intel-business-model

How Does Intel Make Money? Intel Business Model In A Nutshell

Founded in 1968 by Gordon Moore, which would go on to formulate one of the most reliable laws in technology, Intel has been able to survive and thrive through several waves of technology. Intel is transitioning from becoming a PC-centric company to becoming a data-centric company. 

Intel: from PC-centric to data-centric

Around 2013 Intel set a plan and strategy to transform itself from a PC-centric to a data-centric company. By 2018 this objective was almost accomplished at least from a revenues standpoint:

intel-revenue-sources

The company generated around 37 billion dollars from PC-centric products. While it made nearly $34 billion from data-centric products.

Intel innovation strategy primarily moves around investments in advanced manufacturing processes and packaging, architecture, interconnects, and embedded security features, as part of Intel’s efforts to be the leading end-to-end platform provider.

intel-data-centric-business

Intel Annual Report 2018

As of 2018, 32% of Intel revenues came from its essential data-centric products.

intel-pc-centric-business

Intel Annual Report 2018

While its PC-centric products represented around 52% of its revenues.

intel-products

Intel Annual Report 2018

Intel portfolio comprises products that span across platform products, to accelerators and memory and storage components.

intel-end-to-end-products

Intel Annual Report 2018

And Intel moves around an end-to-end strategy, where it can move across the whole integrated chain. And by offering products in several innovation areas such as cloud computing, 5G network, AI and analytics, edge computing, and more.

intel-financials

Intel Annual Report 2018

While Intel is successfully transitioning its transformation to become a data-centric company, from a purely financial standpoint, the company is highly profitable. With over $70 billion revenues in 2018 and over $21 billion in net income in 2018.

Business resources:

Other business model analyses:

Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, professionals, and entrepreneurs in 2019 alone | Gennaro is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate and become profitable | Gennaro is an International MBA with emphasis on Corporate Finance | Subscribe to the FourWeekMBA Newsletter | Or Get in touch with Gennaro here

Leave a Reply