2001 – Technology (To Be Continued)
2001 was a tough year for the technology industry. Most companies took a beating, and many investors wondered if technology was dead. Our answer is a resounding no. The history of technology revolutions is told in cycles of boom, bust and build-out. Despite the recent downturn, we are confident that we will see decades of future growth in Internet-related technologies. Here at Intel, we are staying the course. Guided by our vision of the ongoing digital revolution, we continue to introduce new products and invest for the future so that we will be ready to ride the recovery.
As 2001 progressed, it became increasingly clear that the economy had drifted into a recession with worldwide impact. Just as the high-tech sector had fueled the previously buoyant global economy, it also led the way into the slow business climate. In 2001, the high-tech industry was characterized by high inventory levels and overcapacity of component and system products. Parts of the high-tech infrastructure had been built ahead of anticipated demand, leading many companies to cut back on their computing and communications technology expenditures in 2001. In addition, the dot-com collapse contributed to market declines that affected all areas of the high-tech industry. All this made for a pretty bleak year for Intel financially. Revenues for 2001 were $26.5 billion, down 21% from 2000. Including acquisition-related costs of $2.5 billion, net income for 2001 was $1.3 billion, down 88% from $10.5 billion in 2000. Excluding these costs, net income was $3.6 billion, down 70% from 2000.
Read the full 2001 Annual Report.