Intel to reorganize its PC and mobile chip groups come 2015

It has been a little while since we’ve heard anything about Intel and its mobile chip efforts, but the division doesn’t look to be having the easiest of times. In a bid to improve its mobile standing, Intel is planning a little reorganization. The company will be combining operations for PC and mobile chips under one roof, according to an email sent to employees.

Intel’s Mobile and Communications Group, which is responsible for mobile chip sales, posted a $1 billion operating loss in the last quarter after revenues shrank considerably, down to just $1 million from $353 million a year earlier. Intel notes that it incurred large expenses from subsidies aimed at pushing its tablet chips into 40 million new devices this year. However, there have not really been any notable Intel devices pass our way this year.

The market continues to evolve rapidly, and we must change even faster to stay ahead, – Intel Chief Executive Brian Krzanich

As part of the reorganization, Intel’s mobile and PC operations will be merged into a new division called the “Client Computing Group”, which will cover sales of mobile processors and modems. The responsibility of overseeing the new group will fall to Kirk Skaugen, a senior vice president who currently runs Intel’s PC Client Group.

This news comes as Intel questioned whether mobile product and processor categories will remain as distinct in the future. The company pointed out that tablet products have started to creep into the laptop space and 2-in-1 phone products, but these trends aren’t widespread yet. It will be interesting to see what new products Intel will be aiming its processors at next year.

It is not quite clear exactly what, if any, implications this reorganization will have for Intel’s mobile chip products and roadmap. A merger across these two different units suggests that Intel may want to streamline its broader product line-up. No bad thing given the range of codenames and small product differentiations that the company’s mobile chip line-up currently suffers from. We will probably know more when these changes are implemented in early 2015.