Intel Corporation
Intel Corporation (NASDAQ: INTC) is an American multinational semiconductor chip maker corporation headquartered
in Santa Clara, California.
Intel is the world's largest and highest valued
semiconductor chip maker, based on revenue. It is
the inventor of the x86 series of microprocessors, the processors found in most
personal computers.
1-Product
2-Introduction
In
1968, Robert
Noyce
and Gordon
Moore
were two unhappy engineers working for the Fairchild Semiconductor Company who
decided to quit and create their own company at a time when many Fairchild
employees were leaving to create start-ups. People like Noyce and Moore were
nicknamed the "Fairchildren".
Robert
Noyce typed himself a one page idea of what he wanted to do with his new
company, and that was enough to convince San Francisco venture capitalist Art
Rock to back Noyce's and Moore's new venture. Rock raised $2.5 million dollars
in less than 2 days by selling convertible debentures. Art Rock became the
first chairmen of Intel.Intel Trademark
The
name "Moore Noyce" was already trademarked by a hotel chain, so the
two founders decided upon the name "Intel" for their new company, a
shortened version of "Integrated Electronics". However, the rights to
the name had to bought from a company called Intelco first.
In
1972, Intel introduced the first 8-bit microprocessor the 8008. In 1974, the
Intel 8080 microprocessor was introduced with ten times the power of the 8008.
In 1975, the 8080 microprocessor was used in one of the first consumer home
computer - the Altair
8800
that was sold in kit form.
In
1976, Intel introduced the first micro-controllers, the 8748 and 8048, a
computer-on-a-chip optimized to control electronic devices.Though produced by the USA’s Intel Corporation, the 1993 Pentium was basically the outcome of a research conducted by an Indian engineer. Popularly known as the Father of the Pentium chip, the inventor of the computer chip is Vinod Dham.
3-Launching a product in the Market
Product and
market
SRAMS and the microprocessor
Intel's first products were shift register memory and random-access memory integrated circuits, and Intel grew
to be a leader in the fiercely competitive DRAM, SRAM, and ROM markets throughout the 1970s.
Concurrently, Intel engineers Marcian Hoff, Federico Faggin, Stanley Mazor and Masatoshi Shima invented Intel's first microprocessor. Originally developed for the
Japanese company Busicom to replace a number of ASICs in a calculator already produced by
Busicom, the Intel 4004 was introduced to the mass market on
November 15, 1971, though the microprocessor did not become the core of Intel's
business until the mid-1980s. (Note: Intel is usually given credit with Texas Instruments
for the almost-simultaneous invention of the microprocessor)
From DRAM to microprocessors
In 1983, at the dawn of the personal
computer era, Intel's profits came under increased pressure from Japanese
memory-chip manufacturers, and then-president Andy Grove focused the company on
microprocessors. Grove described this transition in the book Only the Paranoid Survive. A key element of his plan was the
notion, then considered radical, of becoming the single source for successors
to the popular 8086 microprocessor.
Until then, the manufacture of complex
integrated circuits was not reliable enough for customers to depend on a single
supplier, but Grove began producing processors in three geographically distinct
factories, and ceased licensing the chip designs to competitors such as Zilog and AMD. When the PC industry boomed in the
late 1980s and 1990s, Intel was one of the primary beneficiaries.
"Intel
Inside" and other 1990s programs
During this period, Intel undertook
two major supporting programs. The first is widely known: the 1991 "Intel Inside" marketing and branding
campaign. The idea of ingredient branding was new at the time with only Nutrasweet and a few others making attempts to
do so. This campaign established Intel, which had been a component supplier
little-known outside the PC industry, as a household name.
The second program is little-known:
Intel's Systems Group began, in the early 1990s, manufacturing PC "motherboards", the main board component of a
personal computer, and the one into which the processor (CPU) and memory (RAM)
chips are plugged. Shortly after, Intel began manufacturing fully configured
"white box" systems for the dozens of PC clone companies that rapidly
sprang up. At its peak in the mid-1990s, Intel manufactured over 15% of all
PCs, making it the third-largest supplier at the time.
