Introduction
Intel Corp., the household name in microprocessor chipmaking, is aggressively aiming to derive bigger sales from non-PC segments like Data Center and Internet-of-Things (IoT) Chip manufacturing as its traditional business of PC chipmaking is weakening amidst lower PC and notebook shipments globally. The company’s recent product launches (like Atom Joule IoT Module) and investment choices point to this strategy. If this strategic shift is to happen, Intel will feel a greater influence from cloud vendors such as Amazon, along with corporate IT clients, networking and telecom carriers who are currently major customers of cloud and IoT services.
Link 1: http://marketrealist.com/2016/07/arm-softbank-aim-become-pioneers-iot/ …show more content…
Disappointing performance in 2015 – much of the difference is caused by the importance of non-PC segments even amid early indicators of PC declines abating and a potential for the mobile segment to post healthy sales with design win in Apple's iPhone. Inconsistency remains a key concern of the critical data center group's sales impact and estimated double-digit long-term annual growth amid lower near-term growth. Better intra-segment product mix has aided chip prices and sales. Memory and Internet-of-Things group sales currently remain small but hold best potential for Intel to exceed industry …show more content…
This segment is the biggest and the weakest as its end market suffers from PC shipment declines. Intel remains bullish on growth prospects for the cloud, where its sales may surpass enterprise IT's in 2016, rising from 20% of data center group sales in 2013. Intel believes that the cloud will transition from storing mostly people-related information to a system focused on device data. This will expand the data storage, processing and networking needs in the data center, where Intel has a strong presence. Intel also senses potential for gain in market share in connectivity chips from its current share of about