Intel’s Challenges

The New York Times writes:

Next week in one of his first official acts as the designated chief executive, [Paul Otellini] plans to present his strategy to Wall Street analysts. He may have a lot to answer for, including the 25 percent decline in Intel’s stock price this year.

Mr. Otellini will tell analysts that he plans to focus on four areas for growth: international markets for desktop personal computers, mobile and wireless applications, the digital home, as well as a new initiative aimed at large corporate computing markets that Intel is calling the Digital Office.

The strategy is a significant shift – a “right-hand turn,” as Mr. Otellini likes to say – from Intel’s long-term obsession with making ever-faster computer chips. Instead, the company is now concentrating on what he calls platforms: complete systems aimed at both computing and consumer electronics markets.

Mr. Otellini insists that the recent missteps, including the premature introduction he himself made of the digital project, are simply a result of over-optimistic marketing.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.