We are always hearing about how the competition between OEMs is intense. We even post comparison articles regularly. However there is a part of those smartphones that see just as much competition. The chips inside of our favorite devices. Now, we are seeing numbers released by a very familiar company. These numbers suggest a big change is needed. That company is Intel. When it comes to any aspect of electronics these days, the money seems to be in mobile technology. However, for Intel, that doesn’t seem to ring true. Instead, they are losing billions-between $1.78 and $3.15 billion between 2012 and 2013. To be fair, that $1.78 was an operating loss in 2012.
Intel has been struggling for quite some time-with personal computers sales, as well as mobile. This time we are seeing just how much of that is to blame on mobile efforts. The first quarter of 2014, the Mobile and Communications Group took a $929 million hit in operating loss. What was the revenue? Only $156 million. In the mobile aspect of chips we have smartphones and tablets. Though they have shipped around 5 million Android tablets in that quarter, it doesn’t seem to be enough. At least not with competition like Qualcomm breathing down on them.
Intel has been making promises in the way of mobile efforts since May. None has yet seen the light of day. Silvermont is what Intel has been talking up, and hopefully we will see the finished processors sometime within the year. Until then, we can only speculate as to why Intel is falling so hard. The root cause seems to be capabilities-LTE to be exact. Companies that use Intel processors in their mobile devices, have also had to install separate chips for LTE cellular connectivity. This is a major hassle for OEMs, as well as costly. This is something that Qualcomm has perfected already; and why we see Qualcomm more often.
Reps for Intel have said they have plans laid out. Details of these plans are unknown, but we do know that it involves integrated LTE connectivity. Though those plans aren’t due until 2015 or even 2016- hopefully that won’t be too late. Since the only thing keeping them running is their new Internet of Things business. As they have seen losses in the mobile divisions, they have seen profits in the Internet of Things aspect, bringing them to a total of $1.9 billion profit in the first quarter. We will definitely be keeping an eye out on Intel to see what they do to survive in this ever evolving world of technology.