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Intel shares rise after chip giant gives upbeat outlook for 2015

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Intel has been having a tough few years trying to claw its way into smartphones and tablets and losing billions of dollars along the way. But it's still fighting.

As today's graphic shows, tablets and smartphones are now an important part of life, from shopping to offices.

Intel, the leading chipmaker for personal computers, ignored that market for too long. Recently it has been spending heavily to get back into the fast-growing mobile market so it can protect itself against slumping PC sales.

That effort hasn't been all that successful so far, with rivals such as Qualcomm and MediaTek controlling large pieces of the mobile market already. Having another viable player could help drive down prices in mobile through added competition, as well as provide consumers with more options.

Last week Intel chairman Andy Bryant kicked off an investor event by reinforcing his company's commitment to mobile regardless of all the losses. "I'm not going to tell you I'm proud of losing the kind of money we're losing," Mr Bryant told a crowd of investors and analysts at the company's California headquarters.

"But I'm also going to tell you I'm not embarrassed by it like I was a year ago about where we were."

He added that the company won't continue to accept losing so much money and it will make improvements. "This is the price you pay for sitting on the sidelines for a number of years, and then fighting your way back into a market," Mr Bryant said.

"We will get back in, we are getting back in."

Intel still has a lot of work to do in mobile. It has said it expects losses in mobile to continue through next year.

Saying it wants to integrate the mobile business more within the company, Intel said on Monday that it will combine its mobile and PC chip groups.

For now, Intel has managed to get its mobile processors or modems into just a handful of products, including the Asus PadFone X Mini smartphone-tablet hybrid in the US and Samsung Galaxy Alpha smartphone in Europe and Asia. Many of its mobile sales are going to entry-level tablets, though it's had to offer subsidies to manufacturers as part of the deals.

Despite Intel's woes in mobile, its main businesses of selling chips for PCs and data centres continue to be strong.

Intel's shares closed up nearly 5pc on Thursday after the company predicted revenue growth for 2015 in the "mid-single digits", ahead of analysts' expectations. The shares rose again yesterday.

Intel, helped by a stabilising personal computer market, gave a sales forecast for 2015 that was above Wall Street's expectations and also raised its dividend, sending its shares higher yesterday.

In a press release on Thursday evening, Intel said it expects revenue to grow by a mid-single digit percentage next year. Analysts on average have been forecasting 3.4pc revenue growth for 2015.

Irish Independent