What Intel achieved in Q4 after revealing growth strategy

Intel client computing Q4 2017
Intel revealed its fourth quarter result for 2017 indicating the technology firm’s success from its strategy in supplying computing solutions to data-driven economy.

Intel revenue in Q4 2017 at $17.1 billion (+4.1 percent) was Intel’s ninth consecutive quarter of growth.

Brian Krzanich, Intel CEO, said: “The investments we’ve made in areas like memory, programmable solutions, communications and autonomous driving are starting to pay off and expand Intel’s growth opportunity. In 2018, our highest priorities will be executing to our data-centric strategy.”
Intel data center group revenue Q4 2017Santa Clara, California-based Intel has generated $8.95 billion (–1.9 percent) or 52.5 percent of total revenue from Client Computing Group (CCG). CCG revenue of Intel fell due to decline of 2 percent in ASP for desktops and 5 percent for notebooks. Intel achieved better operating margin — from 30.6 percent to 34.3 percent — for CCG due to manufacturing efficiencies and legacy discontinuations.

Main achievements:

# Data Center Group (DCG), Internet of Things Group (IOTG) and Programmable Solutions Group (PSG) all achieved record quarterly revenue

# Client Computing Group (CCG) shipped a record volume of Intel Core i7 processors

Data Center Group revenue rose 19.6 percent to $5.9 billion, accounting for 32.7 percent of total Intel revenue. Data center platform unit volumes increased 10 percent, while ASPs grew 8 percent. Intel’s DCG growth was fuelled by 35 percent increase in cloud segment and 11 percent increase in enterprise segment.

Revenue from Internet of Things (IoT) grew 21.1 percent to $879 million with operating margin of 29.6 percent from 25.1 percent.
Intel spending Q4 2017
“The margin turnaround is a result of Intel proving its solutions in its retail, video and in-vehicle infotainment verticals, which leads to generating more profitable transactions from customers. IoT is a key growth area for Intel, and it does not want to fall behind like it did with its mobile and wearables businesses,” Daniel Callahan, analyst at TBR.

Intel’s Non-Volatile Memory Solutions Group revenue increased 8.9 percent to $889 million with operating margin of 3.5 percent fuelled by demand for data center SSD solutions.

Programmable Solutions Group revenue increased 35.2 percent to $568 million thanks to demand in data center, auto, embedded and advanced products categories as well as last-time buys of legacy products.

The company is also advancing efforts to compete and win in artificial intelligence with the Intel Nervana Neural Network Processor, customer momentum for its Intel Movidius vision processing unit (VPU), and customer adoption of Intel Xeon Scalable processors

Mobileye, Intel’s autonomous driving business, added 30 ADAS customer designs wins as well as design wins for advanced L2+ and L3 autonomous systems with 11 automakers.

Baburajan K

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