In a move that highlights just how fast the lines between PCs and mobile devices are blurring, Intel has said that it will merge its loss-making Mobile and Communications Group with its profit-making PC Client Group. The move was announced in an internal email from CEO Brian Krzanich.
According to company spokesman Chuck Mulloy, the changes are designed to improve lines of communication between product teams and help the company better reach its clients. “Industry-wide, the lines have been blurring”, he said. “The question is whether we’re organized to map to where the market is going”.
As part of the reorganization, a new division dubbed Client Computing Group will be created next year, which will be headed by Kirk Skaugen, who currently leads the PC Client Group, and will include teams that currently develop the company's desktop and mobile processors.
The remaining teams in the Mobile and Communications Group will become part of a new wireless R&D group. Herman Eul, who currently spearheads the group, will stay on to oversee the transition and until a new post for him is announced, something which will likely happen after the first quarter of 2015.
The news comes nearly a month after the chip giant posted its quarterly revenue report for Q3 2014, with its mobile division recording a $1.04 billion loss, and revenues declining from $353 million in Q3 2013 to just $1 million this year.
This lack of profit and revenue can be partially attributed to Intel's aggressive deals and promotions, wherein the company hands out cash to manufacturers to ensure that its chips are featured in all of their products. The company aims to get its chips into 40 million new tablets this year.