An Intel Phone. Finally!

The chipmaking giant has taken a long time to do this. But Intel has finally (and officially) entered the smartphone market. This phone has been debuted in China.

The Intel CEO Paul Otellini revealed the smartphone powered by the Intel Medfield processor at his keynote speech at the Consumer Electronics Show on Tuesday. The Lenovo smartphone will be released in China in the first half of 2012.

Intel has also revealed a partnership with Motorola Mobility (MMI) for developing tablets and phones and their first smartphone will be available later this year. Paul Otellini said, "We've built an incredible platform for our partners to innovate on."

Intel's processors rule the PC market but they had yet to make their mark in the ever growing mobile phone and mobile devices' markets. It made a feeble attempt with a Linux-based mobile operating system, called Meego, but it never worked out, especially since Nokia backed out of the deal and went to Microsoft for the mobile OS collaboration.

But only last year, Intel made a few good changes in their smartphone/mobile venture. It joined forces with Google, to optimize the Google's Android platform using Intel-based mobile hardware. Intel has yet to create a niche for itself in the smartphone market and it is vital that it does so. Today, Intel does provide server processors to mobile devices' manufacturers but its processors had still not come to the mobile market, until this announcement. Regarding servers, Intel has given a figure of 600 i.e. 1 server is needed for 600 smartphones.

Intel has also started to move forward regarding ultraboks (or thin laptops). But this move is still insignificant before the vast need of making a mark on the smartphone and mobile market.

Intel has said one server is needed for every 600 smartphones in use. It's also trying to reinvigorate demand in the PC market by pushing ultrabooks or thin, instant-on laptops. But that won't be enough in a computing industry that's increasingly shifting towards mobile.

The Lenovo phone is a start, but it will only be available in China. And whether or not Intel's partnership with Motorola will yield any successful products remains to be seen. "It's the coming out party for Medfield," Mike Bell, general manager of Intel's newly formed mobile and communications group, told Fortune. "People kept asking us if Intel can play in this space and our message was yes, but until we show something it doesn't get driven home for people."

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