During the 1990s, Intel's Architecture Lab
(IAL) was responsible for many of the hardware innovations of the personal
computer, including the PCI Bus, the PCI Express (PCIe) bus, the Universal Serial Bus
(USB), Bluetooth wireless interconnect, and the
now-dominant architecture for multiprocessor servers. IAL's software efforts
met with a more mixed fate; its video and graphics software was important in
the development of software digital video, but later its efforts were largely
overshadowed by competition from Microsoft. The competition between Intel and
Microsoft was revealed in testimony by IAL Vice-President Steven McGeady at the Microsoft antitrust trial.
Advertising and brand management
Intel has become one of the world's
most recognizable computer brands following its long-running Intel Inside
campaign. The campaign, which started in 1991,
was created by Intel marketing manager Dennis Carter. The five-note jingle was
introduced the following year and by its tenth anniversary was being heard in
130 countries around the world. The initial branding agency for the Intel
Inside campaign was DahlinSmithWhite Advertising of Salt Lake City. The Intel swirl logo was the
work of DahlinSmithWhite art director Steve Grigg under the direction of Intel
president and CEO Andy Grove.
The Intel Inside advertising
campaign sought public brand loyalty and awareness of Intel processors in
consumer computers. Intel paid some of the advertiser's costs for an ad that
used the Intel Inside logo and jingle.
In 2008, Intel planned to shift the
emphasis of its Intel Inside campaign from traditional media such as television
and print to newer media such as the Internet. Intel required that a minimum of
35% of the money it provided to the companies in its co-op program be used for
online marketing. The Intel 2010 annual financial report indicated that $1.8
billion (6% of the gross margin and nearly 16% of the total net income) was
allocated to all advertising with Intel Inside being part of that.
4.Why we choose this brand name?
INTEL
Definition / INTEL Means
The
Meaning of INTEL
So
now you know - INTEL means "Intelligence" or "CPU
manufacturer" - don't thank us. YW! Do
you know the slang dictionary meaning
of YMCMB
or what QQ
means?
What does INTEL mean? INTEL is an acronym, abbreviation or slang word that is explained above where the INTEL definition is given.
What does INTEL mean? INTEL is an acronym, abbreviation or slang word that is explained above where the INTEL definition is given.
Intel was originally founded in Mountain View, California in 1968 by Gordon E. Moore (of "Moore's Law" fame, a chemist and physicist), Robert Noyce (a physicist and co-inventor of the integrated circuit),
and Arthur Rock (investor and venture capitalist).
Moore and Noyce came from Fairchild Semiconductor
and were Intel's first two employees. Rock was not an employee, but he was an
investor and Chairman of the Board.
The total initial investment in Intel was $2.5 million convertible debentures
and $10,000 from Rock. Just 2 years later, Intel completed their initial public offering
(IPO), raising $6.8 million ($23.50 per share). Intel's third employee was Andy Grove, a chemical engineer,
who later ran the company through much of the 1980s and the high-growth 1990s.
Moore and Noyce initially wanted to
name the company "Moore Noyce". The name, however, was a partial homophone for "more noise" – an
ill-suited name for an electronics company, since noise in electronics is
usually very undesirable and typically associated with bad interference. Instead they used the name NM
Electronics for almost a year, before deciding to call their company Integrated
Electronics or "Intel" for short. Since "Intel" was
already trademarked by the hotel chain Intelco, they had to buy the rights for
the name.
5-Protect
Ability
Intel® Identity Protection Technology (Intel® IPT) helps
provide a simple, tamper-resistant method for protecting access to your
customer and business data from threats and fraud. As a feature in all Intel
inspired Ultrabook™ devices and the latest business PCs utilizing Intel® Core™
vPro™ processors, Intel IPT can be a key component in two-factor authentication
solutions for online websites and business log-ins.
