PC chip giant Intel has named company veterans Brian Krzanich as its new chief executive and Renée James as its new president, despite market calls for an outside candidate, amid turbulent times in the PC industry.
In a statement, Intel’s board praises 52-year-old Krzanich, who first joined the company 1982 and will succeed current CEO Paul Otellini.
“Brian is a strong leader with a passion for technology and deep understanding of the business,” Intel chairman Andy Bryant states.
“He has the right combination of knowledge, depth and experience to lead the company during this period of rapid technology and industry change.”
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Incoming president James previously served as the company’s chief operating officer, overseeing Intel Technology and Manufacturing Group, Intel Custom Foundry, NAND Solutions group, human resources, information technology and Intel’s China strategy.
“I look forward to partnering with Renée as we begin a new chapter in Intel’s history,” Krzanich says.
“Her deep understanding and vision for the future of computing architecture, combined with her broad experience running product R&D and one of the world’s largest software organizations, are extraordinary assets for Intel.”
However, according to Reuters, some analysts are not impressed with the decision to hire company veterans rather than outsiders, amidst a rapidly changing semiconductor industry.
“An external candidate might have been a better choice – with no negative reflection on Brian – simply because of the juncture Intel is at with what’s happening in the PC market and the need to take major action outside of PCs,” says Williams Financial Group analyst Cody Acree.
“Brian may very well come in and make those same very difficult dramatic choices, but it’s less likely.”
As SmartCompany recently reported, Intel has told investors it anticipates its current-quarter revenue could drop by as much as 8% year-on-year as PC sales plummet.
The company predicts its current-quarter revenue will drop by up to 8% year-on-year to around $12.9 billion.
Intel has seen its traditional PC chip market erode since the release of Windows 8, with worldwide PC sales taking a 13.9% hit during the first quarter of 2013, according to recent IDC figures.
The release of Windows 8 has led to a dramatic 13.9% year-on-year slump in first quarter PC sales, according to IDC.
The report says worldwide PC shipments totalled 76.3 million for the quarter, with the contraction marking the largest percentage single quarter decline in the sector since the mid-1990s, and exceeded analysts’ forecasts of a 7.7% drop in sales.
Meanwhile, in the smartphone and tablet sector, Intel faces tough competition from processors based on designs from processor design firm ARM, including NVidia, Qualcomm, Texas Instruments and Samsung.
Earlier this week, Qualcomm announced it will begin advertising its processors on television, while ARM announced it is introducing a new technology, called big.LITTLE, that will see improved mobile device performance with longer battery life.