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.
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.
"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.
@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.
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.
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.
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.
I totally agree with you Dave. Definitely Intel will emerge as the leader in mobile space as well soon. Moreover mobile space is chaning so drastically that no body can dominate it for too long . Intel has money power and resource power to easily dominate mobile arena.
I agree that Intel has to make a strong impact in the mobile and tablets market if it wants to continue being the hardware leader in computer chips. I think Intel will be successful if it enters in those markets and will be able to en-cash on the brand name.
It is just a matter of time with Intel for the company to emerge in the mobile tech and tablet. Intel had been a reliable hardware leader in computer chips. Because of the company's credibility, it will be a great attempt if the company can make an impact in the mobile and tablet technology. Someone like me will jump at it.
Tirlapur, at Home/Personal Computer time, Wintel has striked the market and only in the long terms tech alternatives came trying to balance the situation in a trade off PC-Intel and PC-compatible. Do you think similar scenario will happen also in mobile market?
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.
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?
Intel normally known for the processors used in personal computers as well as in servers, but had not reported a major break through for chips utilized in mobile phones and other related portable devices.The firm, which designs and manufactures computing and communications components, was confronted a tough competition from ARM Holdings. ARM based processors were widely used in Smartphones and other related small devices because of their low power consumption.
What happened in the market is in line with analysis you have summarized, then maybe it is necessary a more prudent approach before to state Intel is going to take a leadership also on mobile. Perhaps it could happen, but not shortly, isn'it?
Does intel have flare for chips in mobile technology? I think the question is not whether Intel can emerge and do better in mobile tech but is there a need to be involved. Intel may remain as an expert in its current product lines while analyzing the market for mobile technology. One thing is sure: Intel has potential to become a cutting edge if it chose to.
Yes, Kunmi, it is sure; maybe as consequence of today announcement from Nokia and Accenture, new events could happen and influence mobile market and then also next piece of Intel's mid-term strategy.
Amid the speculations of ARM architecture eating the slice of Intel processors in the desktop market and Intel's no admit into the mobile phones still Intel is beating the expectations all the time. Their investments in Atrom and the advanced architectures like sandy bridge is giving them an edge in the industrial computing market.
It will very interesting what really means for Intel forecast close to reality, how many percentage points off will be close to reality in a multi-billion company.
I flu from SFO to ShangHai next to one on the VP of mother-board development & research, after some conversation he explain to me even though Intel is very strong, they have to "move their chesse" of a different core bussines and they have to do it soon.
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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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