Intel no longer stands at the top of the mountain as the world’s top chipmaker. Samsung recently overcame Intel in the market, which may come as a surprise to those who only know Samsung through its consumer electronics products. A multi-billion dollar company such as Samsung involves itself in many different business endeavors. The development and manufacturing of chips would be among those endeavors.
Intel’s position at the top spot ran a full 25 years. Few could envision a world in which Intel isn’t at the top position in the industry. Sales figures tell the tale, though. The annual returns of Samsung clearly topped the figures Intel has posted.
That isn’t to infer Intel’s annual sales are poor. The company moves a massive amount of chip products. Annual sales figures reveal $62.8 billion in revenue for 2017. Samsung, however, clearly beat that number with $69 billion in revenue.
Intel surely could bounce back with boosted revenue in 2018 and 2019, but the odds of this may not be too great. Intel has dealt with some less-than-desirable publicity recently. That doesn’t exactly help with increasing revenue. Samsung’s massive revenue figures aren’t solely the result of Intel’s woes. Samsung couldn’t generate nearly $70 billion in revenue unless the product it produces delivers on all expectations.
Samsung has been able to make massively increased strides in the chip world thanks to its heavy investments in mobile phones. Smartphones are reliant on memory chips for operations. Samsung put the necessary research into creating chips for the mobile phone market. Intel remained focused on computers, which turned out to be a hugely problematic. Millions of people around the world rely on smartphones exclusively for computer applications and operations. Since they aren’t buying desktops or laptops, they aren’t purchasing any accompany Intel chips.
Intel won’t be completely out of the chipmaker game, but the company has a lot of ground to cover to reach Samsung’s position in the market. While matching Samsung’s figures isn’t impossible, doing so may be a very difficult task to accomplish.