If Intel and Nokia would not have joined hands they must have been competing in the MID, Netbook segment. Nokia has been struggling to make its enty into the MID Netbook space.
With the increasing penetration of Atom processor in the MIDs UMDs it becomes difficult for Nokia to compete on ARM based processor.
Nothing specific has been divulged about the products on which the two would collaborate, rather the partnership has been termed as a technology partnership.
In a bid to oversimplify this, it can simply be seen as a broader supplier base for Intel's chips and for Nokia, easier entry into the MID segment, in which it has not been so successful in past.
Moreover, it can offer some resistance to increasing competition from Apple, Palm RIM.
From Intel's perspective, licensing Nokia's HSPA/3G modem technologies can provide it definate milage in powering netbooks/notebooks with 3G internet access.
Besides this, Intel's mobile platform Moblin can be used by the two for mutual benefit.
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