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1998 – Building A Connected World

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1998 – Building A Connected World

To our stakeholders

We faced extraordinary business conditions in 1998. Competition in the value PC market segment, inventory corrections among some of our large customers in the first half of the year, and an economic slow-down in some parts of the world all took their toll. As a consequence, our financial results in the first half of the year were not as strong as we would have liked. Revenues for the year were up 5%, with net income down 13% to $6.1 billion. At the same time, beneath these choppy waters, we were undergoing a fundamental sea change in how we see our business. The Internet is transforming the nature of the computing industry. As a leading provider of key computing and communications building blocks, we play a central role in this revolution. We are confident that our actions have helped us ride out the turbulence of 1998, and we are excited about our strategic plans to help drive the development of an increasingly connected computing world.

New products for all levels.

• Our Intel® Celeron® microprocessor, introduced in April and followed in August by an enhanced version, offers entry-level PC buyers good value and reliable Intel technology. By the end of 1998, it was the second-highest volume PC microprocessor in the world, second only to the Pentium® II microprocessor.
• Our Pentium® II microprocessor remains the heart of our business. Ideal for the performance desktop and entry-level servers and workstations, this powerful processor makes up the majority of units we sold worldwide in 1998.
• The powerhouse Pentium® II Xeon™ microprocessor, introduced in August, is specifically designed for mid- and high-range servers and workstations. Manufacturers can benefit by designing systems to harness the power of multiple high-performance processors. Demand for servers and workstations is increasing, and within both of these segments, sales of systems based on Intel® architecture are growing much faster than the overall segment.

Read the full 1998 Intel Annual Report.