Intel announced the changes through an internal email that came from CEO Brian Krzanich. The reorganization came as a response to the pressure for the company to widen its presence in mobile devices. With the new format, product teams will have improved lines of communication and will help Intel to enhance its reach to manufacturers which use its products.
The current Mobile and Communications Group which is responsible for smartphone and tablet platforms as well as Bluetooth, Wi-Fi, GPS and RF transceivers will be split up. Those teams that are tasked with SoC development are joining the Client Computing Group while those that focus on RF technologies will be in the new wireless R&D group.
"The market continues to evolve rapidly, and we must change even faster to stay ahead," said Krzanich in his email.
The changes, which are aimed to become effective in early 2015, will expand the responsibilities of senior vice president Kirk Skaugen who handles the PC-client group. In the new structure, Skaugen will become the head of the newly created Client Computing Group which shall handle the sales of modem chips and processors commonly found in mobile devices.
Intel's mobile division reported a loss of $1.04 billion for the third quarter of the year. At the same quarter in 2013, revenues have also declined from being $353 million to only $1 million this year. Intel attributed the results to the company's push this year in getting its chips to land into 40 million tablets. The move has required the company to pay their customers with special subsidies.
The company's PC chip-making division has displayed a better performance when it comes to revenue as it has reportedly earned $9.19 billion which is a nine percent increase. The group also had an operating profit of $4.12 billion.
In terms of marketing its chips for tablets and smartphones, Intel falls behind rivals that use the ARM Holdings PLC technology. The company pointed out that in the long run, the distinction between certain categories will fade as new two-in-one models operating in clamshell or tablet mode are on the rise.
"That will happen more and more," said Intel spokesman Chuck Mulloy.
Krzanich believes that by merging the two divisions, the distinctions between PC processors and mobile device chips will become less apparent. In the future, there will be more processors needed which can be used in laptops, smartphones and tablets. With the merging of the two divisions, Intel will gain a stronger position to produce them.
