Intel IoT Group's Revenue Hits Record, Renewing Interest in the Sector

USA News Group News Commentary

LOS ANGELES, November 16, 2017 — (PRNewswire) —

USA News Group - The mass adoption of the Internet of Things (IoT) has been a slower process than most expected, but signs of strength in this sector continue to emerge, even as Intel's IoT Group posts record earnings.

A number of companies developing IoT technology show similar promise including Qualcomm Incorporated (NASDAQ: QCOM), Texas Instruments Incorporated (NASDAQ: TXN), Impinj, Inc. (NASDAQ: PI), and Edgewater Wireless Systems Inc. (TSX-V: YFI).

The IoT is the growing world of interconnected commercial, industrial, household and personal devices.

Intel reported that its IoT Group had generated record revenue in Q3 2017 during its earnings presentation.

Market watchers are mindful of this strong performance and looking for this trend to translate across other IoT technologies.

Several companies that contribute core technologies, such as microchips used to power IoT devices, are the frontrunners. These include Qualcomm Incorporated (NASDAQ: QCOM), a maker of digital communications products, Texas Instruments Incorporated (NASDAQ: TXN), which has an impressive legacy for chip technology, and Impinj, Inc. (NASDAQ: PI), which offers real-time information about an item's unique identity, location, and authenticity.

Another area of technology that the IoT will rely upon even more heavily as it proliferates is Wi-Fi and connectivity. Edgewater Wireless Systems Inc. (TSX.V: YFI) is an innovator in this area that is gaining attention for its patented, new Wi-Fi3™ technology aimed at improving capacity and connectivity in hi-density applications.

The positive performance of these IoT contributors is creating renewed investor interest in IoT adoption and could signal a strong year ahead.


Intel's IoT Group is a prominent pace setter in the space.

The group's quarterly revenue climbed to $849 million in Q3, a 23% increase year-over-year (YoY). The growth is an indication that the segment is becoming more mature and established within Intel, and is becoming an increasingly stable and growing source of revenue that is outpacing most of the company's other successful areas.

There are two key factors driving the IoT Group's strong revenue growth:

  • The growth of Intel's IoT services - These include hardware platforms that companies buy to enable the IoT, such as the microprocessor, chipset, stand-alone SoC, or multi-chip packages. They account for $680 million of the $849 million total IoT Group's revenue.
  • Strength and dominance in key segments - Intel showcased several areas, including retail, industrial, and video, as spaces in which its solutions were major revenue contributors. In particular, retail is a strong segment with products such as Intel developed solutions for smart retail projects that companies can use to automate and track goods within a store, making them more efficient.

Innovation is key as a means of further propelling its IoT Group.

Intel recently created its new Secure Device Onboarding technology to make it easier for companies to install IoT devices and add them to networks and platforms. The platform does not require Intel hardware.

As IoT solutions continue to scale, using this tech as well as similar protocols from other companies, Intel will be positioned to generate increasing revenue from the IoT.


The leading research firm Gartner reports that there are some 3.8 billion connected things right now, but by 2020 the firm estimates there will be 25 billion smart devices. These devices will be the backbone and frontline of the IoT.

Not surprisingly, for every device there will also exist a connection to other devices and the systems that control them. This makes connectivity a very large part of the IoT.

Chipmakers are projecting that they will produce 20 billion Wi-Fi chips by 2020, with a global market expected to reach $33.6 billion by that point.

That is massive growth feeding the needs of a sleeping giant.


Businesses will be the top adopter of IoT solutions. That's mostly because businesses see three ways the IoT can improve their bottom line by 1) lowering operating costs; 2) increasing productivity; and 3) expanding to new markets or developing new product offerings.

Edgewater Wireless Systems is a perfect example of an IoT innovator providing opportunity while transforming technology.

Edgewater designs and patents new solutions for Wi-Fi and connectivity in high-density applications. These are places like airports, convention centers, stadiums and public spaces where people need broad access to Wi-Fi.

The company has spent about $60 million on its new technology that is meant to solve the three main issues that impact Wi-Fi performance - interference, capacity and density.

Edgewater is introducing its patented WiFi3™ technology in various products including Aera™ brand connection point devices. Their system uses multiple radio channels in a single chip to increase connectivity by as much as 40% compared to current Wi-Fi.

Edgewater Wireless Systems is already winning the kudos of peers and taking its technology global. The emerging company expects to be impacted by IoT growth, while it helps to redefine Wi-Fi's role.


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 a revolution.

This next phase revolution is disrupting businesses, governments, and consumers and transforming how they interact with the world. Ultimately, the IoT is about improving lives and the ways we all interact.

While it's still a relatively new company compared to the legacy chip and IoT tech manufacturers, Edgewater Wireless is delivering outstanding technology. Its WiFi3™ systems are changing the capacity for public access and opening new opportunities. Edgewater and other innovators in the space can really carve out a lucrative spot at this point.

The IoT is advancing steadily. The continued YoY record revenue growth of companies like Intel's IoT Group should serve as an indicator. Areas to watch for heightened growth are microchip developers, Wi-Fi and connectivity and device technology such as sensors and wearables.


Qualcomm Incorporated (NASDAQ: QCOM)

QUALCOMM Incorporated develops, designs, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, the United States, and internationally. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access (OFDMA), and other technologies for use in voice and data communications, networking, application processing, multimedia, and global positioning system products.

Texas Instruments Incorporated (NASDAQ: TXN)

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. The company operates through two segments, Analog and Embedded Processing. The Analog segment offers high volume analog and logic products for automotive safety devices, touch screen controllers, low voltage motor drivers, and integrated motor controllers; and power products to manage power requirements using battery management solutions, portable power components, power supply controls, and point-of-load products. The company markets and sells its semiconductor products through direct sales and distributors, as well as online. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Impinj, Inc. (NASDAQ: PI)

Impinj, Inc. operates a platform that enables wireless connectivity to everyday items by delivering each items' unique identity, location, and authenticity to business and consumer applications. Its platform delivers Item Intelligence, which include real-time information about an item's unique identity, location, and authenticity through RAIN radio-frequency identification technology. Impinj, Inc. was founded in 2000 and is headquartered in Seattle, Washington .

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