LG to build Mobile Internet Devices

LG Electronics will be using Intel’s latest generation technology to build new MIDs (Mobile Internet Devices). This was announced by Intel at the Mobile World Congress in Barcelona.

LG and Intel will jointly build these devices using Intel processor ‘Moorestown’. Devices will also be using Moblin, a Linux open-source operating system. Devices will hit the market in 2010.

Intel and LG have been jointly working on products including LG netbook which uses Intel Atom processor and full-fledged notebook built with Intel’s Core processor. Both companies are now developing mini-computers which could be used for making phone calls with the help of wireless internet connection. This product will be seen as a device between a smartphone and a netbook.

In the backdrop of deteriorating global economy, Intel is exploring markets for growth since its main business of PC processor is declining due to drop in sales of desktop computers.

Intel sees vast scope for growth in mobile devices particularly MIDs. Overall mobile-phone market fell 12.6% worldwide while smartphone sales were up by 22.5% in the 4th quarter.

Intel feels that consumers need less bulky and more powerful device compared to laptop and smartphone. MID could be used to make phone calls using internet, watch video, or download information from web.

However MID will require wireless internet access, but Wi-Fi is not everywhere. Those opting for a device with ubiquitous coverage will have to pay additional fee. Intel is tacitly advising consumers to sign up for one more wireless service plan.

By the time MIDs roll out in the market, operators might be ready to provide more affordable service plan to consumers.

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