Latin America keeps pushing sales for Intel

Friday, July 22, 2011

Intel's Q2 financial results have again been positive for the company, with growing markets like Latin America as a motor.

The consumer sector keeps expanding, led by first time buyers and those who are renewing or upgrading their existing equipment. The second generation of Core processors have been selling like never before and the adoption of cloud computing in the region is also a driver for the company.

To find out more about these results and Latin America's importance for Intel, BNamericas spoke to Steve Long, general director for Latin America.

BNamericas: Intel recently published its second quarter financial results. What was Latin America's contribution?

Long: In general terms, I want to say that again it has been a record quarter. Intel's revenues for the quarter reached US$13.0bn; that's very good news. Now here in Latin America, our sales grow faster than those of the company globally, so if Intel grew 22% year-on -year, we went over that number.

BNamericas: Which sectors in Latin America are the main drivers of Intel's positive numbers?

Long: The consumer area is still the strongest sector for Intel in the region. The reason behind this is because those who already bought and have had their first experience with the product are moving on to buying their second product from us. But we also have the first buyers - a very strong group - who are acquiring our products for the first time. I can say that both groups are leading the sector. This is a trend that we see mainly in growth markets like Latin America.

BNamericas: And which products are leading the sales?

Long: The second generation of Core products are driving sales. Actually, this second generation of the Intel Core is one of the strongest in history, especially in Latin America, with results over the initial projections. With these products, it's the first time we have had such big growth, and we see both clients and channels that are selling the product having great results.

BNamericas: What would be the reason behind this sales increase?

Long: We think the product is different from previous ones because it's the best processor we have produced. It offers a completely unique visual experience, and that for the consumer is something distinctive.

BNamericas: And another trend in the market is cloud computing. How does this service benefit Intel?

Long: Well, according to our financial results, the market remains very strong, with demand from cloud-based customers leading the way. The cloud segment is up 50% in the first half of 2011 versus the first half of last year. Worldwide, we've seen an increase in data centers, and this has to do with cloud computing. The increase in the number of data centers and cloud computing is a direct benefit for our company.

BNamericas: How does the business model work?

Long: Mainly by channels. That's why we launched again this year the technology provider program to ensure that all channel partners in Latin America are receiving proper training to offer the products and all the benefits that the program includes.

BNamericas: What's the role of SMEs in terms of sales for Intel?

Long: The channel partners are offering the products to this group because there's a difference with multinationals and big companies in terms of services. That's why we're also changing the dimension of our business partner programs, so that we can offer training to the sales sector. I think SMEs are leading as customers and are an important niche.

BNamericas: Which is, in your opinion, the main trend or main differentiator of the region?

Long: It has to be education. The region is developing projects in this sector in most countries around the region - such as Argentina, Venezuela, Colombia and Peru, but also in Central America, with a huge number of projects. This is a unique phenomenon of the region that has to do with the first experience with a PC. Education is a very special segment, where governments are getting involved and investing in it. And I see this not only as a benefit in terms of my business but also as a social one.

About Steve Long

Since joining Intel in 2000, Steve Long has served in various international positions at the company, including in the United States, Brazil, Mexico and China. His previous role was as Americas sales director. Since January 2011, he has been general director for Latin America, responsible for all aspects of Intel's business in the region.

Long holds a bachelor's degree from Tulane University and an MBA from Texas A&M University. He has worked for almost 13 years in the technology sector.