Intel’s exit from the mobile phone and applications processor business will have only a minor effect on handset OEMs such as Nokia, Motorola, Samsung, LG, Sony-Ericsson and BenQ-Siemens, says market watcher Strategy Analytics.

The researcher was analysing the likely impact of Intel’s decision this week to sell its mobile phone processor business to Marvell for $600m.

Despite its dominance of the PC processor market, Intel was never really able to grow its presence in the mobile processor market beyond applications processors for PDAs.

“The main problem for Intel's mobile phone processor division was that it suffered from a lack of access to the Intel Group's latest semiconductor processes. The purchase by Marvell will change this, which should give the product range a new lease on life," said According to Stephen Entwistle, v-p of the strategic technologies practice at Strategy Analytics.

In its report on the sale the researcher firm concluded: “For several years Intel has been a small player in a small segment of the overall mobile phone processor business, and has had little penetration into basebands, and no penetration into the transceiver segment of the market. Both segments represent multi-billion dollar opportunities.”

Stuart Robinson, Director of the Handset Component Technologies service at Strategy Analytics adds, "Marvell has a good track record in the fabless chip business. It can supply high volume consumer chips profitably, despite aggressive price pressure. Marvell now commands two ARM-based designs, its existing Feroceon and Intel's XScale, giving it greater potential to penetrate the 3G handset market."