The Health of Intel's Many Divisions...

Subject: General Tech, Processors, Mobile | April 16, 2014 - 05:40 PM |
Tagged: Intel, silvermont, arm, quarterly earnings, quarterly results

Sean Hollister at The Verge reported on Intel's recent quarterly report. Their chosen headline focuses on the significant losses incurred from the Mobile and Communications Group, the division responsible for tablet SoCs and 3G/4G modems. Its revenue dropped 52%, since last quarter, and its losses increased about 6%. Intel is still making plenty of money, with $12.291 billion USD in profits for 2013, but that is in spite of Mobile and Communications losing $3.148 billion over the same time.

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Intel did have some wins, however. The Internet of Things Group is quite profitable, with $123 million USD of income from $482 million of revenue. They also had a better March quarter than the prior year, up a few hundred million in both revenue and profits. Also, Mobile and Communications should have a positive impact on the rest of the company. The Silvermont architecture, for instance, will eventually form the basis for 2015's Xeon Phi processors and co-processors.

It is concerning that Internet of Things has over twice the sales of Mobile but I hesitate to make any judgments. From my position, it is very difficult to see whether or not this trend follows Intel's projections. We simply do not know whether the division, time and time again, fails to meet expectations or whether Intel is just intentionally being very aggressive to position itself better in the future. I would shrug off the latter but, obviously, the former would be a serious concern.

The best thing for us to do is to keep an eye on their upcoming roadmaps and compare them to early projections.

Source: The Verge
April 16, 2014 | 06:59 PM - Posted by dylan522p (not verified)

It must be that Intel is aggressively positioning themselves. IDK if yo guys have been watching the mobile keynotes or read any of the things sent to stock owners, but they just keep driving down costs. They recently announced at IDF that they were gonna sell quadcore baytrail at the same price as mediatek octocores. It's kinda ridiculous considering the die sizes and performance delta between the two. They are selling most Baytrail insanely cheap. It's almost for sure they are going after market share then when they have a completely superior product (they only have the best CPU, GPU and radio lag behind) they would go for sales.

April 16, 2014 | 10:14 PM - Posted by pdjblum

Better you visiting the Verge than me.

April 17, 2014 | 06:46 AM - Posted by Anonymous (not verified)

There is a software group included in the Internet of Things division, selling control software, so just what are the sales from Quark, these new divisions can include other money makers that mask the real market viability of the devices themselves. The Internet of things if full of ARM based CPUs, some that cost a few dollars, or less, does Intel have the ability to compete on the razor thin margins that the Internet of things market demands, those chip fabs cost a lot to run, and so does the R&D. What is the complete breakdown of the products in Intel Internet Of Things Division?

The "Internet of Things" market has been around for decades before this buzzword/phrase was coined, and ARM has been its supplier, why the sudden intrest from Intel.

June 9, 2014 | 03:47 PM - Posted by uroloogista (not verified)

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