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.
![]() |
E-mail This Article | ![]() |
![]() |
Printer-Friendly Page |
Related News
- Intel to Exit Mobile SoC Business
- Gartner Says Worldwide Traditional PC, Tablet, Ultramobile and Mobile Phone Shipments On Pace to Grow 7.6 Percent in 2014
- The Linley Group Says Mobile Semiconductor Market Topped $30 Billion in 2012
- Gartner Says Worldwide Sales of Mobile Phones Declined 3 Percent in Third Quarter of 2012; Smartphone Sales Increased 47 Percent
- The Linley Group Says Mobile Processor Market Grew 60 Percent in 2011
Breaking News
- Equal1 advances scalable quantum computing with CMOS-compatible silicon spin qubit technology
- New Breakthroughs in China's RISC-V Chip Industry
- JEDEC® and Industry Leaders Collaborate to Release JESD270-4 HBM4 Standard: Advancing Bandwidth, Efficiency, and Capacity for AI and HPC
- BrainChip Gives the Edge to Search and Rescue Operations
- ASML targeted in latest round of US tariffs
Most Popular
- Cadence to Acquire Arm Artisan Foundation IP Business
- Siemens to accelerate customer time to market with advanced silicon IP through new Alphawave Semi partnership
- Intel Announces Strategic Investment by Silver Lake in Altera
- Andes Technology Celebrates 20 Years with New Logo and Headquarters Expansion
- AMD Achieves First TSMC N2 Product Silicon Milestone