The big news which took the tech world by shock was retirement of Paul Otellini, Chief Executive Intel. The company has huge challenge to face as there is a major shift happening from computer to the mobile world.
Otellini, 62, took the decision of retirement three years before he would have reached the mandatory age of retirement. The company has begun the search of the successor immediately.
Otellini joined Intel in May 2005 and he gave a major boost to the company’s revenue which rose to 57 % by 2011. During his stint with Intel, Otellini settled an antitrust suit for $1.25 billion, won over Apple to use intel chips in its computers and laid off 20,000 workers.
However, the share price also fell during Otellini’s time. It happened due to the sudden explosion of smartphones and tablet market where Intel has minimal presence.
The right successor to Otellini, said AndrewBSE -3.86 % Bryant, Intel’s chairman, would preserve Intel’s famously engineering-driven culture but turn it into an organization that is better able to anticipate rapidly changing consumer tastes.
“We don’t see the PC category going away, but we see that the market has changed,” Bryant said. “We need to figure out what the market wants.”
We couldn’t reach Otellini’. In a statement issued by Intel, he said that “after almost four decades with the company and eight years as CEO, it’s time to move on and transfer Intel’s helm to a new generation of leadership.”
The report which came from Intel last month stated that the net income fell by 14.3 percent which was attributed to lack of demands of PC’s. The research firm IDC said worldwide PC shipments fell 8.6 percent to 87.8 million units in the third quarter.
What has added to the troubles of Intel is the poor reception of Microsoft’s Windows 8 operating system, which Intel hoped would lift sales. While they are both are wounded with the PC plunge, Intel and Microsoft may be the best of a troubled bunch.