Legal Intel
Legal Intel is
a dedicated legal recruitment agency in Tokyo. Our expertise is in the search
and placement of qualified lawyers and non-qualified legal professionals into
mid to top-tier international companies as well as support function staffs into
law firms.
We service both Japanese and international clients who are looking to hire qualified lawyers (Japan and overseas admitted) and non-qualified legal professionals. Our coverage focuses on mid to senior level legal jobs in Tokyo and covers all levels, from General Counsels and Legal Counsels, through to Corporate Compliance Officers, Legal/Contract Managers and Legal Staffs.
With a proven track record of successful legal searches in Tokyo, our industry knowledge, unique recruitment methodology and approaches ensure we deliver results.
We service both Japanese and international clients who are looking to hire qualified lawyers (Japan and overseas admitted) and non-qualified legal professionals. Our coverage focuses on mid to senior level legal jobs in Tokyo and covers all levels, from General Counsels and Legal Counsels, through to Corporate Compliance Officers, Legal/Contract Managers and Legal Staffs.
With a proven track record of successful legal searches in Tokyo, our industry knowledge, unique recruitment methodology and approaches ensure we deliver results.
6-Slogan
Intel is a
brand name of Integrate Electronic.
Intel has
slogan called “Intel Inside”.
7-Logos
Intel
Brand Logos
|
||||
Corporate
Logo
|
Date
|
Intel
Inside Logo
|
Date
|
Remarks
|
1968–2005
|
1991–2003
|
The original "Intel Inside" logo. It was
used both stand alone and with the associated processor brand name.
|
||
2003–2005
|
Highly similar Intel Inside logo, but changed
to resemble the original Intel logo with lowering of the Intel "e"
and changing the typeface.
|
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2005–present
|
2006–2009
|
Intel phased out the original corporate Intel
and Intel Inside logos in favor of a new base Intel logo similar the
older Intel Inside logo, but omitting the word inside. The
typeface was changed to Neo Sans Intel.[146] In some
instances the slogan Leap ahead was added to the corporate logo.
|
||
In 2009, the Intel Inside logos were updated to
a horizontal shape with a visual exposure of silicon below the label to help
portray the idea that Intel is in the chips inside the computer. The various
brand names were used on this basic shape including Core, i3, i5, i7, Atom,
Pentium, and Xeon. Other logos included the names Chipset, Server
Board, and Workstation Board.Still used as Celeron Sticker.
|
||||
2011–present
|
The Intel Inside logos are slightly modified to
move the exposed silicon image to the middle of the logo. This also moved the
inside word up next to the Intel logo more closely associating
them. The product brand name is displayed at the bottom of the logo.
|
8. Packaging of Intel
Package Materials
The PBGA package consists of a wire-bonded
die on a substrate made of a two-metal layer copper clad bismaleimide triazine (BT) laminate. Four-metal
layer substrate designs generally contain additional power and/or ground planes
to improve electrical and thermal performance. The die and bonds are protected
and encapsulated with molding compound. Via holes drilled through the substrate
provide routing from the lead fingers to the respective eutectic (63/37 Sn/Pb)
solder balls on the underside. Thermal performance can be enhanced by adding
heatsink fastened through mechanical means using thermal grease or by using
conductive epoxy.
The H-PBGA and HL-PBGA, however, are configured
differently to provide for greater thermal and if required, electrical
performance. The thermal advantage provided by this design is based first upon
attaching the die to the bottom surface of a heatspeader or slug that also
forms the topside of the package. Secondly, because the copper heatspreader
forms the top of the package, the thermal resistance is extremely low and
exposes the package surface to available air flow. If required, this heatslug
can be directly coupled to active or passive thermal management devices such as
heat sinks or heat pipes. Improved electrical performance is achieved through
additional power and/or ground planes.
