INTC » Topics » Mobility Group

These excerpts taken from the INTC 10-K filed Feb 23, 2009.
Mobility Group
 
The Mobility Group offers products including microprocessors and related chipsets designed for the notebook and netbook market segments, wireless connectivity products, and energy-efficient products designed for the MID and ultra-mobile PC market segments. We also offer Intel® Centrino® and Intel® Centrino® 2 processor technologies based on our microprocessors, chipsets, and wireless network connections.
 
Our current mobile microprocessor offerings include the:
     
•     Intel® Coretm2 Extreme mobile processor
  •     Intel® Celeron® Dual-Core processor
•     Intel® Coretm2 Quad mobile processor
  •     Intel® Celeron® M processor
•     Intel® Coretm2 Duo mobile processor
  •     Intel® Celeron® processor
•     Intel® Coretm2 Solo mobile processor
  •     Intel® Atomtm processor


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Table of Contents

We offer mobile microprocessors for notebooks at a variety of price/performance points, from the Intel Core 2 Extreme mobile processor designed for gaming to the Intel Celeron processor designed to provide value, quality, and reliability for basic computing needs. In addition, we offer the Intel Atom processor designed for netbooks, MIDs, and ultra-mobile PCs. We offer these processors in various packaging options, giving our customers flexibility for a wide range of system designs for notebook PCs and other mobile computing devices. The related chipsets for our mobile microprocessor offerings primarily include Mobile Intel® 4 Series Express Chipsets and Mobile Intel® 900 Series Express Chipsets.
 
In 2008, the majority of the revenue in the MG operating segment was from the sale of products that make up our Intel Centrino and Intel Centrino 2 processor technologies. These technologies are designed to provide high performance with improved multitasking, power-saving features to improve battery life, smaller form factors, wireless network connectivity, and improved boot times compared to similar microprocessors that do not incorporate our Intel Centrino and Intel Centrino 2 processor technologies. Intel® Centrino® with vProtm technology and Intel® Centrino® 2 with vProtm technology include the features of Intel Centrino and Intel Centrino 2 processor technologies, respectively, and are designed to provide mobile business PCs with increased security, manageability, and energy-efficient performance.
 
Our new product offerings in 2008 and early 2009 include:
  •  Intel Core 2 Quad mobile processors, designed to handle complex compute and visualization tasks on notebook workstations.
  •  Intel Centrino 2 processor technology and Intel Centrino 2 with vPro technology, designed to deliver higher performance, longer battery life, faster wireless connectivity, and enhanced manageability and security capabilities compared to earlier versions of Intel Centrino processor technology. These platforms are based on new versions of Intel Core 2 Duo mobile processors.
  •  Mobile Intel 4 Series Express Chipsets designed to be used with 45nm Intel Core 2 Duo and Intel Core 2 Quad mobile processors.
  •  Intel Atom processors specifically designed for MIDs and netbooks.
 
Mobility
Group



 



The Mobility Group offers products
including microprocessors and related chipsets designed for the
notebook and netbook market segments, wireless connectivity
products, and energy-efficient products designed for the MID and
ultra-mobile PC market segments. We also offer
Intel®

Centrino®

and
Intel®

Centrino®

2 processor technologies based on our microprocessors, chipsets,
and wireless network connections.



 



Our current mobile microprocessor
offerings include the:































     

•     Intel®

Coretm2

Extreme mobile processor


 

•     Intel®

Celeron®

Dual-Core processor

•     Intel®

Coretm2

Quad mobile processor


 

•     Intel®

Celeron®

M processor

•     Intel®

Coretm2

Duo mobile processor


 

•     Intel®

Celeron®

processor

•     Intel®

Coretm2

Solo mobile processor


 

•     Intel®

Atomtm

processor










5





Table of Contents






We offer mobile microprocessors
for notebooks at a variety of price/performance points, from the
Intel Core 2 Extreme mobile processor designed for gaming to the
Intel Celeron processor designed to provide value, quality, and
reliability for basic computing needs. In addition, we offer the
Intel Atom processor designed for netbooks, MIDs, and
ultra-mobile PCs. We offer these processors in various packaging
options, giving our customers flexibility for a wide range of
system designs for notebook PCs and other mobile computing
devices. The related chipsets for our mobile microprocessor
offerings primarily include Mobile
Intel®

4 Series Express Chipsets and Mobile
Intel®

900 Series Express Chipsets.



 



In 2008, the majority of the
revenue in the MG operating segment was from the sale of
products that make up our Intel Centrino and Intel Centrino 2
processor technologies. These technologies are designed to
provide high performance with improved multitasking,
power-saving features to improve battery life, smaller form
factors, wireless network connectivity, and improved boot times
compared to similar microprocessors that do not incorporate our
Intel Centrino and Intel Centrino 2 processor technologies.
Intel®

Centrino®

with
vProtm


technology and
Intel®

Centrino®

2 with
vProtm


technology include the features of Intel Centrino and Intel
Centrino 2 processor technologies, respectively, and are
designed to provide mobile business PCs with increased security,
manageability, and energy-efficient performance.



