Intel Corp (INTC)

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Manufacturers have tried to go with Intel's first phone attempt, on the Moorestown platform. But it never happened. It's because it wasn't ready. The software ecosystem was significantly behind(Android 2.1 when others were at Android 3.0), it required 2 more large chips than regular phones(memory and chipset). Which also meant the battery life wasn't that good.

And yet, Moorestown had more success than the Tegra 1 ever did. Medfield is more like Intel's Tegra 2 play - the one that surprises the market by being a legitimate player. I expect the next product, CT+, to score some major design wins.

People get confused with the horizontal vs. verticle models. Vertical success is instantaneous, but it's fragile, and requires success across all tiers of the model. Horizontal models are like slow moving hurricanes that need time to build momentum, but once they hit critical mass, can impact entire markets.

History has shown that consumers prefer horizontal models, and that they result in the most innovation and choice. Intel has been investing in their model for several years now. The products just entering the market are proof points for what's in store, but nowhere near the pinnical of what is possible. These products will be used in devices that offer far more choice to the consumer. We have seen it before, many times. People here doubt that it can work, but we're about to see history repeat itself - again!