Not long ago, it was being discussed in the media that the mobile chip division of Intel was worried about their total loss of $7 billion during the last two years. In the mid of November, a report was published about Intel’s new plan. Intel plans to merge the mobile chip business with the PC chip business. The PC chip business is stronger and a lot more stable than mobile chip business.
Intel explains why
The spokesman of Intel Chuck Mulloy gave a statement about why his company is planning to do all this. According to him, the devices like tablets, phablets, phones and PCs are gradually entering into each other’s category. The idea of merging the mobile chips with PC chips is to get the new system implemented faster and make it more efficient. This will increase the overall pace of the company’s work.
Course of action
The head of the Intel’s PC chips division is Kirk Skaugen, and he is the one who will be running the combined unit. Hermann Eul is the head of the mobile chips, and he will be deeply involved in this transitional work that is expected to complete by March 2015. Once this job is done, Eul will be assigned to a new job.
This year, it is expected that Intel is going to ship almost 40 million processors to manufacturers for tablets. However, the company is facing a big budget shortfall due to the subsidies that is being paid to the manufacturers for using its chips. As a consequence of combining the PC and mobile chip businesses, Intel is going to stop to paying subsidies to manufacturers.