Intel is losing billions

[GoodBytes]

The Verge is reporting that Intel is losing billions each year on tablets and smartphones, as few devices uses its processors, and PC sales have been dropping.

In recent months, Intel has been under pressure to explain why personal computers haven't been selling quite as well. But the chipmaker may have another pressing concern: losing billions of dollars on mobile.

In 2013, Intel's mobile chip division lost a staggering $3.15 billion, after posting an operating loss of $1.78 billion in 2012. In the first quarter of 2014 alone, the Mobile and Communications Group saw a $929 million operating loss on a meager $156 million in revenue, according to new financial results issued today by the company.

Source: http://www.theverge.com/2014/4/15/5618126/intel-is-losing-billions-every-year-on-tablets-and-smartphones

Image Source: http://bgr.com/tag/intel/

[Nineshadow]

There aren't any very well sold tablets/phones with intel processors in them.It's to be expected.They have the ultrabook market though.

[StingBull]

Intel is playing a long game. They are losing now but if they decrease the power usage of x86 enough to match ARM they might just dominate the mobile world.

[Bluejay0]

CEO: WE NEED A BACK UP PLAN

Scientists: We do...

CEO: No... not that..

Scientists: IT MUST BE DONE!

 

few weeks later...

 

Intel has introduces consumer 8-Core unlocked processors at 250$!!!

[madscientist56]

nooooo not intel

[FloRolf]

They should just cut their prices on i5's and i7's to a more like amd range and stop wasting time with tablets and phones.

[DudeWazap]

They will be fine. But they should just not focus on tablets/phones. Ultra books are fine.

[Jaybird]

considering just 20 years ago 1 in 1000 people had a personal computer. and now eveyone has atleast 2 to their name. thats nearly a forest fire worth of growth. also considering people do not upgrade a pc  very often it is unlikely that cpu sales are going to continue to rise. 

[mvitkun]

They should just cut their prices on i5's and i7's to a more like amd range and stop wasting time with tablets and phones.

because AMD is doing so well as far as revenue goes......

[Nineshadow]

Intel has introduces consumer 8-Core unlocked processors at 250$!!!

Nope.That would only benefit us,tech enthusiasts,and maybe some small companies.Intel is losing big time on the mobile segment,because ,so far, they haven't managed to make x86 a true competitor to ARM.

[Bluejay0]

Nope.That would only benefit us,tech enthusiasts,and maybe some small companies.Intel is losing big time on the mobile segment,because ,so far, they haven't managed to make x86 a true competitor to ARM.

 

wut evr men itz still cool 

[FloRolf]

because AMD is doing so well as far as revenue goes......

 

Well, thats not what intel should care about. I mean, if you had the choice between a 6300 and a 4670k for the same price, what would you chose? When they cut the prices to that level, there wont be any amd systems left (unless they cut their prices too again) and intel would sell so much more while even making more money.

[Vitalius]

because AMD is doing so well as far as revenue goes......

They are breaking even/making a tiny bit of money. 

That's not losing billions.

[thunderdog512]

I have never seen a phone with an Intel chip in it so I can see why they are loosing money.

[Mixzzz]

They should just cut their prices on i5's and i7's to a more like amd range and stop wasting time with tablets and phones.

I hope you do know that mobile market is a really big market and if intel gets into it finally... They will easily earn twice as much as they have lost now...

[SkulD]

I have never seen a phone with an Intel chip in it so I can see why they are loosing money.

I have a phone with an intel dual core inside, pretty fast, but when it gets hot it starts to glitch, artifacting and even the screen starts to lose accuracy when i use the touch screen .

 

It only happens when i use it for a long period of time (for cel phones).

[mr moose]

It's lot more complicated than just just having over priced CPU's,  If dropping their prices was  going to fix even 1/8th of the budget problems they would have done it already. 

 

But here is some food for thought,  the mobile market has certainly kept Nvidia in profit since 2010.  AMD is really only posting a profit now because of console sales. Seeing as Intel has neither of these markets they have may have to stay in the red for longer until they get a foot hold in one of them.

 

EDIT: since making this post it has been bought to my attention that AMD posted a loss for the first quarter '14.

[LarsReviews]

Intel should make better APUs like AMD. Also I haven't seen a Intel phone yet, except the razr i.  

[mr moose]

Intel should make better APUs like AMD. Also I haven't seen a Intel phone yet, except the razr i.  

nearly all their chips are APU's.

[Kamina]

Go ARM or go home!

 

Doesn't it cost even more for sophisticated fabrications plants to match ARM's power efficiency? 

[ionbasa]

They should just cut their prices on i5's and i7's to a more like amd range and stop wasting time with tablets and phones.

Price and demand. They may lower the price, but doing so will cause a shortage because of high demand and limited supply. Personally I think their chips are priced at what the market deems favorable.

 

They aren't in it for the short term investment, but rather the long run dominance. There are bound to be short term losses.

[LarsReviews]

nearly all their chips are APU's.

But they could do way better then the HD4600 on the desktop chips

[mvitkun]

Well, thats not what intel should care about. I mean, if you had the choice between a 6300 and a 4670k for the same price, what would you chose? When they cut the prices to that level, there wont be any amd systems left (unless they cut their prices too again) and intel would sell so much more while even making more money.

The day that you see the newly released unlocked i5 variant sold for $120 (at all stores) is the day that intel has a liquidation sale

[The_Strict_Nein]

It's Intel. The day they go under is the day we are all uploaded to one big server and no longer need out own personal computers.

 

However, they really need to crack this mobile market. They can manage a quad-core celeron at 10W now. If they can just keep pushing though the 14nm boundary I believe that they can deliver a dual-core phone processor with Intel's legendary IPC with very little heat out-put

[The_Strict_Nein]

But they could do way better then the HD4600 on the desktop chips

 

Hence Iris Pro. That thing trades blows with the A10-7850K (I know it's a fair bit behind but considering it's not the main feature it's damn impressive) and is coming as standard on all Broadwell Chips