Saturday, August 25, 2012

Jeremiah Bacon | eclipsedevelopers

Log In Register Now Help Home Page Today?s Paper Video Most Popular Times Topics Search All NYTimes.com Thursday, August 23, 2012 Business Day World U.S. N.Y. / Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money Advertise on NYTimes.com Business > Companies > Intel Corporation Intel Corporation Paul Sakuma/Associated Press Updated: Jan. 19, 2012 2011 Earnings: Fourth Quarter Intel?s profit rose only 6 percent in the fourth quarter, as the impact of last year?s catastrophic flooding in Thailand, which devastated hard-drive production, began to affect PC sales. The company posted net income of $3.4 Jeremiah Bacon or 64 cents a share, up from $3.2 Jeremiah Bacon or 56 cents a share, in the same quarter a year ago. Intel?s revenue increased 21 percent to $13.9 Jeremiah Bacon from $11.5 billion in the year-earlier period. Intel warned analysts in December 2011 that revenue would be weaker than they had predicted. After that announcement, Wall Street analysts lowered their average forecast to 61 cents a share, from 69 cents, on $13.72 billion in revenue. Intel has said that overall PC demand remains strong in the long term. The company expects the impact of the hard-drive shortage on PC sales to decline by the end of 2012. Intel executives said capital spending would rise to $12.5 billion in 2012 from $10.7 billion in 2011. The move is seen as an all-out effort to bolster competitiveness in the markets for smartphones and tablet computers, businesses in which products based on the rival ARM architecture have gained an early foothold, leaving Intel scrambling to catch up. The company is focusing on increasing the sales of its higher-margin chips that are used in ultrathins, the smaller, lighter computers that Intel calls Ultrabooks. Chips for the ultra-thin notebooks, like those sold by Toshiba, Lenovo and Acer, typically cost many times what PC chips cost, in large part because they are more energy-efficient, so profit margins are higher. Intel?s chief executive, Paul S. Otellini, told analysts that emerging markets continued to drive growth, with two out of three PCs sold into that market today. China now accounts for 20 percent of total PC demand. While 90 percent of households in the United States own PCs, China?s PC penetration rate is only 30 percent, amounting to a huge growth opportunity, Mr. Otellini said. Background The Intel Corporation is the leading maker of semiconductor chips and is known for its quest to make computer chips ever smaller, faster and cheaper. It also makes circuit boards and other semiconductor products, which are the building blocks of computers, servers, consumer electronics and communications devices. Intel supplies about 80 percent of the PC microprocessor chips worldwide. Read More? From 2008 to 2010, the dominant companies in the PC industry faced a constant stream of disappointment as their largest corporate customers put off replacing computers. A generation of faster chips, new software and bigger hard drives came and went with disappointing sales, as the big corporate buyers gave up on their tradition of replacing two-year-old machines. Intel?s fortunes underwent a profound shift during the period. The company was one of the first to feel the brunt of the recession and a global clampdown on technology spending. As a result, its sales plummeted at record rates. But it was also one of the first technology companies to benefit from renewed consumer interest in computers, specifically laptops, and its results in 2010 reflected this enthusiasm for new machines. In August 2010, Intel bought McAfee, a computer anitvirus software maker, for about $7.7 billion in cash. With the McAfee purchase, Intel gained an entrance into the security tech sector, one that is expected to continue growing. Intel is also pushing hard in the highly competitive race to put chips in smartphones and televisions and other consumer devices that are gaining computer power. In October 2010, it reported a flurry of sales of the company?s chips in TV and set-top boxes, figures that seemed to bode well for Intel?s consumer aspirations. Floods Overseas Cut Revenue, Create Opportunity In December 2011, Intel announced that its fourth quarter revenue would fall to $13.7 Jeremiah Bacon from $14.7 Jeremiah Bacon because floods in Thailand had sharply cut the world?s supply of disk drives. Without the drives, manufacturers will make fewer personal computers and computer servers, which means fewer semiconductors will be needed. While clearly bad news for Intel in the short run, the shortage of both components and finished personal computers could prove an opportunity for the company as it tries