The FC-style, H-PBGA package consists of a die reflowed
onto an oraganic substrate. The substrate consists of four to ten layers of
copper with insulating materials in between. The copper layers are connected by
vias. BT (Bismaleimide Triazine) resin reinforced with glass fiber forms the
core of the organic substrate. Solder bumps (3% Sn, 97% Pb) on the die surface
are joined with solder pads (60% Sn, 40% Pb) on the organic substrate in a
reflow furnace. These joints form the electrical/ mechanical connection between
the FC die and the OLGA package. An epoxy underfill fills the gap between die
and the substrate. This underfill provides mechanical support and protection
for the dieto-package interconnects and also minimizes thermal stress on the
die due to CTE (coefficient of thermal expansion) mismatch with the substrate
materials. The die backside is exposed allowing the thermal solutions and
thermal interface material to have direct contact with the die surface.
BGA packaging can be used for high-performance
applications with high thermal and electrical requirements. BGAs fit ICs into a
smaller footprint, decreasing pitch spacing, by utilizing an array of solder
ball connections. This allows for a higher density of I/O connections than that
of conventional QFPs or PGAs. The result is a considerably smaller finished
package size. In general, the ball grid array features shorter electrical path
lengths which reduce inductance. Mechanical problems such as fragile leads are
absent. The larger spacing between solder lands provides adequate tolerances
for more reliable surface mounting. Some heat dissipation can be facilitated through
the substrate. These characteristics make the ball grid array package suitable
for a wide variety of devices: microprocessors/microcontrollers, ASICs, memory,
PC chip sets, and other products. A thin profile and smaller footprint make the
BGA an attractive option when board space is a major concern. Small body size
BGA packages come close to chip scale package size for use in space constrained
applications. The FC-Style, H-PBGA also allows for Voltage Identification
through an open circuit or a short to Vss on the processer substrate. These
opens or shorts are achieved by selectively depopulating some of the balls.
Voltage Identification can be used to support automatic selection of power
supply voltages.
Every
month more than 4 million billion (4 x 1015) transistors are produced; more
than half a million for every human on the planet. Most computer chips each
comprise more than 7 million transistors.
Twelve
years ago computer chips, in the eyes of consumers, were a generally unknown
component of PCs - a commodity product. From a competitive standpoint, a
computer chip is a typical commodity. Take one out, put another in, no
performance difference. Chips are something most customers don't see, many
don't understand, and large numbers don't care about.
But
Intel has built a brand around a commodity. The company was founded in 1968 and
went public in 1971. By 1997, it controlled 90% of the world's market for
personal PC microprocessors. Although the market is more competitive today,
Intel is still the largest chip manufacturer in the world.
9.1. The need for an ingredient brand
Intel developed the chips which set the standard for personal computing during the 1980s, beginning with the 8086 chip and then developing a series of product improvements. Competitors rapidly adopted the same naming convention, and Intel's product names - the 286, 386 and 486 could not be protected. Intel had to find a way to become distinctive in what seemed to consumers to be a confusing, commodity marketplace.
When
Intel lost its battle for the "386" trade mark, they began the
transition from a microprocessor producer to a branded products company. In
1991, the "Intel Inside" brand ingredient programme was launched with
almost 200 OEM (Other Equipment Manufacturers) partners with the objective of
creating a consumer brand to make sense of the rapidly changing product cycles.
Intel
already had an established reputation as a quality producer of microprocessors
amongst the OEMs. However, Intel needed to differentiate itself from its
competitors and build a consumer brand. Intel believed it could position its
chips as a premium product, which it could in turn sell at a premium price to
computer manufacturers. To give computer manufacturers and their retail
customers more reason to identify Intel in their marketing, Intel chose to market
its product as a branded component.
Intel
convinced manufacturers that their computers would have higher perceived value
if they featured Intel in their own marketing. That meant creating brand
awareness for Intel chips in PCs amongst the manufacturers' direct customer
(the dealer) and the end-user (consumers and business purchasers). The first
step was to commit Intel to a fully integrated brand
strategy.
