Credit Suisse Technology Conference has become a place where the former Intel Stacy Smith CFO made in the status of executive vice president of the corporation in charge of the production, sales and operations.
Smith began with a discussion of corporate profits rules and the value of its research and development costs. In the ten years that he has been Chief Financial Officer, Intel profit rate remained in the range of 60-65%. According to him, this proves the company's ability to produce "great products" that could not have been done without the constant infusion of funds into the development.
In the development of client solutions and Intel processors for smartphones is now ready to invest less. We hasten to reassure products, these savings will not touch gamers and enthusiasts. Will invest in the segment of virtual reality technology. Ultra-thin convertible notebook and also remain a priority of financing items. Furthermore, Intel is ready to invest in the development of products for the emerging economies, where expensive device simply can not afford most of the people. Smith blurry called this initiative "Innovation at the level of the cost." He believes that the PC market is close to saturation, and require significant incentives in the form of new features to bring it back on line growth. However, this time has not come yet, and most of the PC market has learned to slowly grow old.
By the way, in the business of manufacture of memory profit margins are traditionally lower than in the production of CPUs for the server application. Intel is well aware, and even notes that now the production of memory brings only loss, although it is a temporary phenomenon. However, in future Intel expects to outperform its competitors in terms of profitability indicators in the production of memory. Especially because now this business is profitable for Intel's server segment.