 



Our new product offerings in 2008
and early 2009 include:

















































  • 


Intel Core 2 Quad mobile
processors, designed to handle complex compute and visualization
tasks on notebook workstations.

  • 


Intel Centrino 2 processor
technology and Intel Centrino 2 with vPro technology, designed
to deliver higher performance, longer battery life, faster
wireless connectivity, and enhanced manageability and security
capabilities compared to earlier versions of Intel Centrino
processor technology. These platforms are based on new versions
of Intel Core 2 Duo mobile processors.

  • 


Mobile Intel 4 Series Express
Chipsets designed to be used with 45nm Intel Core 2 Duo and
Intel Core 2 Quad mobile processors.

  • 


Intel Atom processors specifically
designed for MIDs and netbooks.



 




Mobility Group
 
The revenue and operating income for the Mobility Group (MG) for the three years ended December 27, 2008 were as follows:
 
                         
(In Millions)
  2008     2007     2006  
Microprocessor revenue
  $ 11,439     $ 10,660     $ 9,212  
Chipset and other revenue
    4,209       4,021       3,097  
                         
Net revenue
  $ 15,648     $ 14,681     $ 12,309  
Operating income
  $ 5,199     $ 5,611     $ 4,602  
 
Net revenue for the MG operating segment increased by $967 million, or 7%, in 2008 compared to 2007. The increase in microprocessor revenue was due to significantly higher microprocessor unit sales, which were partially offset by significantly lower microprocessor average selling prices. A portion of the increase in microprocessor unit sales, as well as a portion of the decrease in average selling prices, was due to the ramp of Intel Atom processors. The increase in chipset and other revenue was primarily due to significantly higher chipset unit sales, which were partially offset by lower revenue from the sale of cellular baseband products. We are winding down the sales from the manufacturing agreement entered into as part of the divestiture of the cellular baseband business.
 
Operating income decreased by $412 million, or 7%, in 2008 compared to 2007. The decrease in operating income was primarily due to higher operating expenses, which were partially offset by lower microprocessor unit costs.
 
For 2007, net revenue for the MG operating segment increased by $2.4 billion, or 19%, compared to 2006. The increase in microprocessor revenue was due to a significant increase in unit sales, partially offset by significantly lower average selling prices. The increase in chipset and other revenue was due to higher unit sales of chipsets and, to a lesser extent, higher revenue from sales of cellular baseband products. In the fourth quarter of 2006, we sold certain assets of the business line that included application and cellular baseband processors used in handheld devices; however, in 2007 we continued to manufacture and sell those products as part of a manufacturing and transition services agreement.
 
Operating income increased by $1.0 billion, or 22%, in 2007 compared to 2006. The increase in operating income was primarily due to higher revenue. Lower microprocessor unit costs were more than offset by approximately $330 million of higher start-up costs, primarily related to our 45nm process technology. Lower unit costs on wireless connectivity and cellular baseband products were offset by higher chipset unit costs. Operating expenses were higher in 2007 compared to 2006; however, operating expenses as a percentage of revenue decreased in 2007 compared to 2006.


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Table of Contents

 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 
Mobility
Group



 



The revenue and operating income
for the Mobility Group (MG) for the three years ended
December 27, 2008 were as follows:



 











































































































                         


(In Millions)


 

2008

 

 

2007

 

 

2006

 


Microprocessor revenue


 

$

11,439

 

 

$

10,660

 

 

$

9,212

 


Chipset and other revenue


 

 

4,209

 

 

 

4,021

 

 

 

3,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net revenue


 

$

15,648

 

 

$

14,681

 

 

$

12,309

 


Operating income


 

$

5,199

 

 

$

5,611

 

 

$

4,602

 







 



Net revenue for the MG operating
segment increased by $967 million, or 7%, in 2008 compared
to 2007. The increase in microprocessor revenue was due to
significantly higher microprocessor unit sales, which were
partially offset by significantly lower microprocessor average
selling prices. A portion of the increase in microprocessor unit
sales, as well as a portion of the decrease in average selling
prices, was due to the ramp of Intel Atom processors. The
increase in chipset and other revenue was primarily due to
significantly higher chipset unit sales, which were partially
offset by lower revenue from the sale of cellular baseband
products. We are winding down the sales from the manufacturing
agreement entered into as part of the divestiture of the
cellular baseband business.



