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November 18, 2014

Intel to combine mobile and PC businesses

Restructuring is set for completion by early 2015.

By CBR Staff Writer

In the midst of a struggle to gain traction in mobile computing, Intel has revealed plans to merge its loss-making mobile phone and tablet divisions with its profitable PC chip-making unit.

The restructuring is set for completion by early 2015.

Intel spokesman Chuck Mulloy told Bloomberg: "The lines are blurring between PCs, tablets, phablets and phones.

"The idea is to accelerate the implementation and create some efficiency so that we can move even faster."

The new reorganised unit will be headed by the current head of PC-chips business Kirk Skaugen, while the current in charge of phone and tablet chips Hermann Eul will help during the transition, awaiting a new post during the Q1 of 2015.

The US chipmaker noted that the mobile division had been a ‘roadmap to profitability’, while the latest decision comes amid plans to try a different approach following the loss experienced by the group over the last few years.

During 3Q14, Intel’s mobile unit reported a $1.04bn loss, with revenues dropping from $353m during the corresponding quarter last year to just $1m this year.

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The latest move follows the chipmaker’s plans to sell off its enterprise security software business within the following few years.

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