Intel 2006 Annual Report Download - page 38

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Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
For the communications infrastructure, we deliver products that are basic building blocks for modular communications
platforms. These products include advanced programmable network processors, based on Intel XScale technology, used to
manage and direct data moving across the Internet and corporate networks. The agreement to sell certain assets of the
communications and application processor business and license rights to Intel XScale technology does not impact the
communication infrastructure product offerings within DEG. See “Note 14: Acquisitions and Divestitures”
in Part II, Item 8 of
this Form 10-K.
We also offer embedded microprocessors that can be used for modular communications platform applications.
Mobility Group
The Mobility Group designs and delivers platforms for notebook PCs and other mobile devices. The Mobility Group’s
products currently include microprocessors and related chipsets designed for the notebook market segment and wireless
connectivity products.
Our strategy for notebook PCs is to deliver platforms designed to optimize performance, battery life, form factor, and wireless
connectivity. For high-end mobility platforms, we offer the Intel Core 2 Duo, the Intel Core Duo, the Intel Core Solo, and the
Intel Pentium M processors. For lower price-point mobile platforms, we offer the Intel Celeron M and the Mobile Intel
Celeron processors. We also offer Intel
®
Express Chipsets, with and without integrated graphics capability, which are
designed for the notebook market segment. Additionally, we offer wireless connectivity solutions based on the Institute of
Electrical and Electronics Engineers (IEEE) 802.11 industry standard as well the IEEE 802.16 industry standard, commonly
known as WiMAX. The primary platforms offered by the Mobility Group are the Intel Centrino Duo mobile technology
platform and the Intel Centrino mobile technology platform. The Intel Centrino mobile technology consists of a mobile
processor and a mobile chipset as well as a wireless network connection that together are designed to improve performance,
battery life, form factor, and wireless connectivity. The Intel Centrino Duo mobile technology platform, launched in January
2006, expands on the capabilities of Intel Centrino by increasing multitasking performance and includes power-
saving features
to further improve battery life, and contains a flexible network connection.
We are also developing energy-efficient platforms for the ultra-mobile market segment that are designed primarily for mobile
consumption of digital content and Internet access.
Flash Memory Group
The strategy for the Flash Memory Group is to provide advanced flash memory products for cellular phones, memory cards,
digital audio players, and embedded form factors. We offer a broad range of memory densities, leading-edge packaging
technology, and high-
performance functionality. In support of our strategy, we offer NOR flash memory products such as Intel
StrataFlash wireless memory for advanced mobile phone designs. In addition to product offerings for cellular customers, we
offer NOR flash memory products that meet the needs of other market segments, such as the embedded market segment. The
embedded market segment includes set-top boxes, networking products, DVD players, DSL and cable modems, and other
devices. With the formation of IMFT, a NAND flash memory manufacturing company, with Micron in January 2006, we have
been selling products manufactured by IMFT that are currently being used in memory cards, digital audio players, and cellular
phones.
We offer a variety of stacked memory products, including products based on our NOR flash, as well as our NOR flash plus
RAM and/or NAND flash, which in some instances we purchase from third-party vendors. Stacking of memory products
refers to packaging several memory chips together.
In the second quarter of 2006, we announced changes to the organizational structure within the Flash Memory Group
operating segment, designed to consolidate NOR manufacturing, research and development, and product support into the Flash
Memory Group. These organizational changes were designed to give the Flash Memory Group more flexibility by giving it
greater control over its own cost structure and allowing for better management of product development and manufacturing.
These changes do not change the revenue or costs attributed to the Flash Memory Group operating segment.
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