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Sunday, June 08, 2014
Intel's Mobile Unit Needs An Injection

After a slow start, Intel's mobile-chip business needs more investments in order to reach the point where the company will win over new customers, Chief Financial Officer Stacy Smith said in a recent interview.

"In five years, every device will need to connect," Smith said in an interview with Bloomberg at the company's Santa Clara, California, headquarters. "We have to make these investments to participate in these huge opportunities."

Intel needs to ensure its future in an electronics industry where everything will be connected to the Internet.

The chip maker in April said that losses exceeded revenue in its mobile division.

Most of Intel's revenue comes from chips that run personal computers -- a market that's shrinking as consumer demand shifts toward mobile gadgets. Intel is trying to win processor orders from makers of phones, tablets, cars and an array of other devices.

The company was slow to introduce chips that were power-efficient enough to run tablet computers. That's changing now, and Intel is aiming to have 15 percent to 20 percent of the tablet market by units shipped this year, Smith said.

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