaffray wrote.