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Intel Gearing Up To Face The Mobile Assault: It May Even Beat Them At Their Game

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Intel Gearing Up To Face The Mobile Assault: It May Even Beat Them At Their Game

News Release
Contact: Angela Crown,
[email protected]
Due: November 26, 2013
Forwarding: Permitted

The World’s Biggest Semiconductor Manufacturer Has Announced Plans To Expand The Use Of Its State-Of-The-Art Factories For Other Chipmakers. As Competition Escalates, Intel Hopes The Move Will Push Its Revenue By Taking Advantage Of Its Multi-Billion Dollars’ Worth Of Supply Chain Investment.

Specifically, Intel plans to manufacture chips to order for other companies instead of solely making its own as per tradition. By extending its foundry service, Intel could soon be making components for rivals such as Samsung, Nvidia and Qualcomm. This is seen by many experts as a bold departure for Intel, a decision that the current CEO is more willing to make than his predecessor Paul Otellini.

Given that Intel’s sales forecast for next year does not include any drastic change, and so does the capital spending on equipment and facilities of around $US11 billion, the company needs to adapt its supply chain strategy to stay competitive. Another measure for Intel to tackle the below-analyst-expectation revenue in 2014 is focusing more on providing what consumers want rather than trying to push its own designs, said Brian Krzanich – the sixth Intel’s CEO.

“One of Intel’s competitive advantage is its aggressive investment in manufacturing technology, which is fed by its sale volume. To ensure the cycle goes on smoothly, the company is refining its market understanding as it should be.” – said Vivek Sood, CEO of Global Supply Chain Group.

Famous for its effective product development cycle encapsulated in the “tick-tock strategy” since 2007, Intel is doing what they can to avoid becoming insular. The PC market is predicted to be down in the “low single-digit” percent, albeit the decline rate may be slow due to improved demand from enterprises and some developed markets. “Our view is that it’s declining but it’s beginning to show signs of stabilization”, said Krazanich.

Meanwhile, the mobile market is expanding rapidly, prompting Intel to start manufacturing chips for companies that are beating it in mobile phones, Krazanich confirmed.

Moreover, Intel will also focus on developing parts for a smaller number of phone makers with large sales volumes. Intel’s newly appointed President Renée James said: “In addition to Intel’s traditional areas of strength, increased integration will be Intel’s future and we plan to leave no computing opportunity unserved”.

Intel’s CEO said the company needs to catch up with the ultra-fast pace of mobile growth by delivering new products. The company also plans to have chips in sub-$100 devices and ship more than 40 million tablet chips in 2014. Given the fact that the mobile chip market is dom inated by ARM, Intel plans to be serious contender with next year’s release of Atom chips for smartphones and tablets. A line-up of new products is already announced as Intel pursues its goal of boosting mobile chip graphics performance by 15 times by 2016.

“Intel is not giving up on mobile. It is trying to bring its advanced product phasing to the new competitive landscape, which has earned it the top position in the PC component industry.” – said Sood, author of Move Beyond the Traditional Supply Chains: The 5-STAR Business Network.

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ABOUT THE PRINCIPAL AUTHOR

Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
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If you are deeply passionate about the world of business and supply chain networks as I am, and enjoy digging answers to critical questions that will help build and steer your business with wisdom, then join me. This book is a journey of exploration through the world of business networks that run along the veins of today’s commercial world.

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OUTPERFORM OUTSOURCE OUTPROFIT

The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.

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Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.

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Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.

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Companies Can Multiply Profits By Progressively Ramping Up Cohesion And Collaboration Of All Moving Parts In B2B Network To Achieve Tighter Integration.

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GREEN SUPPLY CHAIN – AN ACTION MANIFESTO

It is generally accepted that environmental consciousness is now changing to environmental proactiveness as organizations are discovering that it makes good commercial sense.

Boards are asking the management to review their policies related to environmental norms, not only to bolster their corporate social responsibility aims, but also because consumers are asking for greener supply chains

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