to fight the onslaught of tablet computers, particularly Apple?s iPad. It has been trying to build a business in the emerging category of ultrabook computers or ultrathins, which do not use hard drives. Ultrabooks, pioneered by Apple with its MacBook Air, are laptops less than 0.8 inch thick, typically with long battery lives. They are, in a sense, like tablets with an attached keyboard. Unlike a PC, they usually have solid-state drives that use flash memory chips, not mechanical hard drives. While ultrabooks weigh and cost slightly more than tablets, the larger screen and the familiar keyboard make them potentially attractive alternatives to tablets. Background Headquartered in Santa Clara, Calif., Intel was founded in 1968 by two giants of the early semiconductor industry, Gordon E. Moore and Robert N. Noyce, two of the founders of Fairchild Semiconductor. The company was initially financed with a $2.5 million investment arranged by a renowned Silicon Valley venture capital investor, Arthur Rock, who later helped finance Apple Computer. Intel got its big break in 1981 when International Business Machines, then known for manufacturing mainframe computers and other office machinery, selected Intel to provide it with the processor for its first personal computer, the I.B.M. PC. Within a few years, Intel had become one of largest corporations in the United States and one of the most recognizable brands in the world. In 2009, Intel was hit with an antitrust action by the European Union. Its first-quarter revenues for the year fell 26 percent to $7.1 billion and profit fell 55 percent. In December 2009 the Federal Trade Commission sued Intel, accusing it of using its dominant market position ?to stifle competition and strengthen its monopoly.? The filing went beyond charges in cases brought by European regulators and the New York state attorney general in focusing on video graphics chips and software in addition to Intel?s core market, the microprocessors that sit at the heart of personal computers. The F.T.C. move also came a month after Intel reached a sweeping $1.25 billion settlement with its longtime rival in the chip market, Advanced Micro Devices. That settlement, covering both private antitrust and patent claims, was seen as possibly deterring the F.T.C. from moving ahead. In its long-running legal fight with Intel, A.M.D. was both the leading victim of the giant chip maker and its chief investigator, generating most of the evidence that was then used by government regulators around the world. The Race to Build Smaller Chips Intel has long been held up as the gold standard when it comes to ultra-efficient, advanced chip manufacturing plants. The company is the last mainstream chip maker to both design and build its own products, which go into the vast majority of the PCs and servers sold each year. But with mobile technology, an expensive race is on to build smaller chips that consume less power, run faster and cost less than products made at older factories. Intel has unsuccessfully tried to carve out a prominent stake in the market for chips used in smaller computing devices like smartphones. But the company says one of its newer chips, Atom, will solve this riddle and help it compete against the likes of Texas Instruments and Qualcomm. In the last few years, Intel?s investment in Linux, the main rival to Windows, has increased. Intel has worked on developing a Linux-based operating system called Moblin as well. The company has aimed the software at netbooks and smartphones in a bid to spur demand for the Atom mobile device chip. To make Atom a success, Intel plans to use software for leverage. Its needs Moblin because most of the cellphone software available today runs on chips whose architecture differ from Atom?s. To make Atom worthwhile for phone makers, there must be a supply of good software that runs on it. The company?s push into selling chips that are embedded in things other than computers ? televisions as well as phones ? has brought with it an unfamiliar atmosphere of anonymity, as it foregoes the ?Intel Inside?? stickers it worked so hard to make ubiquitous on laptop?s and desktops. Intel continues to face investor doubts about its long-term prospects. Executives at Intel have maintained that the PC industry has plenty of life left as a growth market, especially as developing countries begin buying large quantities of computers. Investors, however, have yet to buy into this vision. Hide ARTICLES ABOUT THE INTEL CORPORATION Newest First | Oldest First Page: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Next >> Victor Poor, Intel Computer Chip Innovator, Dies at 79 By JOHN MARKOFF Mr. Poor, a computer engineer and amateur radio