There have been speculations that the boom in mobile/tablet devices would kill off Intel soon. However, it is an interesting note that the demand for data center is also exploding.
Parser, personally I agree and share your position. It seems some small lights are brighting, even recovery path will take a lot more and honestly a very determined plan for leaving out current crisis is not done. Is it due difficulties in foreseeing the clear street or due to lack of professionals at C-level which prefer "cut attitutide" to gain some bit % on the EBITDA in short term?
Emerging markets are typically quickly saturated. For a sustained success Europe and North America have to recover. It is good to see that something is leading the recovery. More and more companies, including as expected Apple, are reporting profits and increased investments. Hopefully this will show up in hiring soon.
Hi DennisQ, I have stated on other post that people should not bet against Intel.Intel is still the leader in chip technology for PCs and Servers, which by the results, there is still a strong “worldwide” demand.Intel is not going to sit by and be passed up in the smartphone and tablet arena.There is too much at stake and Intel is getting aggressive in the mobile market as well. I expect that they will emerge as the leader in this space as well.It may take 3-5 years though.
Unlike the developed countries, in the emerging markets computers are not sold under a brand name where all the accessories are of the same brand. Consumers can add the hardware components of the CPU according to their choice. This is where Intel is dominating where majority of the boards, processors and other chips are Intel's.
@TaimoorZ, good post, I think many North Americans and the North American media gets too focused on the US market and forgets that there are a whole lot of people who don't live in North America or Europe.
Yes, sales may be weak in North America and Europe, but Intel is very well positioned for the emerging markets, as you note.
I know tablets are all the rage right now in the states now, but tablets don't make much sense for users in developing countries, which is just one of the many reasons why Intel is well-positioned for growth in the areas outside of their traditional markets.
"Intel now generates more than 50 percent of its sales from emerging markets"
I belong to a developing country which comes under the emerging markets. In the recent months, Intel has done a very smart thing here which I think would also apply to other emerging markets. This may be a big reason for it's success in the emerging markets.
In developing countries, consumers are very inclined towards buying low-cost hardware and computer equipments. The trend over the years had been to buy used branded computer systems that have been discarded by developed countries. To counter this, Intel has launched and promoted cheaper models of processors and chipsets in developing countries. Some of these models are even cheaper than used branded equipment. From what I have witnessed, this has boosted Intel's sales considerably in emerging markets.
Keeping quickly an eye on the list, I was wondering real status about cloud market. Is it booming or in reality "slideware" about, is booming? What is really ready in terms of readiness of services? Of course mobile handsets are forcing apps from datacenters and high powerCPU; this is good for Intel, but in case this should be the picture, we are still far from cloud principles. Maybe it takes more time to reach aimed target for both users and market players.
I have to agree that your number 3 takeaway is a huge factor. While there are many companies out there producing off brands of electronics i.e.; televisions, blu-ray players and computers, most of which are just as good as the big name manufacturers, most computer buyers want a known name. The consumers have no problem looking at brand X if they see there's an Intel processor inside. With the ever expanding sales in emerging markets, Intel's name being associated with smaller companies should generate a large amount of sales and growth.
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Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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