Intel CorporationCompany ProfilePublication Date: 4 Nov 2010www.datamonitor.comAsia PacificAmericasEurope, Middle East and power-saving features to improve battery life, wireless network connectivity, boot times, and to enable smaller form factors.The Intel CoreTM i5 vPro processor and the Intel Core i7 vPro processor are designed to provide business notebook PCs with increased security, manageability, upgradeability, and energy-efficient performance.Similarly, Intel provides desktop microprocessors at a variety of price and performance points, from the high-end Intel Core i7 processor Extreme Edition to the Intel Celeron processor and Intel Atom processor, designed for low-power and affordable internet-focused devices. Also, the company offers processor technologies based on its microprocessors, chipsets, and motherboard products that are optimized for the desktop market segment. For business desktop PCs, Intel provides Core 2 Duo processor with vPro technology, the Core 2 Quad processor with vPro technology, the Core i5 vPro processor, and the Core i7 vPro processor.In addition, microprocessors continued to be the main source of revenue for the company. For instance, the revenue from the sale of microprocessors within the PCCG segment represented 57%, 57%, and 55% of its total revenue in FY2009, 2008, and 2007, respectively. Also, the revenue from the sale of microprocessors within the DCG segment represented 15%, 14%, and 13% of the companys total revenue in FY2009, 2008 and 2007, respectively.Broad portfolio of microprocessors enables the company to effectively cater to the diverse needs of its customers and also helps it in maintaining top place in the global microprocessor market.WeaknessesCustomer concentrationIntel is dependent on few customers for significant proportion of its revenues.The companys top two largest customers, Hewlett-Packard (HP) and Dell, accounted for approximately 38% of its revenues in FY2009 and 2008. HP contributed 21% and 20% of Intels total revenues in FY2009Intel CorporationPage 8 DatamonitorIntel Corporation SWOT Analysisand 2008, respectively. Similarly, in FY2009 and 2008, Dell accounted for approximately 17% and 18% of the companys total revenues, respectively.High dependence on a few customers reduces the bargaining power of the company and increases its business risk.OpportunitiesProposed acquisitions to broaden the portfolioIntel entered into agreements to acquire different companies in recent times in a move which signifies the companys approach to expand beyond its traditional PC and server markets. In August 2010, Intel entered into a definitive agreement to acquire McAfee for approximately $7.7 billion.The deal is expected to close after McAfees shareholder approval, regulatory clearances and other customary conditions specified in the agreement. After the completion of the acquisition, McAfee will operate as a wholly-owned subsidiary of Intel, reporting into its software and services group.The acquisition allows Intel to address the issue of security, which continues to be a growing problem for desktops, laptops, and smartphones.McAfee has a suite of software-related security solutions, including end-point and networking products and services that helps in protecting internet-connected devices and networks from malicious content, phony requests and unsecured transactions and communications. McAfees products include McAfee Total Protection, McAfee Antivirus, McAfee Internet Security, McAfee Firewall, McAfee IPS as well as an expanding line of products targeting mobile devices such as smartphones.The acquisition of McAfee enables Intel to offer hardware combined with security making its platforms to run around any chip supporting an operating system and antivirus and anti-spam software in addition.In addition, in August 2010, Intel signed an agreement to purchase Infineons Wireless Solutions Business (WLS) in a cash transaction valued at approximately $1.4 billion.The acquisition expands Intels current Wi-Fi and 4G WiMAX offerings to include Infineons 3G capabilities and supports Intels plans to accelerate LTE.The acquired technology will be used in Intel Core processor-based laptops, and a range of Intel Atom processor-based devices, including smartphones, netbooks, tablets and embedded computers.This acquisition further strengthens Intels internet connectivity strategy and enables it offer a portfolio of products that spans across a range of wireless options from Wi-Fi and 3G, to WiMAX and LTE.Proposed acquisitions will broaden Intels portfolio of offerings and enhances its competitive position in the market.Growth of telehealth and home health monitoring marketIntel CorporationPage 9 DatamonitorIntel Corporation SWOT AnalysisThe market for telehealth and home health monitoring is expected to grow in the coming years. According to the industry sources, the market for telehealth and home health monitoring in the US and Europe is forecast to grow