Shake-up: Two Top Intel Executives in Charge of PC's and the Internet of Things Abruptly Leave
Intel has just revealed that two of its most prominent executives have decided to leave the company, the latest sign of turmoil at the chip giant following a recent management change and continued failure to penetrate the mobile-device market. Roger Kay, who follows Intel for the research firm Endpoint Technologies Associates, said that "When things go wrong, heads have to roll. Whose head? Whoever's head is available."
The first prominent executive departing is Kirk Skaugen, a highly regarded manager that some Intel watchers saw as a potential CEO candidate. Intel's shares slid slightly over 1% on the news.
Kirk Skaugen was senior vice president and general manager of the Client Computing Group (CCG) at Intel Corporation. He was responsible for the company's client computing business and strategies exceeding $34 billion for PC, tablet, smartphone, and phablet platforms. He lead initiatives such as the Ultrabook and the more recent 2 for 1 notebook/tablet hybrids.
The second executive to leave is Doug Davis, another senior vice president overseeing chip sales for applications associated with what Silicon Valley calls the Internet of Things.
The Wall Street Journal noted in their report that "Intel's most dramatic move came back in November, when Intel recruited Venkata "Murthy" Renduchintala, a former executive vice president at rival Qualcomm who took a new position as president in charge of businesses including PC and mobile chips—a move that put him above the departing executives.
In addition, people familiar with the situation said Friday that Aicha Evans, a vice president who was most closely involved in selling chips for smartphones, had decided to leave the company. An Intel spokeswoman declined to comment on that possibility.
Intel, the long-time leader in supplying chips for personal computers, has failed for years to build a comparable franchise in chips for smartphones. Analysts believe Intel lately has been in the running to supply some wireless chips for Apple, but the status of any deal remains unclear."
Whether the shakeup is going to send negative ripples through the PC world or be taken in stride as Intel reinvents its direction is unknown at this time.
Back in 2014 Patently Apple posted a report titled "Steve Ballmer Laughs no more at Apple's iPhone Revolution" wherein we noted Ballmer stating the following in 2007: "There's no chance that the iPhone is going to get any significant market share. No chance. It's a $500 subsidized item." Ballmer missed the boat completely and set Microsoft back a decade in refusing to shift to compete with Apple faster.
Intel likewise didn't see Apple's mobile revolution coming in time, especially when Apple introduced their iPad. While the slide of the PC may finally stabilize by 2017, according to industry analysts, Intel has to rapidly make some dramatic shifts to get back to relevance in the market again. Today's news is a telltale sign that their latest plans have failed once again.
Yet in the bigger picture, Intel was planning major changes behind the scenes. Back in January we posted a report titled "Full Video of Intel's CES 2016 Keynote Shows new Directions the Company is taking Moving Forward." At that keynote Intel's CEO Brian Krzanich stated the following: "We believe we're entering a new era of consumer technology where consumers are choosing experiences over products. Products that are purely based on the newest technology or feature…Those are the ways of the past." Today's news only confirms the "ways of the past" are over as Intel sets its sails in new directions.
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