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Products: Intel Corporation (INTC)

Client Computing Group(Client Computing Group)
Data Center Group(Data Center Group)
Internet of Things Group(Internet of Things Group)
All Others(All Others)

Client Computing Group

What is being offered?

This includes platforms designed for notebooks (including Ultrabook devices), 2 in 1 systems, desktops (including all-in-ones and high-end enthusiast PCs), tablets, phones, wireless and wired connectivity products, and mobile communication components. The platform may be enhanced by additional hardware, software, and services.

Intel manufactures and markets microprocessors and chipsets used in desktop and notebook PCs. Microprocessors are a PC's central processing unit (CPU) or the brain behind a computer. A microprocessor is the single most important component that drives computer power and performance. Chipsets perform essential logic functions such as balancing the performance of the system and removing bottlenecks. It operates as the PC's 'nervous system', sending data between the microprocessor and input, display, and storage devices such as the keyboard, mouse, monitor, hard drive and CD or DVD drive.

Names of Key Product Series

  1. Intel Core i7
  2. Intel Core 2 Quad, Core 2 Duo
  3. Intel Celeron
  4. Intel Pentium
  5. Atom

Who is buying?

Primary buyers include original equipment manufacturers (OEMs) and original design manufacturers (ODMs). This includes PC manufacturers such as Hewlett-Packard, Dell, Toshiba, and Sony which use Intel's microprocessors in their PCs. Individuals building custom PCs or replacing their current desktop microprocessors are also buyers. Intel's customers also include numerous smartphone, tablet and smart TV manufacturers.

Major Competitors:

Advanced Micro Devices (AMD), Nvidia (NVDA), Qualcomm (QCOM).

Other / smaller competitors:

VIA Technologies (VIA) of Taiwan

What buyers care about

1. Speed & performance

2. Reliability

3. Power efficiency / battery consumption

4. Price (relative to performance)

5. Power consumption and heat (energy efficiency)

6. Compatibility with other hardware

7. Volume discounts

Intel's top selling points

  1. 'Intel inside' brand is valued by customers
  2. Long track record of providing high quality microprocessors
  3. Ability to offer attractive pricing for volume buyers, such as Dell, Toshiba and Sony

 

Client Computing Group Revenue

This includes revenue from processors and platform products designed for use in notebooks, desktops, tablets, phones and other mobile communication products.

Client Computing Group Revenue has suffered in 2015 due to the weakness in the overall PC market. However, it has increased in the last couple of years due to the improvement in average selling prices. The figure stood at $34 billion in 2017.

Chart: Client Computing Group Revenue

Data Center Group

What is being offered?

The Server (Data Center) business includes platforms (microprocessors and chipsets) designed for the enterprise, cloud, communications infrastructure, and technical computing segments. The platform may be enhanced by additional hardware, software, and services.

Intel manufactures and markets microprocessors and chipsets used in servers. Servers, which usually have multiple microprocessors or cores working together, manage large amounts of data, direct data traffic, perform complex transactions, and control central functions in local and wide area networks and on the Internet. Microprocessors are a PC's central processing unit (CPU) or the brain behind the computer. A microprocessor is the single most important component that drives computer power and performance.

A chipset operates as a computer's 'nervous system', sending data between the microprocessor and input, display, and storage devices such as the keyboard, mouse, monitor, hard drive and CD or DVD drive. Chipsets perform essential logic functions such as balancing the performance of the system and removing bottlenecks. Chipsets also extend the graphics, audio, video and other capabilities of many systems based on Intel's microprocessors. Finally, chipsets control the access between the CPU and main memory.

Names of Key Product series

  1. Intel Xeon
  2. Intel Itanium (nearing its lifecycle end)

Who is buying?

Server manufacturers such as IBM, Dell, HP, Sun Microsystems (now part of Oracle) and Fujitsu

Major Competitors:

Advanced Micro Devices (AMD)

What buyers care about

1. Reliability

2. Handling high transaction volumes

3. Power consumption and efficiency

4. Data processing

5. Price

6. Compatibility

Intel's top selling points

1. Long track record of providing high-quality microprocessors

2. Dependability, compatibility, scalability, and advanced architecture to meet company's multi-processing environment

3. Supports an even higher level of reliability and computing performance for data processing, high transaction volume handling, and other computationally-intensive applications for enterprise-class servers as well as supercomputing solutions

Data Center Group Revenue

This includes revenue from sales of processors and chipsets designed for the enterprise, cloud, communications infrastructure, and technical computing segments.

Data Center Group Revenue has increased over the last few years consistently, driven by the expansion of cloud infrastructure and communications provider companies.

Chart: Data Center Group Revenue

Internet of Things Group

What is being offered?

This segment includes Intel platforms and software-optimized for the Internet-of-Things (IoT) market segment. The IoT, which includes all other computing devices apart from PCs, tablets and smartphones is considered to be the next big driver for the semiconductor industry.

The IoT segment for Intel includes platforms designed for embedded applications for medical, automotive, industrial, retail, and other market segments; as well as software-optimized products for the embedded and mobile market segments.

Names of Key Product Series

  1. Embedded Intel Core 7th generation
  2. Intel Xeon for embedded computing
  3. Intel Quark and Intel Atom processors

Who is buying?

- MID manufacturers such as Asus, Samsung and Sony as well as embedded device manufacturers. Primary buyers also include original equipment manufacturers (OEMs) and original design manufacturers (ODMs).

- Car manufacturers such as HawTai to develop in-vehicle infotainment systems.

Major Competitors:

AMD, Qualcomm, Broadcom, Texas Instruments and STMicroelectronics, etc.

What buyers care about

1. Power consumption and energy efficiency

2. Price (relative to performance)

3. Speed and performance

4. Reliability

5. Compatibility with other hardware

6. Volume discounts

Intel's top selling points

High valued brand name built by Intel through its PC and server microprocessors.

Internet of Things Group Revenue

This refers to the revenue that Intel earns from the sale of platforms designed for embedded applications for medical, automotive, industrial, retail, and other market segments; as well as software-optimized products for the embedded and mobile market segments. It also includes small low-power chips that are used in wearable devices and a range of consumer and industrial products.

Intel's Internet of Things Group Revenue increased from $1.6 billion in 2012 to $3.17 billion in 2017.

Chart: Internet of Things Group Revenue

All Others

What is being offered?

The All Other division includes software products for endpoint security, network and content security, risk and compliance, and software products and services that promote Intel architecture as the platform of choice for software development. The division also includes results of operations from Intel's Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other.

Who is buying?

Primary buyers include original equipment manufacturers (OEMs) and original design manufacturers (ODMs).

Major Competitors:

AMD, Qualcomm, Nvidia, Micron Technology

What buyers care about

1. Speed & performance

2. Reliability

3. Price

4. Power consumption and heat dissipation (energy efficiency)

5. Compatibility with other hardware

6. Volume discounts

Intel's top selling points

- The consumers highly value the 'Intel Inside' brand .

- Long track record of providing high quality microprocessors.

- Relatively small power consumption and heat dissipation of their product lines, resulting in extended battery life.