Former Intel CEO Regrets Passing Up on iPhone Gravy Train
May 17, 2013 11:46 AM
comment(s) - last by
He said he should have listened to his gut
Former Intel CEO and longtime employee Paul Otellini
had his last day yesterday, and after 40 years of employment with the chipmaker, his only major regret was
missing out on the iPhone
Otellini, who became Intel CEO in 2005, said he was disappointed that he passed up the opportunity for Intel to make chips for the iPhone back before the device's 2007 release. It was his one truly regretful moment during his long career with Intel, and the one time he decided not to go with his gut instinct.
"We ended up not winning it or passing on it, depending on how you want to view it," said Otellini. "And the world would have been a lot different if we'd done it. The thing you have to remember is that this was before the iPhone was introduced and no one knew what the iPhone would do... At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost. I couldn't see it. It wasn't one of these things you can make up on volume. And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought."
Apple's early iPhones ended up having processors made by Intel's rival, ARM. ARM certainly jumped on the mobile processor bandwagon quickly, making the crucial transition from traditional PCs to the exploding mobile sector.
"The lesson I took away from that was, while we like to speak with data around here, so many times in my career I've ended up making decisions with my gut, and I should have followed my gut," said Otellini. "My gut told me to say yes."
While Samsung (Apple's main hardware rival in the mobile industry) has been
manufacturing most of Apple's smartphone and tablet processors
for years, the two are looking to split after nasty patent wars and increased competition have broke out between the two.
At the Consumer Electronics Show (CES) earlier this year, Samsung's President of LSI business Stephen Woo said that it's crucial for the South Korean electronics maker to focus on alternatives to Apple when it comes to the chip sector.
This being the case,
Apple has reportedly been in talks with Intel
again to manufacture its chips for iPhones and iPads. This could lessen Apple's reliance on Samsung and help Intel leap further into the mobile processing sector.
Otellini joined Intel in 1974. He was appointed to senior vice president and general manager of sales and marketing from 1994-1996 and then executive vice president of sales and marketing from 1996-1998. He became executive vice president and general manager of the Intel Architecture Group from 1998-2002.
announced his retirement in November 2012
. Earlier this month, Brian Krzanich was named the new CEO.
This article is over a month old, voting and posting comments is disabled
RE: being a fab plant?
5/17/2013 12:29:56 PM
maybe what hes thinking is, if they took / got the deal they would have set the standard, so its ok if the standard is low as they would have had what 2 years to design the chip? no one knew what to expect so even if it was a terrible processor i don't think people would have noticed. The main thing here is that ARM gets no traction / money. So while intel lose money and make a (assuming) bad product. They stop their competitors and establish themselves as a big player in the market
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
Intel Appoints Brian Krzanich as New CEO
May 2, 2013, 9:49 AM
Report: Intel in Talks With Apple to Manufacturer iPhone, iPad Processors
March 7, 2013, 2:11 PM
Paul Otellini to Retire, Even as Intel Faces Critical Test
November 19, 2012, 11:46 AM
Samsung Now Making Apple's Smartphone/Tablet Chips in Texas
December 16, 2011, 1:01 PM
eBay to Spin Off PayPal Business Next Year
September 30, 2014, 7:28 AM
HP Adds $99 Windows Tablet, $199 Windows Notebook to Stream Family
September 29, 2014, 7:17 PM
Following Quirky Passport, BlackBerry Aims to Release One Unconventional Device Per Year
September 29, 2014, 6:45 PM
New Optical Cloak is so Beautifully Simple You Can Build Them at Home
September 29, 2014, 5:10 PM
Samsung Galaxy Note 4 Owners Report Gaps Between Screen, Body
September 29, 2014, 3:40 PM
GoPro Introduces Three New "Hero" Cameras
September 29, 2014, 10:08 AM
Most Popular Articles
Appalling Negligence: Decade-Old Windows XPe Holes Led to Home Depot Hack
September 8, 2014, 8:58 PM
iBend: Reports Grow of Razor-Thin iPhone 6+ Folding Like Origami in Your Pocket
September 23, 2014, 6:08 PM
New AT&T Mobile Share Value "Double Data" Promotion Lasts Through October
September 28, 2014, 8:32 AM
Update: Apple Releases iOS 8.0.2 Update to Make Up for Botched 8.0.1 Release
September 25, 2014, 8:19 PM
FBI Outraged That Apple, Google are Adopting Digital "Locks" to Protect Users
September 26, 2014, 1:00 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information