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Reply #83: Intel's next CEO brings different focus (Uh-oh) [View All]

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54anickel Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Nov-12-04 03:12 PM
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83. Intel's next CEO brings different focus (Uh-oh)
My uh-oh is biased, coming from an Engineering background. No offense meant to any MBA DUers.


Otellini steps in as Intel struggles to find its way in a changing market. Technology transitions are forcing it to change how it makes chips. Rival Advanced Micro Devices is scoring big wins. In July, after a series of product delays, recalls and cancellations, Barrett sent an e-mail to all employees telling them Intel's performance was unacceptable.

Otellini ''might just be what the doctor ordered,'' to fix these problems, says equity analyst Rick Whittington at Caris and Co. That's because:

* He's not an engineer. Unlike his predecessors, who all had advanced science degrees, Otellini has an MBA and a background in finance and marketing. That could help him make Intel's business operations as streamlined as its manufacturing plants.

* He's affable. Barrett and Grove are known for their legendary gruffness and office confrontations. ''I may be a bit more verbose,'' Otellini says, laughing. He can be all business but is quick with a story or joke. ''He's got a terrific reputation for organization and managing by consensus,'' Whittington says.


But there are big challenges ahead. The success of AMD's new chip designs are forcing Intel to play catch-up. Dell, Intel's biggest customer, is considering AMD because ''some of their products have advanced past Intel's,'' Dell CEO Kevin Rollins said Thursday. Rollins later remarked, ''(Otellini) is a good friend, and we're just as pleased as we can be (about his promotion).''

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