They chose to invest in "ingredient" branding - the creation of
equity as an input brand.
The
most visible example of such branding at the time was NutraSweet, Monsanto's
brand, an artificial sweetener used in 3,000 food and beverage brands. After
only six years after its introduction consumer preference for NutraSweet had
produced annual revenues of nearly US0 million and net income of over US0
million.
9.2. Developing the "Intel
Inside" ingredient branding strategy
In 1991, Intel launched the successful co-op program in which they convinced manufacturers to place the "Intel inside" logo unit in their advertising and other marketing material.
In 1991, Intel launched the successful co-op program in which they convinced manufacturers to place the "Intel inside" logo unit in their advertising and other marketing material.
The
name "Intel Inside" became the first trademark in the electrical
component industry. This campaign focused the entire organization around the
brand and created a highly effective advertising campaign. The Intel Inside
campaign aimed to "educate both the retail sales associates and the
consumers about the value of Intel microprocessors, and to explain to them the
differences between the microprocessors" - without the technical jargon.
Many
consumers were uncertain about the quality and reliability of microprocessors,
and Intel found a way of taking away the mystery of the product, gaining the
confidence of the end consumer that "Intel Inside" represented
quality and reliability. At first this met with skepticism, outside the company
and within it. But that didn't deter Intel. As well as advertising for itself,
it had the bright idea of contributing directly to PC makers' campaigns-as long
as they promoted Intel at the same time.
The
advertising results were stunning. For example, late in 1991, Intel research
indicated that only 24 percent of European PC buyers were familiar with the Intel
Inside® logos. One year later that figure had grown to nearly 80 percent, and
by 1995 it had soared to 94 percent and continues at these high levels today.
Ten
years into the campaign, products that don't boast the presence of Intel inside
are bound to arouse suspicion among consumers. "People will wonder,
"Why don't they use Intel chips? Are they using something cheaper, or not
as good?"
9.3. Intel co-operative marketing
strategy
Intel went to publishers and media organizations and negotiated volume discounts for everyone who participated in the program. Publishers were excited because the program appeared to bring them many new advertisers and helped prove the value of advertising. The computer manufacturers got better rates through the program than they would have buying rate card price. Intel also substantially reduced the total cost for its own advertising while maintaining high exposure for "Intel inside".
Computer manufacturers began co-branding their computers with Intel, the logo gained wider recognition, and consumers perceived it as a benefit in performance.
Intel went to publishers and media organizations and negotiated volume discounts for everyone who participated in the program. Publishers were excited because the program appeared to bring them many new advertisers and helped prove the value of advertising. The computer manufacturers got better rates through the program than they would have buying rate card price. Intel also substantially reduced the total cost for its own advertising while maintaining high exposure for "Intel inside".
Computer manufacturers began co-branding their computers with Intel, the logo gained wider recognition, and consumers perceived it as a benefit in performance.
9.4. Creating a quality standard
With its ingredient branding program, Intel raised awareness for both processors in general and for its own processor brand. Suddenly, consumers and business decision makers alike considered what was on the inside of the computer before making a purchase and Intel provided the only relevant solution.
With its ingredient branding program, Intel raised awareness for both processors in general and for its own processor brand. Suddenly, consumers and business decision makers alike considered what was on the inside of the computer before making a purchase and Intel provided the only relevant solution.
More
importantly, they taught to consumers to "look for the Intel Inside
logo" as an assurance of quality. Intel has been linked to premium brands
like IBM and Compaq -they have created the lasting impression that Intel makes
something worth paying more for.
