Intel is an organization that engages in designing, manufacturing, and selling of various products that are used in computers or by computers and the technology therein. It, therefore, operates in business segments such as client computing group, data center group, internet of things group, non-volatile memory solutions group, program solutions.
Growing competition from Qualcomm
Qualcomm has been an active member in the Internet of Things for a while earning more than a billion dollars from the chips meant for IoT devices and Google, one of Intel’s largest customers are intending to endorse QUALCOMM’s ARM chip over the Intel’s ×86 chip.
The use of ARM-based servers instead of Intel microprocessors puts the data revenues for Intel in the coming years and this is one of Intel’s profitable sector. Companies like Google might decide to build data centers on their own if they get ARM’s key intellectual property.
Internet of things
Today, the demand for devices that are connected is increasing and this will profit Intel both directly and indirectly. This is because for IoT devices to work, they need microcontroller and layers of sensors that will collect data and also a few chips that will be used for data or memory transition. Therefore this would create opportunities for Intel products that will be used in the IoT devices in global industries.
Global communication has grown and people communicate online nowadays using the 4G networks which are fast in transmitting data. Therefore, the use of IoT will require using much faster data network and Intel’s Quark chips are designed for the 5G networks.
3. What are Intel’s internal strengths and weaknesses?
Field-programmable gate array technology (FPGA)
Intel purchased Altera a company that deals in FPGA and with the increasing demand of this FPGA, Intel is hoping to make huge profits.
Artificial intelligence is considered as the next age in computing with every communications and Technology Company aiming for that. Intel, therefore, purchased the Nervana and Movidus chips hoping to build more on their artificial intelligence portfolio.
License to start building ARM-based chips
With increasing popularity in wearable’s, services on-demand, and drones, telecommunication companies will have to use the high powered Intel’s microprocessors, network infrastructure, and communications technology solutions.
Intel underestimated their competitors in the market and as result, they lost in the fight for the smartphone market. Also, Intel should be looking for new potential markets as technology customers drive the market for new technologies
Intel has discovered that the world is moving to an age that would require faster data networks and therefore intend to the development and advancement of the IoT, data centers and programmable solutions
Qualcomm is the leader in the designing of microchips and has been over the years. The company was among the pioneers in the 5G technology. The company also intends to buy the NXP technologies and this will put in a good position for their IoT and automotive processes. Broadcom buying this company will pose a great challenge on the Intel products as the combined efforts by the Broadcom and QUALCOMM will be the threat for the Intel Company.