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.
All Intel makes is mobile
All Intel makes is mobile chips nowadays. iGPU’s and low power is all the rage. Haven’t seen decent performance increases since 2011 besides them getting tired and just slapping more cores for an extra $500 off their Xeon line.
You’re funny Scott: “Despite
You’re funny Scott: “Despite some differences…” How about the losses in the intel mobile division will be like subtracting an ant’s weight from that of an elephant. AMD is not so fortunate as to be able to completely bury the merged losses.
Gee, I see lots of i7s being
Gee, I see lots of i7s being bought. Don’t look very mobile or low power to me. There will always be a performance market that will trade off power and size for speed. No, this is about something else.
I usually see this sort of consolidation happen just before something else. Like layoffs and outsourcing. Ask GE, HP, etc, etc.
What those dual core U
What those dual core U versions of the i7, it’s not what I would call an affordable chip, but too many laptops are being hobbled by Intel’s failed ultrabook attempts, and these overpriced ultrabooks are often times more expensive than Apple’s competing products, and the ultrabooks do not, in most cases, even offer thunderbolt. There is not so much in the way of quad core i7s, on the latest Intel microarchitecture, owing to Intel’s attempts at bating its way into the mobile market, and the failed ultrabook initiative has resulted in a delay in the newest mainstream laptop SKUs from Intel, just look at all those Mac Minis with dual core i7 ultrabook SKU, and not a quad core i7 to be found, so many dispirited Mac Mini users.
Now the market is going to be full of these Ultrabook SKUs, ever wonder what sort of deal Intel gave to Apple, to take these underpowered SKUs, and foist them on the Mac Mini users, much to the Mac Mini users disappointment. Intel must have a mothballed fab filled to the gills, with these U SKUs and the U in unwanted comes to mind, for anyone expecting a more powerful i7 based regular form factor laptop, because there will be a wait, just look at Apple’s product refresh, no new mainstream CPU SKUs for chips based on the latest, its the M version or no version at all until next year for the latest microarchitecture. I do not think Apple was too pleased with the delay, but the supply chain is now clogged with too many U chips that will have to be foisted on the OEMs, before Intel releases any new product into the market. The Mac Mini device that must be plugged in to be used, hobbled with even a less powerful CPU, and some marketing spin claiming the Most power efficient “desktop”, and the Mac Mini users, clamoring for a desktop class SKU for the Mac Mini, but getting a underpowered, for even laptop standards, SKU instead. The regular form factor laptop SKUs are going to be in short supply for some time to come, so much for the return of the PC/Laptop market, it will not see my yearly laptop refresh dollars, and those 2012 quad core Mac Minis are suddenly a much sought after SKU, and harder and harder to find. Thanks for the gimping Intel, how’s that contra revenue working out for you.
go fuck yourself
go fuck yourself
Either contribute or ignore
Either contribute or ignore please, while mildly amusing your response does not further the conversation.
stock is above $35… i would
stock is above $35… i would say they’re doing pretty well