One effect of Intel’s plan to combine its PC and mobile division this year: it won’t be as easy for outsiders to see how poorly its mobile business is doing.
Today, Intel posted earnings for the fourth quarter, and it will probably be the last time it breaks out its mobile results separately.
Overall, the company posted annual profits of $US11.7 billion on revenues of $US55.9 billion — up 22% and 6% respectively. But the company gave disappointing guidance for Q1, sending the stock down about 3% after hours.
But the report also reemphasized how poorly Intel’s mobile initiatives did last year.
In 2014, the mobile and communications group had only $US202 million in sales, down nearly 85% from last year’s $US1.4 billion in revenue.
That division’s operating loss for the full year 2014 was a staggering $US4.2 billion, roughly $US1.1 billion worse than the previous year. In fact, mobile and communications group was the only business segment that wasn’t profitable last year, and by far the smallest division in terms of sales.
Intel’s PC group, on the contrary, had $US34.7 billion in sales for the whole year, nearly $US1.4 billion more than last year. Its operating income was $US14.6 billion, accounting for more than 95% of Intel’s total.
Intel had warned during its last analyst day that mobile earnings would be pretty bad, and the company admits they were late to the mobile game, so today’s results were not a surprise.
But every cloud has a silver lining, and Intel’s PC business keeps chugging along as laptops get smaller and thinner. At the 2015 International Consumer Electronics Show this month, Intel finally released its fifth-generation core processor, codenamed “Broadwell-U.” The new chip has stronger battery life and better performance, at a fraction of the size of older chips, which makes it ideal for super-slim laptops.