Paul Otellini Stories May 16, 2013

Outgoing Intel CEO Paul Otellini’s big regret? Not landing an Intel chip in Apple’s iPhone


Interesting exit interview with Intel CEO Paul Otellini wherein he says (duh) he regrets not trying harder not to get his chips inside the iPhone (and subsequently iPod touch and iPads).

But, oh, what could have been! Even Otellini betrayed a profound sense of disappointment over a decision he made about a then-unreleased product that became the iPhone. Shortly after winning Apple’s Mac business, he decided against doing what it took to be the chip in Apple’s paradigm-shifting product.

“We ended up not winning it or passing on it, depending on how you want to view it. And the world would have been a lot different if we’d done it,” Otellini told me in a two-hour conversation during his last month at Intel. “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.”

While there seems to be some sentiment that if Otellini had tried, Intel would have won Apple’s iOS device business. But, it clearly isn’t that simple. ARM chips use an order of magnitude less power than Intel chips, even to this day.

Also, if Intel is so great at powering mobile device chips, why wouldn’t Android devices (And Windows 8 devices!) have used them as an advantage?

Steve Jobs and Apple prioritized efficiency over raw power which may have proved to be one of the winning advantages of the feature-rich iPhone and iPad over a decade plus of Windows machines.

Paul Otellini Stories October 1, 2012

Intel’s answer to iPad’s ARM processors sees delays due to power management software

A new report by Bloomberg, citing unnamed inside sources, revealed Intel’s software for a new processor, codenamed “Clover Trail,” which would give the iPad’s ARM processors a run for their money while preserving battery life in Windows 8-based tablets, is reportedly running into delays.

According to Bloomberg:

Intel Corp. (INTC)’s delayed delivery of software that conserves computer battery life is holding up development of some tablets running the latest version of Microsoft Corp. (MSFT)’s Windows operating system, a person with knowledge of the matter said.

Microsoft hasn’t yet approved any tablets featuring an Intel processor code-named Clover Trail because the chipmaker hasn’t produced necessary power-management software, said the person, who asked not to be named since the process is private.

The delay, following remarks by Intel Chief Executive Officer Paul Otellini, who told employees in Taiwan that Windows 8 needs improvement, underscores how the Wintel alliance that has dominated the personal computer industry for three decades is struggling to respond to the threat of Apple Inc. (AAPL)’s iPad. At stake is the chance to make up for lackluster PC buying by capturing users who are flocking to mobile devices, snappy applications and elegant design.

Software development delays obviously limit manufacturers, as they have less time to prep their tablets for the Holiday season; and thus, they have less of a chance to curb Apple’s 70 percent tablet market share.

“It’s bad news for Microsoft and Intel because it’s not going to present the best light on either one and it will hurt the perception of Windows 8,” said Directions analyst Wes Miller to Bloomberg.

Miller further noted Window’s Clover Trail-based tablets will directly compete with Apple’s ARM-based iPads.

Get the full report at Bloomberg. 

Paul Otellini Stories September 25, 2012

Intel CEO Paul Otellini: Microsoft Windows 8 OS is being released before it’s fully ready [Update: Intel denies]

This cannot be good.

Intel Corp. (INTC) Chief Executive Officer Paul Otellini told employees in Taiwan that Microsoft Corp.’s Windows 8 operating system is being released before it’s fully ready, a person who attended the company event said. Improvements still need to be made to the software, Otellini told employees at a company meeting in Taipei today,

If anyone should know, it is Otellini. He is also on Google’s Board of Directors, and he might be feeling some of the sting from the ARM-based Windows RT. Still: Ouch.

Many believe Microsoft’s Windows 8 strategy is reactionary and being dictated by the success of the iPad.

Update: Intel denied in a press release this afternoon the statements:

Intel has a long and successful heritage working with Microsoft on the release of Windows platforms, delivering devices that provide exciting experiences, stunning performance, and superior compatibility. Intel fully expects this to continue with Windows 8.

Full PR below:

Paul Otellini Stories May 14, 2012

Intel plans to make chips Apple ‘can’t ignore,’ for iOS devices, says CEO [Video]

Intel’s CEO Paul Otellini wants to make his company’s silicon “so compelling” that Apple will use it in iOS devices.

The chief made these comments during a Q&A session at Intel’s annual investor day in Santa Clara, Calif., Thursday. Otellini was frank when discussing Intel’s potential to manufacture chips that Apple cannot ignore (video clip above):

“Our job is to ensure our silicon is so compelling in terms of running the Mac better or being a better iPad device, such that as they [Apple] make those decisions they can’t ignore us.”

The full story is at Forbes, or watch more Intel 2012 Investor Meeting webcasts [here].

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