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Why Intel partners with Fossil to expand in “wearables” space
In September 2014, Intel (INTC) announced its collaboration with Fossil (or FOSL). The companies will work together to develop innovative wearable technology for the fashion-conscious crowd.
In March 2014, Intel (INTC) completed its purchase of Basis Science. Basis Science specializes in wearable device technologies for health and wellness applications.
In March 2014, Intel (INTC) announced that it invested $740 million in Cloudera—in return for an 18% stake ownership in the company.
Huge investments are required to operate fabs. Unlike other chip makers, Intel (INTC) hasn’t outsourced its fabs. It has invested heavily in them over decades.
Under its foundry operations, Intel (INTC) offers foundry services to its customers. The services involve silicon and manufacturing technology.
Intel Core M processors, or Lama Mountain, are expected to be available by the end of October 2014. They should lead to more design wins for Intel.
In August 2014, Intel (INTC) shared details about its development with 14nm technology. 14nm succeeds Intel’s 22nm technology.
The tablet market is providing rapid growth. As a result, Intel (INTC) is aggressively pursuing the market. Intel wants to diversify its offerings from the slumping PC market.
Intel has spent huge amounts on developing expertise in manufacturing technology. Its 14-nanometer low-power manufacturing process already has many takers, as discussed earlier in this series.
To reduce its dependence on the PC market, Intel has shifted its focus towards alternate growth markets. Still, it derives a major portion of of its revenues from the PC market, and is highly vulnerable to any adverse development in the industry.
Gross margins are expected to improve in the future driven by better yields from the 14nm node and higher volume.
Intel’s sluggish growth in recent years has weighed on its historical dividend growth rate. Apart from spending cash to pay dividends, Intel has aggressively bought back its own shares.
In accordance with its mobile strategy in 2010, Intel acquired McAfee for ~ $7.7 billion. Intel acquired McAfee with the intent of integrating its security solutions into Intel-manufactured chips.
According to an IMS Research forecast, 30 billion Web-connected devices are expected to be online by 2020. Intel changed its reporting structure in 1Q14 and now categories the Internet-of-Things, or IoT, as a separate product segment.
According to the New York Times, data centers used 2% of all electricity in the U.S. in 2010. And, this consumption is only expected to rise in the future. In response, Intel has customized its Xeon products for specific customers and workloads.
All the segments of the DCG registered growth. Enterprise and networking recorded growth of 11% and 16%, respectively. High performance computing and cloud service providers grew 22% and 34%, respectively.
Two-in-one devices are a cross between a tablet and a laptop and feature a detachable keyboard. Increasingly, these devices are seen as potential replacements for the traditional PC.
To reduce its dependence on the PC market, Intel has diversified its reach and offerings in high-growth areas like cloud, mobile computing, tablets, and the Internet of Things.
Intel designs as well as manufactures advanced integrated digital technology platforms. A platform is comprised of a microprocessor and chipset that can be enhanced by additional hardware, software, and services.
Households with a Netflix or Hulu subscription were three times more likely not to have a cable subscription than the average household in 2013.