Intel’s Partners Call Future CEO to Remain Focused on Ultra-Mobile Chips, Channel Market

Partners of Intel Want the Company to Continue with Ultra Low-Power Chips

by Anton Shilov
11/20/2012 | 02:42 PM

While some analysts believe it is time for Intel to concentrate on its core businesses and stop rapid expansion on the market of chips for ultra-mobile products like tablets or smartphones, where ARM Holdings sets the rules of the game, numerous partners of the world’s largest chipmaker believe that Intel should continue with its ultra low-voltage efforts even under the new chief executive officer. Besides, many want Intel to remain focused on the channel.

 

“I imagine they want to get some new blood, new ideas and new focus. But, then again, they do not want to lose what has made them strong and made them the great company they are today,” said Todd Swank, vice president of marketing at Nor-Tech, a solution provider and Intel partner, in a conversation with CRN web-site.

Sales of microprocessors for personal computers are facing challenges these days due to slow sales of PCs since consumers tend to spend more on ultra-portable gadgets like smartphones or tablets. As a result, the market situation is changing rapidly and represents major challenges for Intel. Investors are quite worried since the semiconductor giant spends billions on building new fabs as well as research and development for high-end microprocessors, a shrinking market. At least one analyst recently proposed Intel to dramatically reconsider its strategies and reduce its expenditures.

“[This is a] chance for Intel to stop thinking like Facebook and start thinking like Philip Morris.  We believe the move to a new CEO is not an automatic positive unless Intel changes its focus from trying to be a growth company to focusing on its core PC microprocessor business and cutting opex and capex, raising margins, and increasing cash returns to shareholders,” said Christopher Danely, an analyst with J.P. Morgan, according to Forbes.

Customers of Intel would prefer the company to continue making business as usual since it guarantees good results for their business.

“I am very sure that the current technology market dynamic is nothing more than part of the cycle Intel has thrived in over the past 45 years, and they are perfectly capable of thriving in this environment, with or without Paul. For Intel, they have a tremendous depth of talented candidates inside the company, and I would be really surprised if they found anyone outside the organization that would be a match for the senior management that is already in place,” said Randy Copeland, president and CEO of Velocity Micro, a system builder and Intel partner.

"From our perspective, it isn't likely to have much impact unless someone very young and aggressive was granted a miracle in [being] selected. Most of the folks who could be reasonably expected to fill the big shoes are highly unlikely to make sweeping changes in a company like Intel, so I imagine it will be business as usual," said Douglas Grosfield, president and CEO of Xylotek Solutions.