Intel set to merge struggling mobile business with PC chips division

Intel is gearing up to merge its mobile phone and tablet divisions with its PC chip-making division, Bloomberg reported today. The move comes in the wake of Intel's struggle to maintain a profit in the mobile sector while operating its tablet and mobile phone businesses at a loss.

The news was reported to Bloomberg via Intel's spokesman, Chuck Malloy. According to Malloy:

The lines are blurring between PCs, tablets, phablets and phones. The idea is to accelerate the implementation and create some efficiency so that we can move even faster.

Though, as Bloomberg reports, Intel is on its way to meeting its goal of shipping 40 million tablet processors this year, the chip-maker hasn't yet been able to maintain profitability in the mobile market because of its aggressive subsidies to bring manufacturers on board.

It will be interesting to see how this merger works out for the company as the current head of Intel's PC-chip division, Kirk Skaugen, takes over for the new unit. What effects do you guys expect this merger will have?

Source: Bloomberg

Dan Thorp-Lancaster