 



Operating income decreased by
$412 million, or 7%, in 2008 compared to 2007. The decrease
in operating income was primarily due to higher operating
expenses, which were partially offset by lower microprocessor
unit costs.



 



For 2007, net revenue for the MG
operating segment increased by $2.4 billion, or 19%,
compared to 2006. The increase in microprocessor revenue was due
to a significant increase in unit sales, partially offset by
significantly lower average selling prices. The increase in
chipset and other revenue was due to higher unit sales of
chipsets and, to a lesser extent, higher revenue from sales of
cellular baseband products. In the fourth quarter of 2006, we
sold certain assets of the business line that included
application and cellular baseband processors used in handheld
devices; however, in 2007 we continued to manufacture and sell
those products as part of a manufacturing and transition
services agreement.



 



Operating income increased by
$1.0 billion, or 22%, in 2007 compared to 2006. The
increase in operating income was primarily due to higher
revenue. Lower microprocessor unit costs were more than offset
by approximately $330 million of higher
start-up
costs, primarily related to our 45nm process technology. Lower
unit costs on wireless connectivity and cellular baseband
products were offset by higher chipset unit costs. Operating
expenses were higher in 2007 compared to 2006; however,
operating expenses as a percentage of revenue decreased in 2007
compared to 2006.






40





Table of Contents





 




MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (Continued)


 




These excerpts taken from the INTC 10-K filed Feb 20, 2008.
Mobility Group
 
The revenue and operating income for the Mobility Group (MG) for the three years ended December 29, 2007 were as follows:
 
                   
(In Millions)
  2007   2006   2005
Microprocessor revenue
  $ 10,660   $ 9,212   $ 8,704
Chipset and other revenue
    4,021     3,097     2,427
                   
Net revenue
  $  14,681   $  12,309   $  11,131
Operating income
  $ 5,606   $ 4,595   $ 5,335
 
Net revenue for the MG operating segment increased by $2.4 billion, or 19%, in 2007 compared to 2006. Microprocessor revenue increased by $1.4 billion, or 16%, in 2007 compared to 2006, while chipsets and other revenue increased by $924 million, or 30%, in 2007 compared to 2006. The increase in microprocessor revenue was due to a significant increase in unit sales, partially offset by significantly lower average selling prices. The increase in chipset and other revenue was due to higher unit sales of chipsets, and to a lesser extent, higher revenue from sales of cellular baseband products. In the fourth quarter of 2006, we sold certain assets of the business line that included application and cellular baseband processors used in handheld devices; however, in 2007 we continued to manufacture and sell these products as part of a manufacturing and transition services agreement.
 
Operating income increased by $1.0 billion, or 22%, in 2007 compared to 2006. The increase in operating income was primarily due to higher revenue. Lower microprocessor unit costs were more than offset by approximately $330 million of higher start-up costs, primarily related to our 45nm process technology. Lower unit costs on wireless connectivity and cellular baseband products were offset by higher chipset unit costs. Operating expenses were higher in 2007 compared to 2006; however, operating expenses as a percentage of revenue decreased in 2007 compared to 2006.
 
For 2006, net revenue for the MG operating segment increased by $1.2 billion, or 11%, compared to 2005. Microprocessor revenue increased by $508 million, or 6%, in 2006 compared to 2005, while chipsets and other revenue increased by $670 million, or 28%, in 2006 compared to 2005. The increase in microprocessor revenue was due to higher unit sales, largely offset by lower average selling prices. The majority of the increase in chipset and other revenue was due to higher revenue from sales of chipsets, and to a lesser extent, higher revenue from sales of wireless connectivity products. Sales of these products increased primarily due to increased sales of our Intel Centrino processor technologies.
 
Operating income decreased by $740 million, or 14%, in 2006 compared to 2005. The decline was primarily caused by higher operating expenses, due in part to the recognition of share-based compensation. Results for 2005 did not include share-based compensation. The effects of higher revenue were offset by higher unit costs for microprocessors. Start-up costs were approximately $170 million lower in 2006 compared to 2005.


