Intel Moves Forward

By Gregory S. Davis | January 05, 2006 AAA

A new year gives everyone a chance at a new beginning. On Jan 5th Intel (INTC) is set to reveal its upgraded self to the world at the Consumer Electronics Show in Las Vegas. Paul S. Otellini, who succeeded Craig R. Barret as Intel's CEO in May of 2005, will formally introduce the new Intel to the world today at 4:30pm. Changes will include a new Intel logo and the new catch phrase "Leap Ahead".

The changes actually started during the 1st Quarter of 2005 when the new CEO, Otellini, introduced new business units including the following (numbers in 100,000s):

intel_newops_1.gif

For the nine months ending October 1, 2005 Intel derived 72% of its' Net Revenue from microprocessor sales in the Digital Enterprise and Mobility Groups. Intel has realized that in order to stay competitive they must change their focus from PC chip dominance to digital application dominance.

In a shift towards controlling the digital home entertainment experience Intel's will release Viiv (sounds like five) early this year. Viiv is the first new brand Intel will push out of its Digital Home Group. It is a one stop shop for all of your home media entertainment needs. Viiv is a fully functional computer coupled with a television viewing experience that will allow users to download movies and music on demand, record and store television programs. It will also be able to connect to DVD players and other portable devices.

Intel is not alone in the pursuit to win the hearts of home entertainment enthusiasts. Apple's iMac (AAPL), Microsoft's Media Center (MSFT), and Cisco's (CSCO) recent forays into acquiring Scientific-Atlanta (SFA), the set-top box maker, are also working on making the divide between TV and PCs disappear.

What is impressive about Intel's move into the digital home and health space is the group of social scientists, ethnographers (professionals who study and describe modern human cultures), doctors and engineers Otellini has teamed together. The goal for Intel's next generation of products is to put the focus on satisfying customer needs and not just figuring out how to make a more powerful chip.

By incorporating the expertise of the technology experts along with social experts, Intel is poised to lead the way in developing technology solutions for today's consumers.

Recruitment is still in full swing as Intel continues to ramp up the company to focus on delivering products that improve life. To go along with the 20,000 employees added in 2005 Intel has lined up on-campus recruiting events at college campuses in and between UCLA in California and MIT in Boston.

The new logo and the new tag line are reflections of the focus and cultural changes in the organization. Intel is making needed adjustments to diversify its product lines by combining the best of technology with an acute understanding of people. With the start of the new year, Intel is taking the opportunity to remake itself in order to play in the consumer home electronics field of tomorrow.

Related Analysis
  1. Markets End Week On Positive Note As Investors Are Encouraged By Central Bank Developments ...
    Stock Analysis

    Markets End Week On Positive Note As Investors Are Encouraged By Central Bank Developments ...

  2. Is Natural Gas About to Tank?
    Chart Advisor

    Is Natural Gas About to Tank?

  3. Short Sellers Are Targeting This 'Forever Stock'
    Investing

    Short Sellers Are Targeting This 'Forever Stock'

  4. Is It A Breakout? See The Point-And-Figure Chart
    Chart Advisor

    Is It A Breakout? See The Point-And-Figure Chart

  5. Will YouTube's Subscription Music Service Be Profitable?
    Stock Analysis

    Will YouTube's Subscription Music Service Be Profitable?

Trading Center