Intel Breaks Revenue Record!
Just recently, Intel has reported its total revenues from 2014 were $55.9 billion (MYR201.4 billion). This is an increase of 22% as compared to their total revenue for 2013. They have made $11.7 billion (MYR42.15 billion) of net income from their total revenue.
While all seems fine for Intel, it seems that their mobile division was not doing as good as expected. In a recent press release, it’s revealed that the revenue for Mobile and Communications Group was $202 million (MYR727.75 million). If compared with its 2013 performance, it’s revealed that it is a significant drop at 85%. Other departments of PC Client Group, Data Center Group, Internet of Things Group, and Software and Services Operating Segments have an increase of 4%, 18%, 19%, and 1% respectively as compared to the values of 2013.
While all the other divisions increased in revenue (even by just 1%) the Mobile and Communications Group was the only division of Intel with a drastic drop of revenue in comparison with its 2013 values. As Intel reported, 2014’s Q1 data revealed that they had $929 million (MYR3.35 billion) of operating loss. Thus, their actual revenue last year in that time frame was only $156 million (MYR562 million).
When asked, the CEO of Intel, Brian Krzanich, is hopeful towards improving their profitability in their mobile division. He also assured to “keep Intel focused on the next wave of computing.” An interview with Chris Walker, the General Manager of tablets at Intel, revealed that they are positive as they have upcoming new plans for tablets.
Currently, the Mobile and Communications Group includes Wifi, Bluetooth, GPS, cellular connectivity, mobile processor technologies, and tablets. Walker also revealed that they have plans to purely make processors for Androids to enhance the Android experiences with unique software features.
Intel is one manufacturer that we hope to enter the smartphone market strong. Their processors have made a difference with the PC and we still believe that they still can do so in the smartphone market space. With that in mind we do hope that Intel take steps to reverse the situation. So, what do you think Intel should do to reverse the situation and get an upper hand in this matter? Do you think they will be able to catch up? Let us know what you think in the comments below!