Samsung is reportedly working an an Intel Atom-powered smartphone

Samsung Electronics will unveil a smartphone with Intel’s Atom chips as early as this year. It would be the first time for Samsung to develop a smartphone based on Intel’s x86 application processor. Intel has gone to the extremes of lowering chip prices to near their costs to sell products to Samsung, the world’s No. 1 smartphone maker. Wireless Business Division of Samsung Electronics has recently started the development of a smartphone based on Intel Atom Z3500 (codenamed Moorefield). Moorefield is a smartphone application processor produced in a 22 nanometer process. The 64-bit chip has a quad-core CPU (central processing unit), while its GPU (graphic processing unit) is built with the PowerVR G6430 of British-based Imagination Technologies. Moorefield supports the Android OS (operating system). Intel developed Moorefield for premium smartphones. But it has a drawback. When clocked at the maximum (2.3GHz), Moorefield consumes much power and generates much heat. To compensate this disadvantage, Intel offered to Samsung less than $7 per chip, which is around the production cost. Experts say that Intel’s offer is “unconventional,” as other premium application processors are usually sold at $20-25. Intel is taking a low price approach to gain a bigger share in the smartphone and tablet processor market, such as offering subsidies to device makers buying its chips.