Intel reorganising mobile business

In a reorganisation of its mobile business, Intel said yesterday it has formed a new group, called the Mobile and Communications Group (MCG) that will focus on phones, tablets, and other mobile devices.

“This is a strategic move designed to provide clear differentiation for Intel-based mobile devices and to speed and improve development of mobile devices and components,” said Intel spokesman Robert Manetta.

The new group is formed by combining four existing Intel groups in the areas of baseband communications, WLAN components, netbooks, tablets, and phones. The groups folded into MCG are Intel Mobile Communications, Mobile Wireless Group, Netbook and Tablet Group, and the Ultra Mobility Group, the company said.

The move comes as the company faces stiff competition in the mobile devices market. Although a dominant player in PCs, it is struggling in the mobile devices market where chips based on designs from ARM dominate.

Intel’s mobile business has seen significant changes previously. It announced in March the resignation of Anand Chandrasekher, senior VP and GM of the Ultra Mobility Group.

Chandrasekher, who was said to have left “to pursue other interests”, led a group responsible for the development of low-power Atom chips for products such as smartphones, tablets and other handheld devices.

The new group announced this week is chartered with creating a “compelling user experience by providing optimal hardware, software, and connectivity ingredients as well as complete solutions”, such as form factor reference designs, Intel said.

Two current Intel executives, Hermann Eul and Mike Bell, will run the new group. Bell was appointed to co-manage the Ultra Mobility Group after Chandrasekher’s exit. Eul heads Intel Mobile Communications, and came to Intel after its acquisition of Infineon Technologies’ wireless division.