Despite the fact that Intel had an extraordinary year generally in 2014, arriving at $55.9 billion in revenue and profit reached $11.7 billion, but its mobile unit didn’t work out quite as well. Indeed, it lost $4.3 billion, after it had officially lost $3.1 billion in 2013. Intel has lost more than $7 billion on mobile area so far in the most recent two years.
Intel Has Lost More Than $7 Billion On Mobile Area During 2013 & 2014, Hoping For A Good 2015:
Why is Intel losing such a great amount in mobile division? The organization puts intensely in mobile unit from R&D to marketing, however the single greatest element is that Intel has been basically paying Orignal Equipment Manufacturers (OEM) to utilize its chips as a heart for their gadgets. This is the reason we can see Atom-based tablets, for example, the Nokia N1 cost just $250, regardless of having specs like a $400 iPad Mini 3.
Intel trusts that by getting enough OEMs to utilize its chips, regardless of the possibility that it needs to pay those organizations, Atom processors will get to be very famous in the mobile business, who will then start to request Atom gadgets from their OEMs.
Intel’s plan is to cover as many devices as possible with its 32 bit Atom CPU, whether it gains profit from that or not. May be, Intel believe it can start charging premium costs for its chips once more. But till then Intel has to work very hard. In server and PC market Intel totally splashes everything, and everything is totally under Intel’s command, but mobile unit is very competitive area with lots of competitors with their products one better than other.
Interesting thing is that Intel have used its Quad core Atom processor in recently announced USB sized computer i.e. Intel Compute Stick. If it comes as a successful product, then ultimately it will increase the demand of Intel’s mobile chips too.
Anyways Intel is hoping 2015 a good year for their mobile division. Let’s see if it comes true.
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