Intel Should Exit Mobile, Analyst Says
Jessica Lipsky, EETimes
5/7/2014 07:30 AM EDT
SAN FRANCISCO — Analysts at JP Morgan are calling for Intel to shut down its mobile and communications group to improve corporate profitability in the wake of poor earnings per share in the first quarter of 2014. But the x86 giant and at least one other analyst said the company should stay the course in the hotly competitive smartphone and tablet market.
“We continue to believe mobile is unprofitable for Intel," a JP Morgan statement read:
We continue to believe Intel will lose money and not gain material EPS from tablets or smartphones due to the disadvantages of x86 versus ARM and overall low profitability of the tablet and handset processor market. If Intel were to shut down its mobile business, we estimate it could unlock roughly $0.50 in 2015 EPS.
The mobile and communications group saw a $3.1 billion operating loss in 2013, with 1Q 2014 losses hitting $929 million and revenues at $156 million. While Intel officials acknowledged the loss, several were quick to call recent financial numbers an “investment” in the mobile ecosystem.
To read the full article, click here
Related Semiconductor IP
- General use, integer-N 4GHz Hybrid Phase Locked Loop on TSMC 28HPC
- JPEG XL Encoder
- LPDDR6/5X/5 PHY V2 - Intel 18A-P
- ML-KEM Key Encapsulation & ML-DSA Digital Signature Engine
- MIPI SoundWire I3S Peripheral IP
Related News
- Chips&Media's 'WAVE' IP Successfully Enters the Global Mobile Market
- Moto semi spin-off seen as likely after Galvin's exit
- Wi-LAN Announces Exit of Equipment Business to Concentrate on Core Broadband Wireless Intellectual Property Business
- Philips and TSMC Announce Joint Plan to Facilitate Orderly Exit by Philips from TSMC Shareholding
Latest News
- GlobalFoundries and Navitas Semiconductor Partner to Accelerate U.S. GaN Technology and Manufacturing for AI Datacenters and Critical Power Applications
- VLSI EXPERT selects Innatera Spiking Neural Processors to build industry-led neuromorphic talent pool
- SkyWater Technology and Silicon Quantum Computing Team to Advance Hybrid Quantum-Classical Computing
- Dnotitia Revolutionizes AI Storage at SC25: New VDPU Accelerator Delivers Up to 9x Performance Boost
- Breker Verification Systems and Frontgrade Gaisler Collaborate on High-Reliability RISC-V Fault-Tolerant Processor Core