Intel’s latest earnings report shows the company is struggling to diversify itself as the demand for PC processors shrinks. Its new CEO, Brian Kraznich, says his company will now focus on building mobile chips as it plays catch-up in the mobile sector.

intel logo hq As Intels revenue slump continues, its CEO points to convertible tablets

As the demand for PC processors declines, Intel has posted another quarter of revenue loss but the company’s CEO remains optimistic that Intel’s mobile roadmap will reverse the company’s fortunes.

This quarter Intel reported profits of $2 billion, down 29 percent from a year ago, on $12.8 billion in revenues  missing revenue expectations that averaged at $12.9 billion. Intel’s PC Client division posted  revenues at $8.1 billion, a 7.5 percent drop from the second quarter last year.

Intel’s new CEO, Brian Krzanich, told analysts on an earnings conference call Wednesday afternoon that Intel was slow to respond to the market shift and now has to make up for lost time with Haswell and Bay Trail.

“Intel was slow to respond to the ultramobile PC trends,” Kraznich said during the call. “The traditional PC market segment is down from our expectations at the beginning of the year, while ultramobile devices like tablets are up.”

“We’ve not always lived up to the standard we’ve set for ourselves.”

Taking on ARM

Krzanich told those on the call that Intel’s plan to take on ARM would be anchored in convertible tablets powered by Bay Trail chips and smartphones powered by Merrifield.

Krzanich said that there are over 50 designs planned for convertibles. Bay Trail would be in tablets priced at the $199 level or less, with some coming in at $150.

Intel’s Merrifield processor, which is intended to power smartphones, will ship by the end of the year according to Krzanich. This is earlier than expected as at Computex, Intel’s Tom Kilroy said that the chip wouldn’t be available until Mobile World Congress in early 2014.

During the call Intel confirmed that the Samsung Galaxy Tab 3 tablet will ship with an Atom processor, as previously reported. While the Galaxy Tab 3 won’t be a titan in the tablet world like the Nexus 7, it still is a huge win for the company and a symbolic first step in breaking ARM’s dominance of the market.

Source: Intel earnings call transcript