Intel to Combine PC, Mobile Chip Businesses
The move by the world's largest chip maker comes as the lines between PCs, tablets and smartphones become less defined.For the past few years, Intel executives every three months have had to go before financial analysts and journalists and talk about a mobile chip business in which they've invested billions with little to show in return. Now, according to a report in the Wall Street Journal, the giant chip maker will combine its mobile business—which includes silicon for smartphones and tablets—with its strong PC unit, creating a business that will focus on everything from desktops to handhelds. The new client unit comes as the distinctions between the various units continue to fade. Two-in-one and convertible systems can be used as a traditional notebook or a tablet, while the displays on smartphones continue to get bigger while those on tablets shrink, giving birth to what are being called "phablets." Intel spokesman Chuck Mulloy, confirming the reorganization to Businessweek, said that given the rapidly evolving form factors, the changes within the company will enable it "to accelerate the implementation and create some efficiency so that we can move even faster.” The new group will be led by Kirk Skaugen, senior vice president and general manager of Intel's PC Client Group. Meanwhile, Herman Eul, vice president and general manager of the chip maker's Mobile Communication Group, will remain in the position to help with the transition, and then will be given another job within the company, according to a memo CEO Brian Krzanich reportedly sent to employees.
The reorganization reportedly will take until early next year to complete.