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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."

Paul Otellini

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.

Otellini announced his retirement in November 2012. Earlier this month, Brian Krzanich was named the new CEO. 

Source: The Atlantic

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RE: being a fab plant?
By captainBOB on 5/17/2013 9:30:55 PM , Rating: 2
While ARM may not be directly competing with Intel, its various SoCs that are in every smartphone and the majority of tablets are. Every ARM smartphone and tablet is a smartphone and tablet that isn't Intel.

Also, ARM isn't a chip maker. So how is it a rival?? ARM ISA is a CPU design that is designed for low power, lower throughput devices... Intel's Atom competes in this space, but the rest of tech world.. Aka the real $$$ in the business Intel and ARM are not rivals.. Horrible writing.

This shortsighted thinking is what kills companies, just because x86 desktop and server CPUs are where the money is at currently, doesn't mean that it will stay that way forever. The PC market is saturated and in decline, Intel isn't finding growth in this sector anymore. Enterprise has a lot of money, but grows at a slower pace as well, the demand for data centers and such isn't enough to sustain Intel at its current size.

Compare that to smartphones and especially tablets, both of which are emerging markets and are still growing at a rapid pace, and will continue to do so for some time, Intel definitely has to get in this game before its crowded out. Fortunately if the numbers for Silvermont are true, Atom in the next year will blow ARM SoCs out of the water in terms of performance to power.

ARM is definitely a rival to Intel, indirectly yes, but a rival still.

"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan

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