9.5. Intel Inside - key results of
ingredient branding
To illustrate the value of this campaign in increasing shareholder value, look at the growth in Intel's market capitalisation. In 1991, before the start of the "Intel inside" branding program, Intel's market capitalization was about US billion. In 2003, it is about US5 billion. This growth of shareholder value indicates the value of Intel's ingredient branding strategy. Some other key statistics demonstrating its value include:
To illustrate the value of this campaign in increasing shareholder value, look at the growth in Intel's market capitalisation. In 1991, before the start of the "Intel inside" branding program, Intel's market capitalization was about US billion. In 2003, it is about US5 billion. This growth of shareholder value indicates the value of Intel's ingredient branding strategy. Some other key statistics demonstrating its value include:
In
1992, the first year of "Intel Inside" campaign, worldwide sales rose
63%. Awareness of the Intel logo amongst European PC purchasers grew from 24%
at the start of "Intel Inside" campaign in 1991, to 94% by 1995. In
2001, Intel was listed as the sixth most valuable brand in the world, with a
published brand value estimated of US billion.
Though
AMD and other manufacturers could, and did, produce comparable and even
superior processor chips, that fact is lost on buyers mesmerized by Intel who
controlled 90% of world's share of PC microprocessors by 1998.
9.6. Ingredient branding success factors
The success of the Intel Inside campaign can be attributed to a number of factors including:
The success of the Intel Inside campaign can be attributed to a number of factors including:
F An
established reputation for producing leading edge technology, in particular
microprocessors;
F A
willingness to pro-actively collaborate with channel partners;
the adoption of industry leading marketing strategies, such as the use of plain English packaging and component instructions; and
the adoption of industry leading marketing strategies, such as the use of plain English packaging and component instructions; and
F An
aggressive marketing budget, which maintained substantial campaign spend even
during the US economic recession in 1991. As of 1999, Intel's was investing
around US0 million a year in the Intel Inside campaign, representing 8% of
total sales.
What the analysis shows, and what is instructive to any supplier in an industrial or commercial market, is that ingredient branding can work well. For example, Intel's strategic alliance with IBM continues to be a strong one which is mutually beneficial. Neither partner is heavily dependent on the other, and yet each benefits greatly from the relationship. No brand dilution has occurred on either side. In fact the opposite has happened, each party has benefited dramatically from the partnership.
This
case study demonstrates how a successful, ingredient brand campaign can
transform a commodity product into a valuable consumer brand with a brand value
quantified at US billion.
10-Market Segmentation
Market segmentation has
assumed an important role as products and brands continue to increase quickly.
Market segmentation enables an organization to better satisfy the needs of its
potential customers. The objective of market segmentation is realization of
maximum gains by better utilization of segments.
There
are several important reasons for segmenting markets carefully:
8.1.For better understanding of
customer needs
The needs and taste of customer differ from customer to customer because of age and other reasons. Creation of separate offers for each and every segment/class provides customers with a better solution
The needs and taste of customer differ from customer to customer because of age and other reasons. Creation of separate offers for each and every segment/class provides customers with a better solution
8.2.Better opportunities for
growth
Market segmentation is able to accelerate sales. Customers are encouraged to "trade-up" after being introduced to a particular product with an introductory, lower-priced product.
Market segmentation is able to accelerate sales. Customers are encouraged to "trade-up" after being introduced to a particular product with an introductory, lower-priced product.
8.3.Satisfying customers’ needs
By
marketing products that appeal to customers at different life stages, a
business can retain customers who might otherwise switch to competing products
and brands by satisfying their needs.
8.4.Market
share
According
to IDC, while Intel still enjoys the biggest market share in
both the overall worldwide PC microprocessor market (79.3%) and the mobile PC
microprocessor (84.4%) in the second quarter of 2011, the numbers decreased by
1.5% and 1.9% compared to the first quarter.
Per
Passmark's CPU benchmark, which takes into account individual benchmarking of
their software and each system results are reported with, Intel has retained
70% and more of the active market versus AMD since Q1 2008.
11-Competition
In the 1980s, Intel was among the top
ten sellers of semiconductors (10th in 1987) in the world. In 1991,
Intel became the biggest chip maker by revenue and has held the position ever
since. Other top semiconductor companies include TSMC, Advanced Micro Devices, Samsung, Texas Instruments, Toshiba and STMicroelectronics.
