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Intel creates unit for smartphones, tablets
Chip maker aiming at growing market where it’s not dominant

By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) — Intel Corp. on Wednesday said it has set up a new unit devoted to smartphones and tablets in a strong sign that the chip giant plans to focus more on the fast-growing devices.

The company’s mobile-communications group combines four units that had been focused on different areas, from smartphones, wireless mobility, and baseband communications to netbooks and tablets.

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The new group will be led by Hermann Eul and Mike Bell, a respected technology executive who had previously worked at Apple Inc. (NASDAQ:AAPL) and Palm Inc.

“We’re aiming to speed up and improve the development of Intel-based mobile devices,” said Intel (NASDAQ:INTC) spokesman Robert Manetta.

The move comes as Intel, the world’s biggest semiconductor company, struggles with a slowing PC market and tries to expand its presence in the mobile market where chips based on the designs of ARM Holdings PLC (NASDAQ:ARMH) are dominant.

On Monday, Intel cut its fourth-quarter revenue forecast, citing the hard-disk drive shortage that has caused major disruptions in the PC industry. Read more about Intel lowering its outlook on impact of Thai flooding.