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The above graph represents Intel advertising expenses by year, starting from fiscal 1993 to the recently completed year. For the last few years, Intel has been constantly cutting its advertising expenses. In fiscal 2019 the company spent $832 million, a decline of 30% YoY as compared to $1.2 billion Intel spent in advertising in the previous year.
It was fiscal 1997 when Intel’s advertising expenses crossed $1 billion mark as the company spent a whopping $1.2 billion to advertise its products and services. Within the next three year, only the advertising expenses doubled and the company was spending to a tune of $2 billion in fiscal 2000.
With the increasing competition with AMD and growing success of Intel processing chip, Intel decided to raise the bar to an all-time high in 2005. Intel’ advertising expenses peaked $2.6 billion in fiscal 2005, which was equal to nearly 6% of the company’s total revenue in that year.
In the last 10 years, however, the company has actively reduced its advertising expenses. The company has bought down its advertising expenses to less than half, from a whopping $2.1 billion in fiscal 2011 to just $0.83 billion in fiscal 2019. The change was primarily driven by the emergency of digital advertising and the increasing popularity of online social channels. The targeted advertising and lower cost offered by digital platforms have got a significant impact on the company’s overall advertisement expenses.
Intel Corporation (NASDAQ: INTC) is a leading manufacturer of semiconductor computer circuits. Intel was founded on July 18, 1968, by Robert Noyce and Gordon Moore, with initial funding of $2.5 million. Interestingly, in just 3 years, exactly on October 13, 1971, Intel went for an initial public offering (IPO), raising $6.8 million ($23.50 per share). Intel and its compatible chips are now found in every desktop and laptop except Apple products.
The company’s three largest customers, Dell Inc., Lenovo Group Limited and HP Inc., accounted for nearly 40% of the total revenue as of 2018.
Intel is ranked #43 in the list of 2019 Fortune 500 companies, up from #46 in 2018.
Intel has always been open to having new mergers and acquiring new projects, the latest being OmniTek (2019) which deals with FPGA video acceleration, and most popular being McAfee (2010).
Intel recently announced its withdrawal from 5G smartphone modem business. However, the company will continue to meet current customer commitments for its existing 4G smartphone modem product line.