34


Table of Contents

 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION (Continued)
 
Mobility
Group



 



The revenue and operating income for the Mobility Group (MG) for
the three years ended December 29, 2007 were as follows:


 






















































































                   


(In Millions)


 

2007

 

2006

 

2005


Microprocessor revenue


 

$

10,660

 

$

9,212

 

$

8,704


Chipset and other revenue


 

 

4,021

 

 

3,097

 

 

2,427

 

 

 

 

 

 

 

 

 

 


Net revenue


 

$

 14,681

 

$

 12,309

 

$

 11,131


Operating income


 

$

5,606

 

$

4,595

 

$

5,335







 



Net revenue for the MG operating segment increased by
$2.4 billion, or 19%, in 2007 compared to 2006.
Microprocessor revenue increased by $1.4 billion, or 16%,
in 2007 compared to 2006, while chipsets and other revenue
increased by $924 million, or 30%, in 2007 compared to
2006. The increase in microprocessor revenue was due to a
significant increase in unit sales, partially offset by
significantly lower average selling prices. The increase in
chipset and other revenue was due to higher unit sales of
chipsets, and to a lesser extent, higher revenue from sales of
cellular baseband products. In the fourth quarter of 2006, we
sold certain assets of the business line that included
application and cellular baseband processors used in handheld
devices; however, in 2007 we continued to manufacture and sell
these products as part of a manufacturing and transition
services agreement.


 



Operating income increased by $1.0 billion, or 22%, in 2007
compared to 2006. The increase in operating income was primarily
due to higher revenue. Lower microprocessor unit costs were more
than offset by approximately $330 million of higher
start-up
costs, primarily related to our 45nm process technology. Lower
unit costs on wireless connectivity and cellular baseband
products were offset by higher chipset unit costs. Operating
expenses were higher in 2007 compared to 2006; however,
operating expenses as a percentage of revenue decreased in 2007
compared to 2006.


 



For 2006, net revenue for the MG operating segment increased by
$1.2 billion, or 11%, compared to 2005. Microprocessor
revenue increased by $508 million, or 6%, in 2006 compared
to 2005, while chipsets and other revenue increased by
$670 million, or 28%, in 2006 compared to 2005. The
increase in microprocessor revenue was due to higher unit sales,
largely offset by lower average selling prices. The majority of
the increase in chipset and other revenue was due to higher
revenue from sales of chipsets, and to a lesser extent, higher
revenue from sales of wireless connectivity products. Sales of
these products increased primarily due to increased sales of our
Intel Centrino processor technologies.


 



Operating income decreased by $740 million, or 14%, in 2006
compared to 2005. The decline was primarily caused by higher
operating expenses, due in part to the recognition of
share-based compensation. Results for 2005 did not include
share-based compensation. The effects of higher revenue were
offset by higher unit costs for microprocessors.
Start-up
costs were approximately $170 million lower in 2006
compared to 2005.





34





Table of Contents





 




MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION (Continued)


 




This excerpt taken from the INTC 10-K filed Feb 26, 2007.
Mobility Group
 
The revenue and operating income for the Mobility Group (MG) for the three years ended December 30, 2006 were as follows:
 
                         
(In Millions)
  2006     2005     2004  
 
Microprocessor revenue
  $ 9,212     $ 8,704     $ 5,667  
Chipset and other revenue
    3,097       2,427       1,314  
                         
Net revenue
  $ 12,309     $ 11,131     $ 6,981  
Operating income
  $ 4,993     $ 5,334     $ 2,832  
 
Net revenue for the MG operating segment increased by $1.2 billion, or 11%, in 2006 compared to 2005. Microprocessor revenue increased by $508 million, or 6%, in 2006 compared to 2005, while chipsets and other revenue increased by $670 million, or 28%, in 2006 compared to 2005. The increase in microprocessor revenue was due to higher unit sales, largely offset by lower average selling prices. The majority of the increase in chipset and other revenue was due to higher revenue from sales of chipsets, and to a lesser extent, higher revenue from sales of wireless connectivity products. Sales of these products increased primarily due to the Intel Centrino Duo mobile technology platform. Revenue from application and cellular baseband processors is included in “chipset and other revenue” above. In the fourth quarter of 2006, we divested certain assets of the business line that included application and cellular baseband processors used in handheld devices. See “Note 14: Acquisitions and Divestitures” in Part II, Item 8 of this Form 10-K.
 
Operating income decreased by $341 million, or 6%, in 2006 compared to 2005. The decline was primarily caused by higher operating expenses. The effects of higher revenue were offset by higher unit costs for microprocessors. Start-up costs were approximately $170 million lower in 2006 compared to 2005.
 
