Intel announced that it will now report the operating results of its PC and mobile devices together in its quarterly reports. The move is primarily aimed to be in-line with a unified sales pitch, rather than dividing multiple pitches from two divisions, according to the chip maker.
To make numbers look better
From April 14th onwards, Intel will report results showing the numbers from the PC Client Group and the Mobile and Communications Group in the Client Computing Group. With the new strategy, the results will certainly look better.
Michael Mauboussin: Here’s what active managers can do
The debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More
The chipmaker has lost around $1 billion a quarter in its Mobile and Communications Group, while the PC Client Group is Intel’s best profit-making division as the chip maker is still the world’s biggest manufacturer of chips for PCs.
Cara Walker, a spokesperson for Santa Clara, California-based Intel, said that the change was not made to hide the losses of the company in mobile, but to reflect the corporate organizational move. “We previously had two organizations selling solutions into organizations, and now that will be one,” Walker said.
According to Patrick Moorhead, an analyst at Moor Insights & Strategy, “The purpose of the change is to align financials with reporting structure that Intel changed a few months back.” Moorhead said that now it won’t be easy to know the exact developments in the mobile unit, but Intel will keep on reporting details. Intel stated that it will update on the performance of the smartphone and communications efforts.
Intel focusing on new segment
Last year, in November, the chip maker said that it would enhance mobile profitability by $800 million in 2015. However, with the division facing a loss of $1 billion per quarter, the company needs to do something more than just the minor improvements.
After the reorganization, the new groups will be Client Computing Group (with chips for consumer PCs, laptops, smartphones, tablets, and mobile communications components, wireless networking, and wired networking); the Data Center Group; Software and services; McAfee security software; and other revenues.
Intel is focusing on one new technology area, wearables, which will be separate from the new group, and will be reported in another area of its financial reporting called ‘All Other.’ Through this segment the chip maker is expecting to expand into a bigger segment of the market which is on the verge of rapid growth.