Intel’s had a rough time in recent years: a resurgent AMD, loss of major clients (most notably Apple), 14nm supply issues, a broken 10nm process, failure to set up shop in the mobile market, the decision to sell the modem business and major administration shakeups, among others. However, in light of the company’s strong performance in the client and server segments, Intel has been able to mostly mask these ongoing struggles. It’s only till you check Team Blue’s valuation as a company over the years that you realize how much its fortunes have plummeted. Let’s have a look at Intel’s position in the Brand Finance rankings over the years:
Back in 2007, Intel held the #13 rank right behind HP, IBM and Microsoft, with Google following shortly behind at #15. Fast forward to 2020, and you’ll see that Team Blue has dropped from #13 to all the way to #55:
Intel’s valuation has just marginally increased from $25K million to $27.5K million in the last 13 years. Granted, most PC-centric firms have seen significant drops in the last decade or so, but Intel’s fortunes have been one of the worst. Meanwhile, smartphone giants like Google, Apple, Samsung, and Huawei have surged to the top ten during the same time. The most remarkable is Amazon’s rise to power. Jeff Bezos managed to transform an online bookstore into the most powerful firm of modern times in a span of just ten years.
Looking back at Intel’s fall, back in 2012, the company was doing rather well till its “Tick-Tock” release cadence was still in existence. It managed to claw its way back to the top 20 by surging 6 places, from #26 to #20 the same year.
However, since then it has been in free fall dropping by 5-10 places every couple of years. Team Blue’s 10nm struggles started around the same time, and the failure to establish a foothold in the mobile chipmaking sector only made it worse. In recent years, although Intel has managed to stabilize its position by investing in the memory, storage and Data Center markets, it’s valuation as a company has continued to drop. Most recently, the company’s rank slid 5 places, dropping from #55 in 2019 to #55 this year (2020). Current market trends indicate that this pattern will continue, at least for another few years or so.