| Name | Intel Corporation |
| Industry | Tech Hardware & Semiconductors |
| Founded | July 1968 |
| Headquarters | Santa Clara, California, United States |
| CEO | Patrick P. Gelsinger |
| Revenues | $77.87 Billion |
| Profit | $43.61 Billion |
| Competitors | IBM, AMD, NVIDIA, Samsung Electronics, Oracle, ASUS, Qualcomm |
Company Overview:
Integrated Electronics Corporation (Intel) is a multinational technology company founded by Robert Noyce and Gordon Moore in 1968. It is the world’s largest semiconductor company whose first products were memory chips and metal oxide semiconductors. They make motherboard chipsets, network cards, flash memory, graphics chips, and other devices related to communications. In the 1990s, Intel’s new microprocessor designs paved way for the growth of the PC industry. Intel is known for providing processors for a variety of computer and technology companies (New World Encyclopedia). As technology evolves, so does the demand for Intel’s products and services. The company’s revenue trajectory has been moving upward in the last 10 years. In 2020, despite the global health crisis, Intel’s revenue increased 8.2% from the previous year amounting to $77.87 billion. However, Intel’s annual gross profit tends to fluctuate. In 2020, It increased by 3.49% amounting to $43.61 billion (Macrotrends, 2021).
Intel Strengths 2021:
- Strong competitive presence.
Intel is a brand that a lot of companies rely on. Advanced Micro Devices Inc. (AMD) is Intel’s biggest competitor when it comes to buying Windows-based laptops or PCs, with Intel having the most market share (Investopedia, 2021). Intel is focused on innovating new technology to increase its competitive advantage. - Broad product line.
Much of Intel’s success is due to its products. They continuously develop their products to have different kinds of each, mostly an upgrade version of the previous one. From board and systems to connectivity, chipsets, and memory, Intel provides end-to-end solutions that address the needs of an ever-evolving data-centric community (Intel). - Brand value.
Among 100 global companies, Intel ranked 12th on Forbes’ list of “World’s Most Valuable Brands” of 2020. This list is based on the earnings and relevance of the brands in the market (Forbes, 2020). Intel has always been included in top rankings. In 2021, it ranked in the top 50 of Brand Finance Global 500 and Forbes’ U.S. 500 (Ranking the Brands, 2021). - Research and Development.
Intel created and invested in Intel Labs to address the data challenges of the future. The R&D department spent $13.56 billion in 2020, which has been the highest for the past years (Statista, 2021).
Intel Weaknesses 2021:
- Limited market scope.
Intel has been manufacturing computers and servers and tried to expand to the smartphone market. However, Intel’s focus was more on PC and server chips and was not willing to divert resources for smartphone development. As a result, they failed to break into chips for smartphones, which makes them far behind competitors (Bloomberg, 2021). - Global chip shortage.
Intel announced the delay in the production of their 7-nanometer scale processors. This resulted in some investors selling off their stocks. Intel plans to develop semiconductor manufacturing facilities in Europe to meet the demand (Investors, 2021). - Inconsistent profit.
Intel’s profit has been inconsistent in the past years. Recently, AMD gained some of Intel’s market share because of the latter’s issue with a chipset supply shortage. Intel’s gross profit for the twelve months ending June 30, 2021, was $43.15 billion, which was a 5.57% decline year-over-year (Statista, 2021).
Intel Opportunities 2021:
- Dive into smartphones and tablets.
Many people appreciate the practicality and convenience of tech gadgets. As more people would want to play and work on the go, Intel should set part of its resources to create chips for smartphones and tablets. History should not repeat itself like when Intel missed the opportunity to grow in the smartphone industry in 20015. Intel was already the leading PC company when they were asked by Apple to provide the processor for iPhone. However, Intel turned down the opportunity. - Acquiring small companies.
Intel should expand its portfolio by acquiring other companies. It was reported that Intel plans to acquire GlobalFoundries in a $30 billion dollar deal in the hopes of making more chips for other tech companies (WSJ, 2021).
Intel Threats 2021:
- Rising competition.
Intel needs to maintain their status by ensuring that their technology and quality continues to improve. Although Intel remains the leading semiconductor today, there was a time in 2017 when Samsung was number one in the market, while Intel became the second biggest player.In 2020, Apple transitioned from Intel processors to their own custom chips (Business Insider, 2020). It’s only been used for Apple devices, but there is a possibility that it might be sold to other companies in the future. - Competing prices.
Other companies are trying to manufacture their own chips. This alone lowers Intel’s profitability, but some manufacturers offer their chips at a lower price. - Slow progress in the mobile industry.
At the pace that Intel is going for its development in the mobile market, they might get left behind in the competitive market of technology. As of December 2020, Apple A14 Bionic, which powers iPhone 12, tops the list of the best mobile processor. Samsung’s Exynos 2100 is also part of the list (Tech Centurion, 2021).
Intel SWOT Analysis Conclusion:
Intel has a strong technical foundation. Intel’s products are diverse and reliable, which is why they are trusted by millions of consumers. They are consistently working on their weaknesses such as finding ways to address the global chip shortage. As they have successfully cemented their name as the leading PC manufacturer, Intel should focus and invest in innovating the smartphone market. Intel should seize all the opportunities and progress well into the future as it is the only way they can remain as the world’s leading tech company.
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References:
- Macrotrends, (2021). Intel Revenue & Profit 2006-2021 | INTC. [online]. Macrotrends.
- New World Encyclopedia. Intel Corporation. [online]. New World Encyclopedia.
- Statista, (2021). Semiconductor companies market revenue worldwide from 2009 to 2020. [online]. Statista.
- Forbes, (2020). The World’s Most Valuable Brands. [online]. Forbes.
- Ranking the Brands, (2020). Rankings per Brand Intel. [online]. Forbes.
- Business Insider, (2020). The first Apple laptop powered by its all-new computer chip could be coming soon. Here’s everything we know about it so far. [online]. Business Insider.
- Hayes, A. (2021). Why AMD Is Intel’s Only Competitor (INTC, AMD). [online]. Investopedia.
- Intel. Delivering World-Changing Technology. [online]. Intel.
- Statista, (2021). Intel’s expenditure on research and development from 2004 to 2020. [online]. Statista.
- King, I. & Giles, T. (2021). Intel’s Latest Hail Mary Is a $20 Billion Bet on American Manufacturing. [online]. Bloomberg.
- Garcia, A. (2021). Intel CEO Reveals Full Self-Driving Car, Chip Production Plans At German Auto Show. [online]. Investors.
- Lee, T. (2021). Intel made a huge mistake 10 years ago. Now 12,000 workers are paying the price. [online]. Vox.
- Kumawat, K. (2021). Best Mobile Processor Ranking List 2021. [online]. Tech Centurion.
