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Intel Promises Sweeping Overhaul Amid PC Slowdown, Rival’s Gains

Intel Promises Sweeping Overhaul Amid PC Slowdown, Rival’s Gains. Justin Ward. Intel. Chips provide the calculating power in many personal computers Long one of the most profitable among large manufacturing companies Main rival is AMD. Problems.

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Intel Promises Sweeping Overhaul Amid PC Slowdown, Rival’s Gains

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  1. Intel Promises Sweeping Overhaul Amid PC Slowdown, Rival’s Gains Justin Ward

  2. Intel • Chips provide the calculating power in many personal computers • Long one of the most profitable among large manufacturing companies • Main rival is AMD

  3. Problems • Facing stiff competition, and slowing computer sales • AMD has made steady gains with technology improvements and aggressive marketing • PC Demand • Chip set shortage, drove customers to AMD but also led to several million units of unused microprocessors to stack up

  4. Solutions • Planning a sweeping restructuring of its operations • “We will restructure, resize and repurpose Intel Corp. for where we thing the business is going” • Trim spending by more than $1 Billion, plus a #300 million reduction in investments on factories and equipment • Taking a hard look at the individual businesses and projects that are losing money and taking steps to reduce operating costs, improve employee productivity and speed decision-making • Look at anything that indicate a loss

  5. Future Outlook • Home and health units remain promising, and are on track to deliver $1 Billion in revenue the first year of their product launches • New Brand vPro, for chips for desktop computers • Might choose to focus on cutting products in the communications area

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