Intel reported that its IoT Group had generated record revenue in Q3 2017 during its earnings presentation held last week.
The group’s quarterly revenue climbed to $849 million, a 23% increase year-over-year (YoY), indicating that the segment is becoming more mature and established within Intel, and therefore becoming an increasingly stable and growing source of revenue that continues to outpace most of the firm’s other business areas.
Two key factors are driving the IoT Group’s solid revenue growth:
- The growth of Intel’s IoT services: Hardware platforms that companies buy to enable the IoT, which include components such as the microprocessor, chipset, stand-alone SoC, or multi-chip package, make up the bulk of the IoT Group’s revenue, accounting for $680 million of the $849 million total. But the remainder, primarily services the company provides alongside its hardware offerings, have grown much faster than the platforms, more than doubling YoY from $84 million in Q3 2016 to $169 million in 2017.
- Strength and growing prominence in key segments: Intel cited a few areas, including retail, industrial, and video, as spaces in which its solutions were contributing to revenue. Retail is particularly strong — as an example, Intel developed solutions for smart retail projects that companies can use to automate and track goods within a store to make companies more efficient. As these solutions mature and see greater adoption, more retailers adopt them, which drives Intel’s revenue.
Broadly, Intel is looking to foster ongoing growth in the IoT as a means of driving its own revenue. The company continues to innovate as a means of further propelling its IoT Group. Recently, Intel created its new Secure Device Onboarding technology to make it easier for companies to install IoT devices and add them to networks and platforms, whether they used Intel hardware or not. As IoT solutions continue to scale using this and similar protocols from other companies like ARM, Intel will be in a position to continue to generate increasing revenue from the IoT and potentially compensate for stagnating or even declining revenue from its traditional PC business.
The Internet of Things (IoT) is disrupting businesses, governments, and consumers and transforming how they interact with the world. Companies are going to spend almost $5 trillion on the IoT in the next five years — and the proliferation of connected devices and massive increase in data has started an analytical revolution.
To gain insight into this emerging trend, BI Intelligence conducted an exclusive Global IoT Executive Survey on the impact of the IoT on companies around the world. The study included over 500 respondents from a wide array of industries, including manufacturing, technology, and finance, with significant numbers of C-suite and director-level respondents.
Peter Newman, research analyst for BI Intelligence, Business Insider’s premium research service, has conducted an exclusive study with in-depth research into the field and created a detailed report on the IoT that:
- Provides a primer on the basics of the IoT ecosystem
- Offers forecasts for the IoT moving forward and highlights areas of interest in the coming years
- Looks at who is and is not adopting the IoT, and why
- Highlights drivers and challenges facing companies implementing IoT solutions
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