Intel 2010 Annual Report Download - page 42

Table of Contents
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)
Strategy by Major Market Segment
The strategy for our PC Client Group operating segment is to offer products that are incorporated into notebook, netbook,
tablet, and desktop computers for consumers and businesses.
The strategy for our Data Center Group operating segment is to offer products that provide leading performance, energy
efficiency, and virtualization technology for server, workstation, and storage platforms. We are also increasing our focus on
products designed for high-performance and mission-critical computing, cloud computing services, and emerging markets. In
addition, we offer wired connectivity devices that are incorporated into products that make up the infrastructure for the
Internet.
The strategies for our other Intel architecture operating segments include:
Critical Accounting Estimates
The methods, estimates, and judgments that we use in applying our accounting policies have a significant impact on the results
that we report in our consolidated financial statements. Some of our accounting policies require us to make difficult and
subjective judgments, often as a result of the need to make estimates regarding matters that are inherently uncertain. Our most
critical accounting estimates include:
Below, we discuss these policies further, as well as the estimates and judgments involved.
27
• Our strategy for the notebook computing market segment 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 notebook products designed to offer technologies that provide
increased manageability and security. In addition, we are focusing on providing seamless connectivity within our
platforms through the use and development of multi-communication technologies such as WiMAX, WiFi, and 4G
LTE.
• Our strategy for the netbook computing market segment is to offer products that enable customization and affordable
Internet-focused devices with small form factors. We also are focusing on offering performance capabilities and
features that allow for enhanced end-user experiences such as seamless connectivity, improved synchronization of
content between devices, and enhanced media usage.
• Our strategy for the tablet computing market segment is to offer Intel Atom processor-based solutions for multiple
operating systems that are designed to provide enhanced performance and seamless connectivity to the Internet and
other devices. Tablets provide a unique form factor for multiple operating systems and a unique user interface,
including multi
-
touch features.
• Our strategy for the desktop computing market segment is to offer products that provide increased manageability,
security, and energy-efficient performance while 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.
• driving Intel architecture as a solution for embedded applications by delivering long life-cycle support, software and
architectural scalability, and platform integration;
• continuing to develop and offer products that enable handheld devices to deliver digital content and the Internet to
users in new ways; and
• offering products and solutions 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, including
the TV.
• the valuation of non-marketable equity investments and the determination of other-than-temporary
impairments, which
impact gains (losses) on equity method investments, net, or gains (losses) on other equity investments, net when we
record impairments;
• the assessment of recoverability of long-lived assets, which impacts gross margin or operating expenses when we
record asset impairments or accelerate their depreciation;
• the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax
positions), which impact our provision for taxes;
•
the valuation of inventory, which impacts gross margin; and
• the recognition and measurement of loss contingencies, which impact gross margin or operating expenses when we
recognize a loss contingency, revise the estimate for a loss contingency, or record an asset impairment.