Nokia To Use ST-Ericsson Chips For Windows Phone 8 Handsets
When Nokia releases its hotly-anticipated smartphones based on Microsoft’s Windows Phone operating system, at least some of the devices will be powered by silicon from ST-Ericsson, said Carlo Bozotti, the Chief Executive of European semiconductor maker STMicroelectronics.
Concept designs for Nokia's upcoming Windows Phones
The move marks a major shift for Windows Phone devices, which up to now have used chips from wireless technology giant Qualcomm. Even the HTC Trophy, which Verizon Wireless announced today — making it the latest Windows Phone to launch in the U.S. — has a Qualcomm Snapdragon processor.
The uniformity is the result of Microsoft’s precise design guidelines for Windows Phone manufacturers. In the run-up to its big Windows Phone launch in the fall of 2010, Microsoft asked handset makers including HTC, LG, Samsung and Dell to utilize the same chipsets, display size and number of camera megapixels to give users a consistent experience across devices.
Earlier this year, however, Microsoft indicated it planned to open up Windows Phone development to other chipmakers. It now appears that ST-Ericsson, a joint venture between Geneva-based STMicroelectronics and Swedish telecom equipment and services supplier Ericsson, has been admitted to the Windows Phone ecosystem.
In an interview at STMicroelectronics’ annual Analyst Day, Bozotti told Forbes that ST-Ericsson will be one of two chip suppliers for Nokia’s upcoming Windows Phones. The partnership grew out of the companies’ familiarity, added Bozotti, who sits on ST-Ericsson’s Board of Directors as Vice Chairman. ST’s former wireless business (ST-NXP Wireless) was a key chip supplier to Nokia before it was folded into ST-Ericsson in 2009.
Even after the Microsoft deal ST-Ericsson continues to have “very close relations” with Nokia, said Bozotti, and will be “an important supplier” for Nokia’s Windows Phone 8 phones. (The first/current wave of Windows Phone devices is called Windows Phone 7 but a future generation of Windows Phones will be known as Windows Phone 8, according to Bozotti.)
The first ST-Ericsson chipset that will appear in a Nokia Windows Phone is the U8500, a sophisticated dual-core system-on-a-chip that has been favorably compared to Qualcomm’s Snapdragon line because it offers multiple wireless technologies like Wi-Fi, Bluetooth, GPS and a fast, built-in HSPA+ modem, all in a compact format. Some later Nokia Windows Phones – the company has previously said it is planning to release 12 Windows Phone devices over the course of 2012 – will run on future versions of the U8500, said Bozotti.
Notching a spot in Nokia’s Windows Phones is an important win for ST-Ericsson, which has been struggling financially. In late April, the chipmaker reported a 33% year-over-year drop in first-quarter revenues and a $179 million net loss. The declines depressed STMicroelectronics’ own first-quarter results.
Despite the losses, Bozotti – along with co-parent Ericsson – remains confident in the joint venture’s prospects. Bozotti notes that ST-Ericsson is investing $1 billion ($500 million from STMicroelectronics and $500 million from Ericsson) in research and development in areas such as 4G/LTE chips. He believes ST-Ericsson can increase its share of the $20-plus-billion wireless market to 15%. That would represent a near-doubling of its current market share, though Bozotti declined to assign an exact timeframe to the goal.
ST-Ericsson says it is collaborating with seven of the top nine handset makers on devices and expects accelerated sales of new products in the second half of the year. It aims to break even during the second quarter of 2012.
“The bad news is that ST-Ericsson’s legacy products are dropping off faster than expected,” said Bozotti. “The good news is that it is gaining traction with customers, which gives it the means to succeed.”
NOTE: This post was updated on 5/20/11 to reflect that the Samsung Infuse 4G smartphone on AT&T and the T-Mobile Sidekick 4G do not run on the U8500 chipset. They do incorporate a ST-Ericsson modem called Thor.
source
Concept designs for Nokia's upcoming Windows Phones
The move marks a major shift for Windows Phone devices, which up to now have used chips from wireless technology giant Qualcomm. Even the HTC Trophy, which Verizon Wireless announced today — making it the latest Windows Phone to launch in the U.S. — has a Qualcomm Snapdragon processor.
The uniformity is the result of Microsoft’s precise design guidelines for Windows Phone manufacturers. In the run-up to its big Windows Phone launch in the fall of 2010, Microsoft asked handset makers including HTC, LG, Samsung and Dell to utilize the same chipsets, display size and number of camera megapixels to give users a consistent experience across devices.
Earlier this year, however, Microsoft indicated it planned to open up Windows Phone development to other chipmakers. It now appears that ST-Ericsson, a joint venture between Geneva-based STMicroelectronics and Swedish telecom equipment and services supplier Ericsson, has been admitted to the Windows Phone ecosystem.
In an interview at STMicroelectronics’ annual Analyst Day, Bozotti told Forbes that ST-Ericsson will be one of two chip suppliers for Nokia’s upcoming Windows Phones. The partnership grew out of the companies’ familiarity, added Bozotti, who sits on ST-Ericsson’s Board of Directors as Vice Chairman. ST’s former wireless business (ST-NXP Wireless) was a key chip supplier to Nokia before it was folded into ST-Ericsson in 2009.
Even after the Microsoft deal ST-Ericsson continues to have “very close relations” with Nokia, said Bozotti, and will be “an important supplier” for Nokia’s Windows Phone 8 phones. (The first/current wave of Windows Phone devices is called Windows Phone 7 but a future generation of Windows Phones will be known as Windows Phone 8, according to Bozotti.)
The first ST-Ericsson chipset that will appear in a Nokia Windows Phone is the U8500, a sophisticated dual-core system-on-a-chip that has been favorably compared to Qualcomm’s Snapdragon line because it offers multiple wireless technologies like Wi-Fi, Bluetooth, GPS and a fast, built-in HSPA+ modem, all in a compact format. Some later Nokia Windows Phones – the company has previously said it is planning to release 12 Windows Phone devices over the course of 2012 – will run on future versions of the U8500, said Bozotti.
Notching a spot in Nokia’s Windows Phones is an important win for ST-Ericsson, which has been struggling financially. In late April, the chipmaker reported a 33% year-over-year drop in first-quarter revenues and a $179 million net loss. The declines depressed STMicroelectronics’ own first-quarter results.
Despite the losses, Bozotti – along with co-parent Ericsson – remains confident in the joint venture’s prospects. Bozotti notes that ST-Ericsson is investing $1 billion ($500 million from STMicroelectronics and $500 million from Ericsson) in research and development in areas such as 4G/LTE chips. He believes ST-Ericsson can increase its share of the $20-plus-billion wireless market to 15%. That would represent a near-doubling of its current market share, though Bozotti declined to assign an exact timeframe to the goal.
ST-Ericsson says it is collaborating with seven of the top nine handset makers on devices and expects accelerated sales of new products in the second half of the year. It aims to break even during the second quarter of 2012.
“The bad news is that ST-Ericsson’s legacy products are dropping off faster than expected,” said Bozotti. “The good news is that it is gaining traction with customers, which gives it the means to succeed.”
NOTE: This post was updated on 5/20/11 to reflect that the Samsung Infuse 4G smartphone on AT&T and the T-Mobile Sidekick 4G do not run on the U8500 chipset. They do incorporate a ST-Ericsson modem called Thor.
source
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