Intel CEO Otellini: 10 Things That Will Result From His Leaving

 
 
By Don Reisinger  |  Posted 2012-11-20 Email Print this article Print
 
 
 
 
 
 
 


5. An eye on sales and marketing again

Intel made its name in the processor market by delivering products that had better marketing than those of rival Advanced Micro Devices. There was a time, after all, when AMD products were the only processors enthusiasts would buy because they knew that the chips were superior to Intel's. The average consumer, however, bought PCs with Intel chips because of the company's superior marketing. Lately, that marketing has slipped. Let's hope that changes with a new CEO.

6. An AMD boost?

As Intel moves into a new phase in its history, there's a chance—a small chance—that AMD could capitalize on that shift. After all, the company is the only other major processor maker in the PC market, and part of Otellini's appeal to his company's board was his ability to woo PC makers. With him out of the way, AMD might find the opening it needs to start making some more inroads into the PC market.

7. ARM capitalizes

ARM couldn't be happier to see Otellini go. Over the last couple of years, Otellini has focused nearly entirely on improving Intel's standing in the mobile space. Once he leaves, a new boss with new ideas will replace all of that work. In the meantime, ARM has the time it needs to cement its power in the mobile market. It's a great opportunity for the chip designer.

8. Opportunities for consolidation

Whenever a major executive announces his or her departure, talk of acquisitions and mergers in the industry crop up. Why? It's simple: When the leader in the space loses its chief executive, other companies smell weakness. And when they smell that weakness, they look for ways to become stronger. Acquiring other companies is the best way to achieve that. Don't underestimate the possibility of consolidation in the processor market as Otellini's transition gets under way.

9. Trouble in Intel's executive ranks?

When chief executives leave a company, there are typically some issues with morale. If a new CEO is chosen from within, those who didn't get picked get angry. And since CEOs tend to have their favorites, those who were held in such high regard might lose their standing under a new rule. There's a real possibility of dissension in Intel's executive ranks.

10. Get ready for more departures

Following that, the entire industry should expect more departures from Intel before this is all over. As mentioned, some dissension is likely, and head hunters will come fishing for some top talent to lead divisions at other companies. In addition, some of those Otellini might have protected could be pushed out. Intel's bloodletting isn't over just yet.

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