Last month, Josh wrote about Intel's Q3 earnings report. The company brought in $14.55 billion USD, of which they could keep $3.31 billion. Their PC group is responsible for $9 billion of that revenue and $4.12 billion of that profit, according to the Wall Street Journal. On the other hand, their mobile division is responsible for about $1 million – and it took over a billion to get that million. This has been the trend for quite some time now, as Intel pushes their square battering ram into the mobile and tablet round hole. Of course, these efforts could benefit the company as a whole, but they cannot show that in a quarterly, per-division report.
And so we hear rumors that Intel intends to combine their mobile and PC divisions, which Chuck Mulloy, an Intel spokesperson, later confirmed in the same article. The new division, allegedly called the “Client Computing” group in an internal email that was leaked to the Wall Street Journal, will handle the processors for mobile devices but, apparently, not the wireless modem chipsets; those will allegedly be moved to a “wireless platform research and development organization”.
At face value, this move should allow Intel to push for mobile even more aggressively, while simultaneously reducing the pressure from investors to give up and settle for x86 PCs. Despite some differences, this echos a recent reorganization by AMD, where they paired-up divisions that were doing well with divisions that were struggling to make a few average divisions that were each treading water, at least on paper.
The reorganization is expected to complete by the end of Q1 2015, but that might not be a firm deadline.