It seems that whole “smartphone and tablets push” from Intel (News - Alert) hasn’t been so good thus far. Intel chairman Andy Bryant said during the company’s annual investor meeting last week that its losses from the mobile and communications group would be in the billions this year.
"I'm not going to tell you I'm proud of losing the kind of money we're losing," Bryant told investors and analysts at the meeting, which was held at Intel headquarters in Santa Clara, Calif. "But I'm also going to tell you I'm not embarrassed by it like I was a year ago about where we were."
Where Intel is headed is into the data center and the heart of the Internet-of-Things (IoT) revolution, two segments where the company thinks it can stabilize its bottom line.
Intel already is in the data center, of course, but it believes it can increase its compound annual growth rate in the segment.
"The datacenter is Intel's next big business," Intel CEO Brian Krzanich noted during the meeting. "It's a $14 billion business and we will grow it at a 15 percent rate."
There also is plenty of growth in the IoT sector.
IoT is Intel’s other big growth driver for the coming year, according to Krzanich, second only to the data center. This is reinforced by the company’s decision earlier this year to spin off IoT into its own segment within the company.
Krzanich said at the investor meeting that Intel’s deep experience with the Internet of things will set it up for success.
"We have been in this business for many years, so it's one we are very familiar with," Krzanich noted.
Still, the mobile investment hurts.
Intel expects to issue a shareholder dividend of 96 cents per share, according to the company's full year 2015 business outlook. But its revenue prospects should be in the single digits, according to executives.
Capital spending next year will be roughly $10.5 billion compared with about $11 billion in 2014, according to Intel.
Edited by Rory J. Thompson