Intel Mini Case Intel is one of the largest semiconductor manufacturers in the w
ID: 328492 • Letter: I
Question
Intel Mini Case
Intel is one of the largest semiconductor manufacturers in the world. Intel controls a significant portion of the market share of the industry. Intel revenues and net income has remained relatively flat from 2012 to 2014 (Table 1). Earnings per share increased from $.92 in 2012 to $2.01 in 2014 (Table 1). Table 1
Intel Financial Results
2012
2013
2014
Revenues ($ billions)
53.3
52.7
55.8
Net income ($ billions)
11.0
9.6
11.7
Earnings per Share
.92
.77
2.01
Intel’s primary growth is driven by the increase in P.C. sales. Over 1 million P.C.’s are sold worldwide each day. Many households have more than one P.C. In addition, P.C. growth has grown at an increasing rate in emerging markets.
The competitive landscape is changing. New categories of products such as smart phones, smart TVs, tablets, in-vehicle systems, and more are connecting to the Internet and becoming more intelligent. Intel is aggressively pursuing opportunities to expand into these new product categories.
In addition, the Intel brand is consistently ranked as one of the most recognizable and valuable brands in the world. In 2013, the Intel brand ranked 9th in the world and had a brand value of $37.2 billion. Intel believes that its brand represents its commitment to moving technology forward. As the world leader in computing innovation, Intel designs and builds the technologies that serve as the foundation for the world’s computing devices. Intel believes that it is transforming from a company with a primary focus on the design and manufacture of semiconductor chips for P.C.’s and servers to a computing company that delivers complete solutions in the form of hardware and software platforms and supporting services.
Intel’s manufacturing process technology enables it to build processors with increased energy-efficient performance at low cost. Intel has been shipping products built using 32 nanometer (nm) process technology since 2009.
PC shipments grew by double-digit percentages in 2014, but computing is no longer confined to computers. Thousands of other devices powered by Intel technology – cars, cell phones, homes, hospitals, offices, and factories – are other examples. These additional uses may increase Intel’s revenue significantly.
Intel believes it has the financial position to grow into these additional businesses.
Discussion Question:
1. How well is Intel positioned against its primary competitors (Samsung Electronics, Qualcomm, and Toshiba) in the semiconductor industry?
Intel is one of the largest semiconductor manufacturers in the world. Intel controls a significant portion of the market share of the industry. Intel revenues and net income has remained relatively flat from 2012 to 2014 (Table 1). Earnings per share increased from $.92 in 2012 to $2.01 in 2014 (Table 1). Table 1
Intel Financial Results
2012
2013
2014
Revenues ($ billions)
53.3
52.7
55.8
Net income ($ billions)
11.0
9.6
11.7
Earnings per Share
.92
.77
2.01
Explanation / Answer
No doubt , Intel is significantly strong as they could identify the significant industry changes in the various categories of the products like smart phones, tablets and the televisions with more consumer increasing their internet resources as well as computer intelligence .this allowed for expansion into those resources. Intel has changed its primary focus from design and manufacturing of semicunductor chips for simply P.C and servers and has expended its operations in the form of hardware and software supporting platform. Intel can also managed to maintain a compitative advantages in the industry by focusing on reaching consumer on the auto, medical , mobile phone industry as well as factory.
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