enthusiast, collaborated on development of microprocessors that propelled Intel to dominance in the computer chip industry. August 19, 2012, Sunday Dividend-Paying Stocks, Found in Unusual Places By PAUL J. LIM Utility and telecommunications stocks are the traditional dividend payers, but investors now have other places to turn for income, including technology stocks. August 18, 2012, Saturday Intel?s Net Income Rises, but Company Warns of Slower Growth By QUENTIN HARDY The company reported a rise of 3 percent to $2.8 Jeremiah Bacon but consumers are finding alternatives to PCs in smartphones and tablets, where Intel has little presence. July 17, 2012, Tuesday Change of Tone Could Help Google in European Antitrust Case By JAMES KANTER Joaqu?n Almunia, the European competition commissioner, has been open to a settlement with Google on claims it abused its dominance. April 25, 2012, Wednesday Intel Reports Flat Revenue, but Says Growth Is Ahead By QUENTIN HARDY The chip maker reported lower earnings in its first quarter, but said it expected a stronger second quarter on sales of cellphones and servers using Intel chips. April 18, 2012, Wednesday Senior at Stuyvesant High Finishes Third in Intel Science Competition By ELBERT CHU Judges for the Intel Science Talent Search asked Mimi Yen hard questions, and she didn?t know the answers to any of them. But Mimi was pleased. ?It was a good kind of brutal,? Mimi, 17, said in a telephone interview on Wednesday, the morning after she was awarded third place in the prestigious science competition. ?The questions are geared at looking at the thought process about things I didn?t know the answers to. I came out feeling foolish.? March 15, 2012, Thursday In New Landscape, A New Intel Chip By QUENTIN HARDY Intel formally issued the specs Tuesday on its new Xeon E5 processor, a chip designed for use in the servers of big data centers. It is impressive, with an 80 percent improvement in processing power. You can read about the specs from Intel and from The Register, a news site specializing in hardcore tech issues. As much as processing power, what came through just as clearly in Intel?s announcement is how much Intel?s world has changed. Intel makes great technology, but it faces new competito? March 12, 2012, Monday On Sundays, Danielle Goldman, 17, Studies the Science of Hanging Out By JOHN LELAND For Danielle Goldman, 17, a senior at the Bronx High School of Science, Sunday begins on Friday night, when she finishes her homework so she?ll have the weekend free to be with friends. March 11, 2012, Sunday Intel?s New Chip: A Best Defense in the Cloud By QUENTIN HARDY The reality of Intel?s presentation of its new Xeon E5 processor is that processing, long Intel?s strong suit, is now just one more feature alongside technology to enable twice the bandwidth throughput, enhanced security and energy management. Intel said the E5 offers better capability in all these, and can also be used as a chip in servers, data storage, and networking. March 6, 2012 Homeless Science Whiz Goes to Washington By KENNETH CHANG Intel Science Talent Search semifinalist Samantha Garvey got a grand tour of Washington this week. January 31, 2012, Tuesday SEARCH 1507 ARTICLES ABOUT THE INTEL CORPORATION: Match Any Word Match All Words Match Exact Phrase Page: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Next >> Copyright ? 2008. Quotes and other information supplied by independent providers identified on the vendor disclosures page. Multimedia Interactive Feature Intel?s Antitrust History Intel has been the target of antitrust investigations and lawsuits from around the world. A look at the cases that the world?s largest chip maker has battled for years. More Multimedia ? Add to Portfolio E-MAIL MOST POPULAR ? 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Helen Gurley Brown, Who Gave Cosmopolitan Its Purr, Is Dead at 90 Wondering How Far Magazines Must Fall Ethanol Quota Debated by Corn Farmers and Meat Industry U.S. Reliance on Saudi Oil Is Growing Again For Europe?s Economy, a Lost Decade Looms Slipping Behind Because of an Aversion to Taxes Stride Gum Campaign Satirizes Apple Publicity Machine Merkel Sides With E.C.B. on Spain and Italy European Economies Do Better Than Expected What Small-Business Owners Should Know About Private Equity Go to Complete List ? Giving their regards Also in Theater ? An ode to youth, forever fleeting Where playwrights take center stage Rss Feeds On Intel Corporation Subscribe to an RSS feed on this topic. What is RSS? Intel Corporation Get Alerts On Intel Corporation Receive My Alerts e-mails on topics covered on this page. INTEL CORPMore Alerts ? 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