Intel certainly seem to be going through a transitional period recently. To add to this transition it seems uncertainty is rife. Back in June of this year, the CEO of Intel Brian Krzanich claimed that he expected Intel to ship somewhere close to 40 million tablet chips in this year. This was a rather bold claim as Krzanich has only a month earlier commented on how Intel had missed the early tablet market by not really seeing its potential. That said, as 2014 comes to a close, Intel do indeed seem to be on target to reach their goal of 40 million shipped tablet processors.. However, that number is only half the truth and does not really represent the reality of their tablet sales. This is largely because a significant number of those so-called ‘shipped processors’ were provided to OEMs at a significantly reduced price. This move by Intel was designed to offer an incentive to OEMs to use their heavily subsidized processors. So although they are hitting their target for this year, the numbers shipped will not equate to much cash in the pocket.
The lack of profit has been further realized when a couple of days ago it was reported that Intel were planning to merge their mobile chip division with their PC division. This again was an attempt to damage-limit how poor the tablet sales have been (in terms of profits). In fact, in the third quarter the mobile division had reported losses in excess of $1 billion. In contrast, the PC division was reporting profits of over $4 billion. Quite a contrast when you consider the number-of-units target is actually being reached. Whether or not, the merge between the two divisions will help boost tablet processor sales remains to be seen. However, it does now seem that we are already starting to get some indication of what 2015 will be like for the Intel mobile processor sales.
When Krzanich made the claim of forty million units this year, he also suggested that in 2015 they should manage to shift somewhere around the 70 million mark. In spite of the current target just about being reached it seems Krzanich is now well aware that the 70 million number will be out of reach of Intel in 2015. During a brief interview with Recode, Krzanich admitted that it is highly unlikely Intel will be able to manage to shift 70 million chips next year, suggesting the standalone number certainly won’t be that high. Krzanich did go on to suggest that it still is possible they will have chips in 70 million tablets next year. However, if that target is reached it would been greatly aided by their partnership with Chinese chip company Rockchip. What do you think the future holds of the Intel and their mobile chip division? Will, 2015 be any better than 2014? Let us know.