LONDON — Qualcomm Inc. is hoping to win chipset business from mobile phone maker Nokia, now that the companies have at least partially settled some of their differences, it emerged at the chip maker's Analyst Day.

According to Richard Windsor, who tracks communications equipment at Nomura Securities, (London), Qualcomm said talks are under way, but there is no certainty Nokia will use any parts from the mobile handset chip maker.

Windsor suggested Qualcomm really only stands a chance to win chips business from Nokia in areas where the Finnish phone maker has made no investments, such as chipsets for Mobile Internet Devices (MID) or possibly for handsets that could receive MediaFLO based mobile TV.

"If MIDs take off, then Nokia will need to address this space and it is here that we think Qualcomm could see some success with its Snapdragon chipset family," suggests Windsor.

He adds that in the U.S, the mobile TV war is over and if Nokia wishes to address the segment thgere, it will need to incorporate MediaFLO into its phones.

"We think that it is extremely unlikely that Qualcomm will win any traditional baseband business from Nokia within the next 5 years. This is because Qualcomm's proposition is only very attractive to those with no IP and relatively low volumes."

Nokia, Windsor adds, has a huge amount of IP and is shipping around half a billion units a year. "In this instance it makes no sense for Nokia to switch to buying chips when its scale allows it to design them itself at lower cost."