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Intel's New Year's Resolution is to Merge PC and Mobile Divisions

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  • Intel's New Year's Resolution is to Merge PC and Mobile Divisions

    Intel's mobile business hasn't been booming

    Intel, the world's largest semiconductor company, is planning to combine its mobile and tablet operations with its personal computers division as part of a reorganization process that will kick off next year. The plan was announced internally through an email sent to employees by Intel CEO Brian Krzanich. In it, Krzanich talks about a rapidly evolving market place and the need to "change even faster to stay ahead."
    The changes will go into effect in early 2015 and expand the role of Kirk Skaugen, a senior vice president in charge of Intel's PC Client Group. Once the merger takes place, Skaugen will oversee a newly created unit called the Client Computing Group responsible for sales of processors and modem chips used in mobile devices, The Wall Street Journal reports.
    Mobile hasn't been all that kind to Intel. The Santa Clara chip maker's mobile and communications group posted a $1 billion operating loss in the third quarter, with revenues dropping to just $1 million, down from $353 million in the same period a year prior.
    In stark contrast, Intel's PC client group reporting an operating profit of $4.12 billion, with revenue jumping 9 percent to $9.19 billion.
    Now that the lines between the two categories are beginning to blur, Intel feels it's necessary to combine its PC and mobile business so it can be more efficient and react faster to market conditions.
    "We are seeing a blending of the lines between various devices. The idea is to accelerate our efforts for tablets and create greater efficiency," Intel spokesman Chuck Mulloy said, according to Wall Street OTC.
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