Intel is going to merge its mobile division into its more lucrative PC arm, as the company looks to restructure in the face of a massive uphill slog when it comes to pushing phone and tablet sales.
The news came via an internal email sent by CEO Brian Krzanich, highlighted by the Wall Street Journal, and Intel spokesman Chuck Malloy has said that the reorganisation will happen early in 2015.
Intel has been very keen to push into the phone and tablet market, as mobile increasingly becomes more important in computing, but while the company has just about kept pace with goals it set for the end of the year, this has come at a price – literally. Subsidies paid to manufacturers to get Intel chips inside devices have meant big chunks of cash being outlaid, so much so that revenue for the mobile business dwindled to just $1 million (£640,000) in the company’s bid to grab market share.
A bid that still hasn’t been successful, so a reorganisation is hardly surprising at this point. Intel has been able to trumpet a couple of victories, such as providing the modem for Samsung’s Galaxy Alpha handset (in Europe), but these sort of wins have been few and far between.
The merger will see a new Client Computing Group created, to be headed by Kirk Skaugen, the senior VP who is currently holding the reins of Intel’s PC division.
Mulloy told C-Net: “We are seeing a blending of the lines between various devices. The idea is to accelerate our efforts for tablets and create greater efficiency."
Of course, it will also blur the lines of revenue and profit for Intel’s mobile side, with those figures being absorbed into the much stronger PC division.
You may have seen that Intel was chosen by Nokia to drive its new 7.9in Android tablet that was unveiled this morning, the N1 which has an Intel Atom (Silvermont) 2.3GHz quad-core processor at its heart.