Print 10 comment(s) - last by MadMan007.. on Nov 19 at 9:51 PM

Intel loses chief at an inopportune time as it faces stiff competition with ARM

Intel Corp. (INTC) surprised the electronics industry Monday morning when it announced that its chief executive of eight years, Paul Otellini, would be stepping down.  Mr. Otellini, 62, had been with Intel for 40 years -- two thirds of his life, roughly.

The news was not entirely unexpected; Intel does reportedly have a mandatory retirement age of 65.

Still, many expected Mr. Otellini to guide Intel through the pivotal next few years as his firm looks to make headway into the mobile industry.  The next few years will also be critical as Intel looks to stave off fierce competition from rival ARM Holdings plc. (LON:ARM) and its army of partner chipmakers in the server and traditional PC markets.

Now it has to accomplish those goals without its veteran leader.

Paul Otellini
Paul Otellini [Image Source: Intel]

The departure is not the first major loss for Intel, though it is the highest profile.  Previously Intel's Anand Chandraskher -- the man who architected the highly successful Centrino wireless project, and was leading Intel's Atom chip mobile efforts -- bailed in March 2011.  Today Mr. Chanraskher is chief managing officer (CMO) at Qualcomm, Inc. (QCOM) one of Intel's biggest ARM-architecture rivals.

Intel has promoted software head Renee James, chief operating officer and manufacturing head Biran Krzanich, and chief financial offers and corporate strategy lead Stacy Smith to "executive vice president", adding additional responsibilites to try to ease the transition.

Needless to say, this departure -- while not entirely unexpected -- comes slightly early and at a rather inopportune time for Intel.

Source: Intel

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By Ammohunt on 11/19/2012 1:52:58 PM , Rating: 3
Let fresh blood lead intel into the future.

RE: Good
By Master Kenobi on 11/19/2012 2:20:12 PM , Rating: 3
I dunno, this guy has done an outstanding job as CEO of Intel. He will be a tough act to follow.

RE: Good
By JKflipflop98 on 11/19/2012 2:32:03 PM , Rating: 3
He's had his ups and downs. It was better when a scientist was the big boss. Paul pinches a lot of pennies to appease the shareholders.

By MadMan007 on 11/19/2012 12:47:48 PM , Rating: 2
Why no mention that he would remain 'available as an advisor'? That's an important point, it sounds to me like maybe he didn't want to continue the day-to-day CEO role but still wants to be involved in a meaningful way.

RE: advisor
By Motoman on 11/19/2012 12:58:50 PM , Rating: 2

Every outgoing CEO is "available as an advisor" - that doesn't mean jack squat, and is a phrase used only as patronage to the outgoing executive.

RE: advisor
By Vertigo2000 on 11/19/2012 1:19:50 PM , Rating: 2
Over-react much?

RE: advisor
By MadMan007 on 11/19/12, Rating: 0
What about Alexander?
By Zingam on 11/19/2012 1:28:50 PM , Rating: 2
Alexander the Great died more than two millenia ago. Did wars stop? Did nobody try to conquer the world after his death?

Not to sound weird or anything...
By Samus on 11/19/2012 1:50:24 PM , Rating: 2
I hope I look that good when I'm 62. Just sayin...dude works out.

Not until May
By bwmccann on 11/19/2012 4:05:08 PM , Rating: 2
From the sounds of this it would seem he is retiring today. In fact he still has 6 months left. I think it will be interesting to see if they put an engineer in charge again instead of a finance guy.

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