Intel Corp.

--1968-2003
Harvard Business School Case #703-427
Case Software #XLS-314

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Exhibit 1 Intel's Financial Results (employees in thousands; all others in $ millions)

Total
Net Cost of Net Capital Asset Market
Year Revenues Sales Employees R&D Income Additions s Capitalization
1974 135 68 3.1 11 20 13 75 –
1975 137 67 4.6 15 16 11 103 –
1976 226 117 7.3 21 25 32 157 –
1977 283 144 8.1 28 32 45 221 –
1978 399 196 10.9 41 44 104 357 663
1979 661 313 14.3 67 78 97 500 1,449
1980 855 399 15.9 96 97 156 767 1,763
1981 789 458 16.8 117 27 157 872 1,012
1982 900 542 19.4 131 30 138 1,056 1,755
1983 1,122 624 21.5 142 116 145 1,680 4,592
1984 1,629 883 25.4 180 198 388 2,029 3,192
1985 1,365 943 21.3 195 2 236 2,153 3,364
1986 1,265 861 18.2 228 -173 155 1,977 2,478
1987 1,907 1,044 19.2 260 248 302 2,499 4,536
1988 2,875 1,506 20.8 318 453 477 3,550 4,344
1989 3,127 1,721 21.7 365 391 422 3,994 6,290
1990 3,921 1,930 23.9 517 650 680 5,376 7,400
1991 4,779 2,316 24.5 618 819 948 6,292 9,996
1992 5,844 2,557 25.8 780 1,067 1,228 8,089 18,392
1993 8,782 3,252 29.5 970 2,295 1,933 11,344 26,334
1994 11,521 5,576 32.6 1,111 2,288 2,441 13,816 26,432
1995 16,202 7,811 41.6 1,296 3,566 3,550 17,504 48,439
1996 20,847 9,164 48.5 1,808 5,157 3,024 23,735 109,193
1997 25,070 9,945 63.7 2,347 6,945 4,501 28,880 114,718
1998 26,273 12,088 64.5 2,509 6,068 4,032 31,471 197,644
1999 29,389 11,836 70.2 3,111 7,314 3,403 43,849 275,006
2000 33,726 12,650 86.1 3,897 10,535 6,674 47,945 371,213
2001 26,539 13,487 83.4 3,796 3,661 7,309 44,395 218,824

Source: Compiled by casewriters from company and analysts' reports.

Exhibit 8 PC and Microprocessor Market Forecast

1998 1999 2000 2001 2002 2003 99-03

CAGR
Worldwide PC
Value of Shipments ($M) 170,152 182,966 194,737 208,465 222,726 239,009 6.9
Worldwide PC
Microprocessor Revenue ($M) 19,457 23,104 25,550 26,307 25,899 24,470 1.6
Worldwide CPU
Avg. silicon content $ value 211.03 206.01 196.02 178.38 153.98 127.37 –11.3

Source: Worldwide PC Forecast, Update, 1998–2003; Worldwide PC Semiconductor Market Forecast, International Data
Corporation.