For 2005, revenue for the MG operating segment increased by $4.15 billion, or 59%, compared to 2004. This increase was primarily due to significantly higher revenue from sales of microprocessors, which increased $3.0 billion, or 54%, in 2005 compared to 2004, reflecting the continued growth in the notebook market segment. Increased use of microprocessors designed specifically for mobile platforms in notebook computers also contributed to the higher revenue. The higher revenue from sales of microprocessors was due to significantly higher unit sales, partially offset by lower average selling prices, primarily due to higher unit sales of the Celeron M processor, our value mobile processor. Revenue from sales of chipsets and wireless connectivity products also increased significantly in 2005 compared to 2004, primarily due to the success of Intel Centrino mobile technology.
 
Operating income increased to $5.3 billion in 2005 from $2.8 billion in 2004. The significant increase in operating income was primarily due to higher revenue. In addition, operating expenses for the MG operating segment did not increase as fast as revenue, and microprocessor unit costs were lower. These increases in operating income were partially offset by approximately $170 million of higher start-up costs in 2005, primarily related to our 65-nanometer process technology.
 
This excerpt taken from the INTC 10-Q filed Aug 8, 2005.

Mobility Group

 

The revenue and operating income for MG for the first half of 2005 and 2004 were as follows:

 

(In Millions)


     YTD 2005  

     YTD 2004  

Microprocessor revenue

   $ 3,973    $ 2,386

Flash memory revenue

     1,106      1,004

Chipset and other revenue

     1,082      538
    

  

Net revenue

   $ 6,161    $ 3,928

Operating income

   $ 2,239    $ 993

 

MG net revenue increased by $2.2 billion, or 57%, in the first half of 2005 compared to the first half of 2004. This increase was primarily due to significantly higher revenue from sale of microprocessors, which increased $1.6 billion, or 67% in the first half of 2005 compared to the first half of 2004, reflecting the continued growth in the notebook market segment, as well as the increased reliance on microprocessors designed specifically for mobile platforms in notebook computers. The higher revenue from sales of microprocessors was due to significantly higher unit sales, partially offset by lower average selling prices due to significant growth in Celeron M microprocessors. Revenue from sales of chipsets and wireless connectivity products also increased significantly in Q2 2005 compared to Q2 2004, primarily due to the success of Intel Centrino mobile technology. Revenue from application processors, which are based on our Intel XScale technology, is included in other revenue above. Unit sales of flash memory products were higher, partially offset by lower average selling prices.

 

26


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

 

Operating income increased $1.2 billion, or 125%, in the first half of 2005 compared to the first half of 2004. The significant increase in operating income was primarily due to higher revenue from sales of microprocessors and chipsets. In addition, operating expenses for MG did not increase as fast as revenue, which also contributed to the improvement in operating income. These increases in operating income were partially offset by approximately $200 million of higher start-up costs in the first half of 2005, primarily related to our 65-nanometer process technology.

 

This excerpt taken from the INTC 10-Q filed May 11, 2005.

Mobility Group

 

The revenue and operating income for the Mobility Group operating segment for the first quarter of 2005 and 2004 were as follows:

 

(In Millions)              


   Q1 2005

   Q1 2004

Microprocessor revenue

   $ 1,917    $ 1,162

Flash memory revenue

     578      417

Chipset and other revenue

     516      246
    

  

Net revenue

   $ 3,011    $ 1,825

Operating income

   $ 1,104    $ 405

 

Net revenue for the Mobility Group operating segment increased by $1.2 billion, or 65%, in Q1 2005 compared to Q1 2004. This increase was primarily due to significantly higher revenue from sales of microprocessors, which increased $755 million, or 65%, in Q1 2005 compared to Q1 2004, reflecting the continued growth in the notebook market segment. The higher revenue from sales of microprocessors was due to significantly higher unit sales, partially offset by lower average selling prices. Revenue from sales of chipsets also increased significantly in Q1 2005 compared to Q1 2004. Revenue from sales of wireless connectivity products for our Intel Centrino mobile technology and revenue from sales of application processors were also higher. Revenue from applications processors, which are based on our Intel XScale technology, is included in other revenue above. Unit sales of flash memory products were higher, with flash memory revenue increasing 39% in Q1 2005 compared to Q1 2004.

 

Operating income increased to $1.1 billion in Q1 2005, from $405 million in Q1 2004. The significant increase in operating income was primarily due to higher revenue from sales of microprocessors. In addition, operating expenses for the Mobility Group did not increase as fast as revenue, which also contributed to the improvement in operating income. The increase in operating income was partially offset by higher start-up costs in Q1 2005, primarily related to our 65-nanometer process technology.

 

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