Intel has announced that it will fold its mobile division into single operational division and merge it with PC division under one roof. With the changing market scenario Intel has taken this step to form a new division early next year called the Client Computing Group.
Under the new division the teams will develop core processors for desktops and laptops as well as those that develop its atom chips fro smartphone and tablets. As has reported by the Wall Street Journal the move will help to bring life to the ailing mobile division which has incurred huge losses.
The plan was announced through an e-mail send to employees by Intel CEO Brian Krzanich. According to Wall Street Journal, the change expands the role of Kirk Skaugen, senior Vice President, in charge of Intel’s PC client group. After the merger Skaugen will oversee a new unit responsible for sales of processors and modern chips used in mobile devices.
Until recently Intel served PC market with powerful Core processors and the smartphone and tablet markets with its low power atom chips, but those lines are no longer so clear. The emergence of Hybrid computer which can switch between a laptop and a tablet has done so much to blur the boundary.
According to the reports, the changes will be made after January 1 2015. The teams that develop mobile processor will join the new client group while the remainder, which builds modems, will be part of a new wireless R&D group.
Herman Eul who leads the mobile group, will oversee the move to the new structure until at least the end of the first quarter, with a new role to be announced for him after that. The Mobile and Communications Group reported an operating loss of more than US$1 billion in the third quarter, in part because it’s been making payments to tablet makers to encourage them to use its chips. As a result of those and other efforts, Intel has said it aims to get its processors into 40 million new tablets this year.