Models show the latest version of LG Electronics’ Optimus smart phones at an event in Seoul in October. The Korean tech giant has been paying the price for falling behind rivals such as Samsung Electronics and Apple in high-margin products like smart phones and touch-screen tablets. (Korea Times)

LG Electronics will hold hands with giant chip maker Intel. This will be Intel’s first forey into manufacturing smart phones powered by Google’s Android mobile software.

However, an executive from LG (asked not to be identified) simply added, “Personally, I doubt that LG Electronics will release phones running on Android software based on any Intel platform. It’s quite possible for LG to push Intel’s reference mobiles but with huge subsidies from Intel for promotion”.

So, is there another reason why Intel has joined with LG?  Yes. AMD.

“Intel is getting nervous over the growing emergence of AMD, therefore, the partnership with LG will be good for the chipmaker,’’ an executive commented.

AMD Korea doubled its revenue last year, because of its partnership with Samsung, LG’s direct rival.

“Intel is giving out more money to cash-strapped LG Electronics in return for a closer partnership. I still have doubts about the marketability of the upcoming Intel Android phone,’’ said an industry watcher.

Another tech couple, seeking a golden return, while trying to keep their rivals at bay.

BELOW:  2010 announcement made by Intel and separately by LG, on their joint smart phone venture, which didn’t see light of day.