Santa Clara, Calif. ( TheStreet) -- Next Tuesday, when Intel ( INTC) reports its second-quarter results, forward-thinking investors will be looking for news about Moorestown, the company's 1.5-GHz smartphone chip that was supposed to launch in handsets this year.Intel, the world's largest chipmaker, is practically non-existent in the mobile marketplace. The company said earlier this month that it hopes to have Moorestown running in smartphones early 2011, but by waiting so long, Intel is leaving a huge market wide open to the competition. According to research firm IDC, more than 54 million smartphones shipped worldwide in the first quarter of 2010. That figure grew by 56% compared to the same quarter in 2009.
Intel's decision to offer products in those markets is rather perplexing. Intel is a chip company. Why it would want to spend time and cash in other areas when it has more pressing issues is anyone's guess. But it's also possible that the chipmaker realizes how tenuous its position is in the mobile market and wants to profit off another burgeoning space before it gets left behind as it did with smartphones. One thing is for certain: By focusing some of its efforts in unrelated markets, Intel could start worrying investors that want it to deliver the best mobile chip. --Written by Don Reisinger in New York