Intel and Nokia band together

The world's largest chip maker has teamed up with the world's largest mobile phone maker to create what they say will be a "new exciting industry".

Intel and Nokia said their "technology collaboration" would deliver new mobile computing products - beyond existing smartphones, netbooks and notebooks.

But both companies added it was still too early to talk about product plans.

The deal gives Intel its first real breakthrough in the multi-billion dollar mobile-phone market.

"This collaboration will drive exciting new revenue opportunities for both companies and shape the next era of mobile computing," said Anand Chandrasekher, Intel's senior vice president of its ultra-mobility group.

Nokia's executive vice president for devices, Kai Oistamo said: "It will be compelling not only for our companies, but also for our industries, our partners and, of course, for customers."