Intel 2008 Annual Report Download - page 35

Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
The trend of mobile microprocessor unit growth outpacing the growth in desktop microprocessor units has continued, and
shipments of our mobile microprocessors exceeded our desktop microprocessors for the first time in the second quarter of
2008. We believe that the demand for mobile microprocessors will result in the increased development of products with form
factors and uses that require low-power microprocessors.
Our silicon and manufacturing technology leadership allows us to develop low-power microprocessors for new uses and form
factors. We believe that these low-power microprocessors give us the ability to extend Intel architecture and drive growth in
new market segments, including a growing number of products that require processors specifically designed for embedded
solutions, MIDs, consumer electronics devices, nettops, and netbooks. We believe that the common elements for products in
these new market segments are low power consumption and the ability to access the Internet. We also offer, and are
continuing to develop, SoC products that integrate core processing functionality with specific components, such as graphics,
audio, and video, onto a single chip to form a purpose-built solution. This integration reduces cost, power consumption, and
size.
Strategy by Operating Segment
We completed a reorganization in the second quarter of 2008 that transferred the revenue and costs associated with a portion
of the Digital Home Group’s consumer PC components business to the Digital Enterprise Group. The Digital Home Group
now focuses on the consumer electronics components business. The strategy by operating segment presented below is based
on the new organizational structure.
The strategy for our Digital Enterprise Group (DEG) is to offer computing and communications products for businesses,
service providers, and consumers. DEG products are incorporated into desktop and nettop computers, enterprise computer
servers and workstations, and products that make up the infrastructure for the Internet. We also offer products for embedded
designs, such as industrial equipment, point-of-sale systems, telecommunications, panel PCs, in-vehicle
information/entertainment systems, and medical equipment. Our strategy for the desktop computing market segment is to offer
products that provide increased manageability, security, and energy-efficient performance while at the same time lowering
total cost of ownership for businesses. For consumers in the desktop computing market segment, we also focus on the design
of components for high-end enthusiast PCs and mainstream PCs with rich audio and video capabilities. Our strategy for the
nettop computing market segment is to offer products that enable affordable, Internet-focused devices with small form factors.
Our strategy for the enterprise computing market segment is to offer products that provide energy-efficient performance and
virtualization technology for server, workstation, and storage platforms. We are also increasing our focus on products designed
for high-performance computing, data centers, and blade server systems. Our strategy for the embedded computing market
segment is to drive Intel architecture as an embedded solution by delivering long life cycle support, architectural scalability,
and platform integration.
The strategy for our Mobility Group is to offer notebook PC products designed to improve performance, battery life, and
wireless connectivity, as well as to allow for the design of smaller, lighter, and thinner form factors. We are also increasing our
focus on products designed for the business and consumer environments by offering technologies that provide increased
manageability and security, and we continue to invest in the build-out of WiMAX. We also offer, and are continuing to
develop, products that enable mobile devices to deliver digital content and the Internet to users in new ways, including
products for MIDs and netbooks.
The strategy for our NAND Solutions Group is to offer advanced NAND flash memory products, focusing on system-level
solutions for Intel architecture platforms such as solid-state drives. Additionally, we offer NAND products used in memory
cards. In support of our strategy to provide advanced flash memory products, we continue to focus on the development of
innovative products designed to address the needs of customers for reliable, non-volatile, low-cost, high-density memory.
The strategy for our Digital Home Group is to offer products and solutions, including SoC designs, for use in consumer
electronics devices designed to access and share Internet, broadcast, optical media, and personal content through a variety of
linked digital devices within the home. We are focusing on the design of components for consumer electronics devices, such
as digital TVs, high-definition media players, and set-top boxes, which receive, decode, and convert incoming data signals.
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