The growth of Intel

Intel made profits of USD 9,400 in the first quarter
MBI - Argentina – 2005 (English)

During the first quarter of 2005, the major worldwide chip producer, Intel Corporation, earned USD 9, 4 billion, what accounts for a 17% increase if compared to the same period of the previous year but a 2% decrease if compared to the last quarter of 2004.

In the first quarter, the company made profits of USD 0, 34 per share, that is 31% more than that of the first quarter in 2004. Thus, they earned a USD 2,2 billion net income.

Intel’s first fiscal quarter included an additional working week because the year 2005 is a fifty- three- month fiscal year for the company. The results achieved in the first quarter of the previous year included an extra because of a legal resolution that diminished the earnings per share by 1,7 cents.

During this quarter, Intel announced a large reorganization taking place at the company in order to align the main product groups with the company’s strategy in such a way so that they can develop and offer technological platforms based on Intel’s components.

A research on IT consumers

Price and trust are the main factors when choosing a place where to purchase.

Where do consumers prefer to make their computer technology purchases? What is it that makes a consumer purchase in one place and not in another? In order to answer these questions, Marco carried out ¨The First Research on the Consumer ´s Profile on Computer Technology ¨ among 400 persons aged 18 to 65.

34% of those polled stated that prices are the main reason when choosing a store where to purchase. Then, 24% said that they are guided by trust. The third reason -stated by 17%- had to do with the brands the places work with. An 8% referred to sales (including the payment plans of up to 24 installments), being these one of the most recurrent factors when referring to a place where to buy as well. Those polled also mentioned the specific discounts made when paying with certain banks ´ credit cards, or when purchasing on a particular day.

When choosing the place where to but, they also take into consideration the following aspects: good customer service, variety of products and the possibility of drawing up a wedding list.

As we classified the Chains in Electrical Appliances stores, Computer stores, Entertainment stores and Supermarkets or Hypermarkets ( taking into account that all these places sell computer products) , we came across marked differences within the consumers motivation.

Not only in Electrical Appliances and Products Stores but also in those Computer and Entertainment stores, the consumer’s profile is similar to each segment’s inside. That is to say, those who purchase technology at any Entertainment store branch, for example, have a similar education level, similar motivations and, when choosing where to buy, they prioritize the same aspects. Thus, the main difference is not that which exists within one Entertainment Store and another; it has to do with why they buy computer devices in that type of store and not in an Electrical Appliance Store.

If we were to analyze each segment, we would find the following characteristics:

• COSTUMER’S BEHAVIOR AT AN ENTERTAINMENT STORE.
  Those who purchase merchandise in these types of chains, that are not only known for selling technology but also for selling CDs and books, prioritize trust ( 30%), the brands the store works with ( 28%) and, in the last place, prices ( 18%).
• COSTUMERS’ BEHAVIOUR AT ELECTRICAL APPLIANCES STORES.
  In this particular case, 36 % of consumers prioritize prices, 22% prioritize trust and, in the last place with 18%, rank the brands the store works with. Plus, consumers profit from the special discounts they are given when paying with certain banks ´ cards.
• COSTUMERS´ BEHAVIOUR AT COMPUTING STORES.
  32% of consumers consider trust to be the most important factor when buying technology in these stores. In second place, both with 21%, rank the prices and the brands these stores work with.
• COSTIUMERS ´ BEHAVIOUR AT SUPER AND HYPERMARKETS.
  This case appears to be different to those previously analyzed. At each super and hypermarket inside, consumers´ motivations are not similar.

Those who buy in a supermarket and not in another have a different professional knowledge level and their relation with technology ( measured by the use they give to internet) varies as well.
Only 25% of those who go to the supermarket to buy their home purchases, consider these type of chains to be a possible place where to but technological products. At the same time, most of this 25 % buys this type of product at the supermarket for their prices, sales and the different types of payment. They don’t consider trust, variety of brands and personalized customer service important factors.
This reveals that, although supermarkets and hypermarkets are trying to compete as technology sellers, consumers do not consider them to be a possible place where to purchase these kind of products. Which are the places they are likely to choose when buying computer technology?
When those polled were asked about the place where they are used to purchasing computer technology, 34% mentioned an electrical appliance store, whereas 32% recur to computer stores. 21% stated that they don ´t have a regular place where they to buy. 6% purchases their computer products at any of the big supermarket chains, 4 % does it at Entertainment Stores, 3% buys in the internet and , finally, less than 1% buys in wholesalers.

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