Competitors in PC chip sets include AMD, VIA Technologies, SiS, and Nvidia. Intel's competitors in networking
include Freescale, Infineon, Broadcom, Marvell Technology Group and AMCC, and competitors in flash memory
include Spansion, Samsung, Qimonda, Toshiba, STMicroelectronics,
and Hynix.
The only major competitor in the x86 processor market is Advanced Micro Devices
(AMD), with which Intel has had full cross-licensing agreements since 1976:
each partner can use the other's patented technological innovations without
charge after a certain time. However, the cross-licensing agreement is canceled
in the event of an AMD bankruptcy or takeover. Some smaller competitors such as
VIA and Transmeta produce low-power x86 processors for small factor computers and portable
equipment.
Partnership
with Apple
On June 6, 2005, Steve Jobs, then CEO of Apple, announced that Apple would be
transitioning from its long favored PowerPC architecture to the Intel x86
architecture, because the future PowerPC road map was unable to satisfy Apple's
needs. The first Macintosh computers containing Intel CPUs were
announced on January 10, 2006, and Apple had its entire line of consumer Macs
running on Intel processors by early August 2006. The Apple Xserve server was
updated to Intel Xeon processors from November 2006, and
was offered in a configuration similar to Apple's Mac Pro.
Anti-competitive
allegations
Japan
In 2005, the local Fair Trade Commission found that Intel violated the Japanese Antimonopoly Act. The commission ordered Intel to
eliminate discounts that had discriminated against AMD. To avoid a trial, Intel
agreed to comply with the order.
European Union
In July 2007, the European Commission
accused Intel of anti-competitive practices, mostly against AMD. The allegations, going back to 2003,
include giving preferential prices to computer makers buying most or all of
their chips from Intel, paying computer makers to
delay or cancel the launch of products using AMD chips, and providing chips at
below standard cost to governments and educational institutions. Intel
responded that the allegations were unfounded and instead qualified its market
behavior as consumer-friendly. General counsel Bruce Sewell responded that the
Commission had misunderstood some factual assumptions as to pricing and
manufacturing costs.
In February 2008, Intel stated that
its office in Munich had been raided by European Union regulators. Intel reported that it was
cooperating with investigators. Intel faced a fine of up to 10% of its annual
revenue, if found guilty of stifling competition. AMD subsequently launched a
website promoting these allegations. In June 2008, the EU filed new charges
against Intel. In May 2009, the EU found that Intel had engaged in
anti-competitive practices and subsequently fined Intel €1.06 billion
(US$1.44 billion), a record amount. Intel was found to have paid
companies, including Acer, Dell, HP, Lenovo and NEC, to exclusively use Intel chips in their products, and
therefore harmed other companies including AMD. The European Commission said
that Intel had deliberately acted to keep competitors out of the computer chip
market and in doing so had made a "serious and sustained violation of the
EU's antitrust rules". In addition to the fine, Intel was ordered by the
Commission to immediately cease all illegal practices. Intel has stated that
they will appeal against the Commission's verdict.
South Korea
In
September 2007, South Korean regulators accused Intel of breaking antitrust
law. The investigation began in February 2006, when officials raided Intel's
South Korean offices. The company risked a penalty of up to 3% of its annual
sales, if found guilty. In June 2008, the Fair Trade Commission ordered Intel
to pay a fine of US$25.5 million for taking advantage of its dominant
position to offer incentives to major Korean PC manufacturers on the condition
of not buying products from AMD.
United States
New York started an investigation of
Intel in January 2008 on whether the company violated antitrust laws in pricing
and sales of its microprocessors. In June 2008, the Federal Trade Commission also began an antitrust investigation
of the case. In December 2009 the FTC announced it would initiate an
administrative proceeding against Intel in September 2010.
