Intel
BACKGROUND Sector- Technology/Hardware Industry- Semiconductors Stock Type- Slow Growth Intel is the worlds largest chip maker and is a leading manufacturer of computer, networking and communications products. Intel produces personal computer semiconductor components and related products. ... Intel also makes chipsets, memory chips, embedded processors, graphics-accelerator chips, network and communication products, and digital-imaging products. ... Intel manufacturers the majority of its semiconductors in its own chip plants spread across the world. In addition, to concentrating on the hardware side of the technology industry, Intel also competes in the services field of the industry. Some of Intel’s competitors include Advanced Micro Devices, Altera, Analog Devices, Linear Technology, Marvell Technology, Maxim Integrated Products, Micron Technology, Taiwan Semiconductor, Texas Instruments, and Xilinx. Intel currently is using their Intel Centrino Mobile Technology-based PCs to promote the idea of unwiring your business. The Intel Centrino Mobile Technology is the first architected CPU, chipset, and wireless LAN designed by Intel. ... Intel Centrino mobile technology works across these four components to help IT departments drive notebook total cost of ownership down. In late 2003, Intel Corporation hopes to lure customers to upgrade by boosting microprocessor speeds to 4. ... The bottom line is the upgrades of PCs and servers will drive sales of microprocessors, which will keep Intel as a leader in the IT industry. ... This is great news for Intel since the companies main source of income is from the processor and chipset side of the IT industry. ... In fact, small to medium business is a huge market for Intel because these firms are going to need to upgrade their computers and update employee skills in specialized areas such as Web Services. ... Since Intel has a Web Services Practice they will have a great opportunity to compete in this arena. ... Intel will also be able to compete in this space by implementing services with their Consolidation Practice. ... Again, Intel will be able to accomplish this task for customers by engaging their Web Services Practice. ... Since Intel is mainly a hardware company they may not be able to compete in all areas of these technology driving forces. Intel can also compete in the services space of the industry because the corporation offers multiple different types of services to help develop solutions for customers. To stay competitive Intel should create an out-of-box solution needed for Enterprise solutions to incorporate Web Services. Currently Intel does have a Web Service Practice, but the company currently implements solutions instead of offering an out-of-box solution. ... Although open source pertains to software and not hardware, Intel must keep up with this trend. Currently, Intel has an Open Source from Intel section on their website. This open source section gives information about the different types of open source that Intel supports. For instance, Intel gives customers the ability to download open source code for multiple different platforms. Some of the main catagories that Intel addresses for open source are libraries, tools and test suites, operating systems, compliers, drivers, and platforms. ... Intel researchers are creating an innovative packaging technique that involves thinning silicon so that multiple chips can be stacked in a package, and stacking multiple packages to form a single, integrated solution. ... PERFORMANCE TRENDS FIRST-QUARTER RESULTS Intel Corporation’s first-quarter revenue was $6. ... Intel made two major announcements in the first quarter, the company announced wireless-Internet-on-a-chip technology, code-named Manitoba, for cell phones and they announced the Intel Centrino mobile technology that brings integrated wireless capability and longer battery life to a new generation of mobile PCs. Intel stated the following reasons below justify the figures above. The average selling price of Intel Architecture microprocessor units was slightly higher primarily due to lower XBox processor shipments as a percentage of overall shipments. ... The components included the Intel Architecture microprocessor units, motherboard units, flash memory units, and Ethernet connectivity product units. ... Intel expected revenue in the second quarter to be between $6. ... In addition, Intel expected gross margin percentage in the second quarter to be approximately 50 percent, as compared to 52 percent in the first quarter. ... Intel expected research and development and marketing expenses in the second quarter to be between $2. ... Intel’s gains or losses from equity investments and interest and other in the second quarter are expected to be a net loss of $20 million due loss of equity investments of approximately $60 million, primarily as a result of impairment charges on private equity investments. ... Intel Corporation’s second-quarter revenue was $6.