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Intel on Tuesday confirmed that it is merging its separate PC and mobile chip business groups to form a single unit for dealing with customers which is faster to bring products to market.

The new Client Computing Group headed by Intel senior vice president Kirk Skaugen will combine most elements from the current PC Client Group (PCCG) and Mobile and Communications Group (MCG), Intel spokesman Chuck Mulloy told PCMag.

Intel's modem and RF chip business, currently part of the mobile chip unit, will be moved to the Platform Engineering Group (PEG) under the management of Aicha Evans, who is PEG general manager.

The reorganization will take effect in early 2015, according to The Wall Street Journal, which first reported the news earlier this week.

"We're doing this to create better efficiency in dealing with customers. The line between tablets and laptops and phones and PCs is getting really soft," Mulloy said. "So for example, Core M, which we introduced earlier in the year, is being used in both PCs and in tablets."

Mulloy said Intel had gained considerable ground this year in selling processors for tablets, as well as for hybrids like 2-in-1s. The company has gone from having "zero market share" against mainly ARM-based chips to shipping upwards of "40 million units," the number of tablet-targeted processors he said Intel expects to move by the end of 2014.

Patrick Moorhead, principal analyst for Moor Insights & Strategy, guessed that Intel's Atom and Core product lines are becoming less distinct with the emergence of next-gen processors like the Core M family with power draws low enough to enable fanless designs.

"One potential driver here is the potential growing overlap between the Core- and Atom-based architectures, particularly in the tablet space," Moorhead said. "Core is already demonstrating its capability to get to 4.5 watts, only slightly above the sweet spots for performance tablets. So Atom and Core appear to be blending, potentially driving the decision to merge the units."

But Intel still "isn't moving fast enough in phones," Mulloy said. Gaining share in smartphones, a product segment Intel has been notably weak in for years, was a priority set out by Intel CEO Brian Krzanich when he took the helm at the company last year.

The creation of the merged Client Computing Group is also intended to address Intel's lagging fortunes in the handset market, pushing the company to "move faster, and be quicker with engineering and getting products to market," Mulloy said.

Intel hasn't sorted out how it will report financials for the new business unit, but the Intel spokesman said that would finalized before the company's next earnings report to investors. Last quarter, MCG took a loss to the tune of about $100 million.

Intel is holding an event for investors this Thursday.

"It's unclear now as to exactly why Intel is merging the two business units, but I'm expecting a lot of details at Intel's Investor Day on Thursday," Moorhead said. "There are some benefits that I can see. Intel hasn't yet decided on exactly how they will financially report, but they could more easily bury the future mobile losses if they so choose. This could help take some of the pressure off of them until they see a lot more growth and profitability in mobility."