Intel has just published its total revenue for the year 2014, totaling $55.9 billion. This is a record-setting year for Intel, boasting a net income of $11.7 billion, up 22% from 2013. In fact, the company’s Q4 of 2014 was also record-setting, up 6% from 2013. While all seems to be well in the company overall, Intel’s mobile division continues to plummet.
Take a look at these stats given in the press release:
- PC Client Group revenue of $34.7 billion, up 4 percent from 2013
- Data Center Group revenue of $14.4 billion, up 18 percent from 2013
- Internet of Things Group revenue of $2.1 billion, up 19 percent from 2013
- Mobile and Communications Group revenue of $202 million, down 85 percent from 2013
- Software and services operating segments revenue of $2.2 billion, up 1 percent from 2013
As you can see, the company’s Mobile and Communications Group is the only division that hasn’t generated a gain throughout the entire year, which is currently down a massive 85% from 2013. To clarify, Intel’s Mobile and Communications Group includes Wifi, Bluetooth, GPS, cellular connectivity and mobile processor technologies. Brian Krzanich, CEO of Intel, seems to remain confident in the matter, as he explains:
… There is more to do in 2015. We’ll improve our profitability in mobile, and keep Intel focused on the next wave of computing.
We caught wind of these losses last year soon after the company posted their Q1 results for 2014. Last year’s Q1 numbers posted a $929 million operating loss, adding up to only $156 million in revenue.
Intel has launched a number of different products from the Compute Stick to the recently-announced Curie module that may make its way into a wearable near you. Oh, and remember that super thin Dell Venue 8 7840 tablet we saw at CES 2015? That runs an Intel Atom Z3580 processor and totes the company’s new RealSense 3D camera. Intel hasn’t been completely scarce in the mobile world, but their efforts so far haven’t been generating enough revenue.
We interviewed Chris Walker, General Manager of tablets at Intel, at CES 2015. Mr. Walker is also keeping positive, as he relays to us the company’s 2015 plans for tablets (which is included in the Mobile and Communications Group). Intel plans to branch out of solely making processors to enhancing the Android experience with other unique software features. For more information on Intel and their tablet and mobile plans, check out the interview below.
So what do you think Intel could do better in the mobile space to get out of this funk? Let us know your thoughts!