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Intel combining PC and mobile groups

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Intel has plans to combine its PC and mobile chip-making facilities, according to a new report.

A leaked internal email from chief executive Brian Krzanich has revealed the chip giant's plans to merge its two divisions.

As the WSJ points out, while Intel still has a firm hold on the dwindling PC market, it has struggled in the thriving smartphone and tablet sector. By merging its two departments into one, Intel is hoping to bolster its fortunes in mobile.

"The market continues to evolve rapidly, and we must change even faster to stay ahead," said Krzanich.

To illustrate what a challenge Intel is facing here, its mobile and communications group posted a $1 billion operating loss last quarter, with revenue shrinking to just $1 million.

The mobile chip market is currently dominated by Intel's rival ARM Holdings, which provides the basis for pretty much every mainstream smartphone chip - and a good many tablets - on the market today.

This merger should take place in early 2015, and will see the current head of the company's PC-client group, Kirk Skaugen, also taking responsibility of the new client-computing group. The latter will oversee the sales of Intel's mobile and modem chips.

According to the letter, Intel is predicting that its mobile fortunes will shift as more and more two-in-one solutions emerge, turning the traditional tablet form into a hybrid laptop one.

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