BARCELONA (TheStreet) -- First it was the snub by Apple (AAPL). Now Intel's best friend, Microsoft (MSFT), has shifted its storied allegiance, opting to use Qualcomm's (QCOM) chip for its new Windows Phone 7 smartphones.
Microsoft's big announcement at the Mobile World Congress tradeshow in Barcelona Monday was bad news for Intel. Microsoft's list of mobile phone tech partners include AT&T (T), Deutsche Telekom (DT), Verizon (VZ), Sprint (S), Vodafone (VOD), Dell (DELL), HTC, Hewlett-Packard (HPQ), Samsung and Qualcomm.
Intel wasn't mentioned.
"Qualcomm is the only chip vendor qualified for the new Microsoft mobile OS launch," wrote Morgan Stanley analyst Ehud Gelblum after discussions with the companies at the tradeshow. All eight of the phones expected to arrive before Christmas "are being designed on Qualcomm's Snapdragon chips," Gelblum wrote in a research report Wednesday.This is the second major win for Qualcomm, as first Google (GOOG) picked the Snapdragon chip for its Nexus One phone. For Intel, the rejection by Microsoft comes a month after TheStreet first reported that Intel missed the cut on the Apple iPad. The shutout from the high-profile Apple iPad means Intel is poorly positioned in the closely-watched emerging tablet market.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV