Intel had posted record year in 2005 for revenues at USD 38.8 billion, and its second highest year for net income at USD 8.6 billion. However, as demand slows and as it faces increasing competition from its peers, Intel would find it difficult to maintain its momentum in 2006, reports IT research firm In-stat.
According to the research firm, the company would face slow demand and competition its is for higher-margin products.
According to the research finding, in spite of the introduction of dual-core processors for desktop PCs and servers in 2005, it continues to struggle against Advanced Micro Devices in both the sectors. Intel does, however, maintain a formidable position in the fastest-growing platform—the mobile PC.
"In the second half of 2006, Intel will completely revamp its product line with more competitive processors that offer higher performance and greater power efficiency," says Jim McGregor, In-Stat analyst.
The research, "Intel, Year in Review: A Year of Mixed Results," provides details on new products, future product roadmaps, Intel's strategy for each product segment, and major developments by its key competitors. The research also provides an analysis of economic and industry developments with a projection of future growth rates.
Key findings of the recent research are:
in memory, Intel launched a new joint venture for NAND Flash that is demonstrating good potential for future growth
Intel has begun a new round of platform branding around the concept of the entertainment PC. The Viiv brand, however, is less defined than previous Intel brands. As a result, it faces challenges in establishing a meaningful connection with consumers.
Intel has been able to ramp up the 65nm process quicker and at a lower cost than anticipated, and is now in production at three fabs with one more coming on-line in 2006
To capture the emerging Asian market, Intel has also announced that it would introduce low-priced computer. To promote the use of computers for education and public utility in developing countries, the company has announced an investment of USD 1 billion over the next five years.
This initiative dubbed, the Intel World Ahead programs, outlines three strategies of increasing the availability of low-cost personal computers, expanding wireless broadband Internet accessibility and introducing more computers into the classrooms in underdeveloped and developing countries.
As vendors struggle to capture the biggest share of the market, more innovative and low-priced products would enter the market, helping the growth of emerging Asian markets.
