Intel Promises Sweeping Overhaul Amid PC Slowdown, Rival’s Gains - PowerPoint PPT Presentation

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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