In November 2009, following a two year
investigation, New York Attorney General Andrew Cuomo sued Intel, accusing them of bribery
and coercion, claiming that Intel bribed computer makers to buy more of their
chips than those of their rivals, and threatened to withdraw these payments if
the computer makers were perceived as working too closely with its competitors.
Intel has denied these claims.
On July 22, 2010, Dell agreed to a settlement with the U.S. Securities and Exchange
Commission (SEC) to pay $100M in penalties
resulting from charges that Dell did not accurately disclose accounting information to investors.
In particular, the SEC charged that from 2002 to 2006, Dell had an agreement
with Intel to receive rebates in exchange for not using chips manufactured by
AMD. These substantial rebates were not disclosed to investors, but were used
to help meet investor expectations regarding the company's financial
performance; the SEC said that in the first quarter of 2007 they amounted to
70% of Dell's operating income. Dell eventually did adopt AMD as a secondary
supplier in 2006, and Intel subsequently stopped their rebates, causing Dell's
financial performance to fall.
12-Conclusion
Intel is a
brand name of many years. It has managed to stay above waters because of its
name and great products. But for how long, now that it has failed to innovate?When Intel tried to deviate from its chain of Pentium named core processors some years back, eyebrows were raised. From Pentium I, II, III and 4, it would have been much easier to carry on with the Pentium tag and call its new processors Pentium Duo or Pentium Quad.
Intel instead named its new line of processors Core 2 Duo! They probably realized the mistake and came back with Pentium Duo Core. But Intel has again gone back to grappling with other brand names like iSeries and Sandy Bridge.
The apparent shift to the Dual Core or Quad Core terms were certainly well intended, but what the big guys had forgotten was that either words could be used by either Intel or AMD and could almost make the processor industry confusing.
Luckily for Intel, the processor industry is driven by only two companies, and save for a few inquisitive geeky users, majority of users buy computers based on the motherboard brand manufacturer i.e. Toshiba, Acer, HP, Dell and Lenovo, and not the processor.
The problem for Intel though is that the imminent shift of computing to mobile means that it has to reinvent itself with a newer brand. The mobile computing industry is awash with ARM processors from ARM Holdings, a British Company. HP, the leading Computer manufacturer that has always favored Intel processors against AMD in the desktop markets its now favoring the latter against the former in the mobile arena. Apple too has opted to develop its own brand of processors for its smartphones and tablets.
Intel Corporation, founded on July 18,
1968, is a portmanteau of Integrated Electronics
(the fact that "Intel" is the term for intelligence information was
also quite suitable). Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors
and other devices related to communications and computing. Founded by
semiconductor pioneers Robert Noyce and Gordon Moore and widely associated with the
executive leadership and vision of Andrew Grove, Intel combines advanced chip design
capability with a leading-edge manufacturing capability. Though Intel was
originally known primarily to engineers and technologists, its "Intel
Inside" advertising campaign of the 1990s made it and its Pentium processor household names.
Intel was an early developer of SRAM and DRAM memory chips, and this represented
the majority of its business until 1981. Although Intel created the world's
first commercial microprocessor chip in 1971, it was not until the success of
the personal computer (PC) that this became its primary business. During the
1990s, Intel invested heavily in new microprocessor designs fostering the rapid
growth of the computer industry.
During this period Intel became the dominant supplier of microprocessors for PCs,
and was known for aggressive and sometimes illegal tactics in defense of its
market position, particularly against Advanced Micro Devices
(AMD), as well as a struggle with Microsoft for control over the direction of the
PC industry. The 2011 rankings of the world's 100 most valuable brands
published by Millward Brown Optimor showed the company's brand value at number
58.
Intel has also begun research in
electrical transmission and generation. Intel has recently introduced a 3-D
transistor that improves performance and energy efficiency. Intel has begun
mass producing this 3-D transistor, named the Tri-Gate transistor, with their
22 nm process, which is currently used in their 3rd generation core
processors initially released on April 29, 2012. In 2011, SpectraWatt Inc., a
solar cell spinoff of Intel.
13-Reference
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