Intel to combine the PC and mobile processor divisions in an effort to improve its mobile performance

Intel to combine the PC and mobile processors division in an effort to compensate the loss-making mobile division

In an effort to save its loss-making business, chip-maker Intel will merge its cash-earning PC processors and the loss-making mobile processors divisions. As a result of the transition, the company will further blur the line between tablets and laptops.

The company has plans to make a new division called Client Computing Group next year, wherein it will bring the teams that make desktop and laptops processors (Core), and teams that develop mobile processors (Atom) under one roof. The company believes that it will bolster the communication between product teams. “The lines are blurring between PCs, tablets, phablets and phones,” Chuck Mulloy said. “The idea is to accelerate the implementation and create some efficiency so that we can move even faster.”

The changes were announced in an internal email from CEO Brian Krzanich, company’s spokesperson Mulloy told press. “Industry-wide, the lines have been blurring,” Mulloy said. “The question is whether we’re organized to map to where the market is going.”

The convergence between different divisions does make sense, as the company was already making several processors, including the Intel Core M chips, that are used in laptops, as well as tablets.

The transition will be completed early next year. As part of it, the company will break the Mobile and Communications Group. Wondering why the company is doing this now? Just recently, the company announced an operating loss of $1 billion in the third quarter.

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