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Intel Revenue By Segment

Intel Revenue By Segment
Intel Revenue By Segment

Business Overview

The chart attached above provides a breakdown of Intel Revenue By Segment. They are a world leader in the design and manufacturing of essential technologies that power the cloud and an increasingly smart, connected world. They offer computing, networking, data storage, and communications solutions to a broad set of customers spanning multiple industries. In 1968, Intel was incorporated in California (reincorporated in Delaware in 1989), in what became known as Silicon Valley, and their technology has been at the heart of computing breakthroughs ever since.

Intel Revenue By Segment

Revenue By SegmentQ1 2018
Client Computing Group$8220 million
Data Center Group$5234 million
Internet of Things Group$840 million
Non-Volatile Memory Solutions Group$1040 million
Programmable Solutions Group$498 million
All Other$234 million

The chart attached above provides a breakdown of Intel Revenue By Segment. Their operating segments are:

  • Client Computing Group (CCG)
  • Data Center Group (DCG)
  • Internet of Things Group (IOTG)
  • Non-Volatile Memory Solutions Group (NSG)
  • Programmable Solutions Group (PSG)
  • All other

CCG: The landscape of the client computing market is shifting, with new markets and devices, new consumer expectations, and new ways to connect to the cloud. They have focused their strategy on these growth opportunities by enhancing platforms and adjacent technologies to reinvigorate PC demand and provide new user experiences. Today, CCG spans a broader set of devices and a wider array of uses, such as smart homes, virtual reality, and video streaming. The chart attached above provides a breakdown of Intel Revenue By Segment, and highlights that most of Intel’s revenue comes from the CCG division.

As these new uses become mainstream in their daily lives, an increasing amount of data will flow between PCs or PC-like devices and the data center. While they are transforming from a PC-centric to a data-centric company, CCG continues to be a critical part of the Virtuous Cycle of Growth, generating significant amounts of data and driving the growth of new uses, as well as the need for continued expansion of the cloud and data center.

DCG: Data is a significant force in society today and data is generated by intelligent and connected machines. Data is the lifeblood for the future of technology innovation and actionable insights. Data is transmitted through network infrastructure, processed, and analyzed to become real-time information. The “Intel Revenue By Segment” chart attached above highlights that this is the second largest segment for the chipmaker in terms of sales.

IOTG: They are uniquely equipped to offer technologies that enable solutions that work across the entire Internet of Things—at the edge, in the network, or in the cloud—enabling businesses to extract the right insights, in the right place, at the right time. They offer end-to-end solutions with their wide spectrum of products, including Intel Atom to Intel Xeon processor-based computing, wireless connectivity, FPGAs, and Wind River* software. IOTG leverages adjacent product investments across Intel while making the investments needed to adapt products to the specific requirements for IOTG vertical segments. For example, applications in the industrial sector require technologies such as extended temperature ranges, functional safety, time-coordinated computing, and long-life support.

With IOTG, they enable a global ecosystem of industry partners, developers, and innovators to create solutions based on their products that accelerate return on investment and time-to-value for end customers. These Intel® IoT Ready Solutions are vetted and tested in the market, commercially available, and fully supported through their ecosystem partners. One example is the Intel architecture-based Cisco* Connected Factory Network*, which improves factory operation efficiency and reduces costs by connecting factory automation and control systems to IT systems.

NSG: Intel Optane technology is a major memory breakthrough with revolutionary performance profiles. This innovative technology combines the performance, density, power, non-volatility, and cost advantages of existing non-volatile memories with the attributes of conventional memories like DRAM. In 2017, they expanded their portfolio by delivering products based on Intel Optane technology, specifically Intel Optane memory, a PC system acceleration module, and highly responsive SSDs for both the data center and enthusiast markets.

Their Intel 3D NAND technology offers the highest density in the industry, enabling higher capacity media and more gigabytes per wafer. By transitioning their manufacturing capacity from a 2D NAND/3D NAND mix to 100% 3D NAND by the end of 2017, they helped drive a transformation in storage economics, with their cost-per-gigabyte approaching the cost of traditional hard disk drives. In 2017, they led the industry with the first 64-layer, TLC, 3D NAND SSDs for data center, client, and embedded segments.

PSG: With the rise of pervasive connectivity and autonomous transactions, a vast network of devices and systems are linked from the edge through infrastructure to the cloud. The Intel® FPGA portfolio enables this transformation with discrete FPGAs and software defined-hardware based multi-function acceleration cards that allow faster end-product development times, high performance, and power efficiency with overall lower total cost of ownership. In the cloud, where workloads shift dynamically and algorithms change, Intel FPGAs are the ideal solution for adapting to new demands through reconfigurability.

In 2017, PSG began shipping the industry’s first high-density >1million logic elements ARM-based FPGA (Intel Stratix 10 SX FPGAs), which provide an ideal solution for 5G wireless communication, software defined radios, secure computing for military applications, NFV, and data center acceleration. In addition, they announced availability of the Intel Stratix 10 MX FPGA, the industry’s first FPGA with integrated High Bandwidth Memory DRAM for high-performance computing, data centers, NFV, and broadcast applications. It enables the ability to compress and decompress data before or after mass data movements. To simplify and expedite the benefits of FPGA-accelerated solutions, PSG developed a combination of hardware platforms, a software acceleration stack, and ecosystem support in a compelling new approach and introduced the first in a family of Intel Programmable Acceleration Cards. These cards, when combined with an Acceleration Stack, plug easily into any Intel Xeon processor-based server and boost performance while minimizing power consumption for complex, data-intensive applications such as AI inference, video streaming analytics, database acceleration, and more.