Intel is set to merge its mobile and tablet division with the part of the company that creates desktop processors. This will combine the heavy loss generating mobile group with the profitable PC chip making group starting from early next year.
In an email to Intel employees, spokesperson Chuck Mulloy said that this move comes at a time where the “lines are blurring between PCs, tablets, phablets and phones”. The company’s aim is to “accelerate the implementation and create some efficiency so that we can move even faster”.
Earlier this year following on from an earnings report, Intel stated that it had a roadmap to profitability for the mobile division but has apparently decided to go in a different direction after the group lost billions of dollars over the last few years. In this year’s third quarter alone the mobile division lost $1.04 billion.
In contrast to the loss making mobile division, Intel’s PC division has managed to post an operating profit of $4.12 billion and increased its revenue by nine per cent to $9.19 billion. This merger should help the company push its chips in to upcoming devices.
Intel has lagged behind the competition when it comes to producing chips for the mobile and tablet market, the company was particularly slow when it came to integrating LTE. Intel is now betting that the lines between mobile and PC processors will continue to erode, with more chips needed for tablets, smartphones or laptops, this merger will put Intel in a stronger place to produce them.
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KitGuru Says: Intel’s mobile division hasn’t been doing so well, maybe we will see a turn around once it merges with the PC group early next year. What do you guys think of this? Is this a good idea?
Via: The Verge