Intel “on track” on mobile cost cuts - Mobile World Live

Intel “on track” on mobile cost cuts

16 JUL 2015

Intel said sales of its tablet products increased to 9.9 million units in Q2 2015, a year-on-year growth of 11 per cent, as it looks to improve the performance of its loss-making mobile unit.

In a conference call, Intel said that it is “on track to our annual goal of improving mobile profitability by $800 million”. About a third of this has been realised to date.

Intel has integrated its mobile business into its Client Computing Group, meaning its performance is not broken-out separately – it had been performing poorly when reported separately. The company has been widely criticised for missing the mobile boat, although it is working hard to regain ground.

Brian Krzanich, CEO of the company, said at Intel’s investor meeting it will update on its programme to reduce costs and losses.

Sales in Intel’s Client Computing Group, which includes its PC and laptop business, were $7.54 billion, down 13.5 per cent from $8.72 billion.  Krzanich noted “excitement in the industry” ahead of the launch of new Intel products as well as Microsoft’s new Windows 10 platform.

Sales in the IoT group stood at $559 million, up 3.7 per cent year-on-year. While this group is still small, it provides Intel with another avenue to find growth as the mature client business slows, and indeed as Intel is in on the ground floor, may be the better long-term bet than mobile.

On a group level, the company reported a net profit of $2.7 billion, down 3 per cent year-on-year, on revenue of $13.2 billion, down 5 per cent.

Krzanich said that this was “consistent with our outlook”, as a decline in the PC business was partially offset by 10 per cent growth in its data centre segment, as well as NAND revenue and IoT growth.


Steve Costello

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