Intel (INTC, Financial) CFO Stacy Smith spoke with FOX Business Network’s (FBN) Liz Claman about the company’s positive earnings report and seeing a boost from Android-based tablets. Smith said people can expect “to see Android based tablets on Intel based architecture” and predicts Intel will be able to “provide more performance and more features in the same power envelope and the same cost.” He goes on to say that while Intel has a reputation for grooming people within the company to fill executive roles, CEO Paul Otellini has “the excitement” and “is having a great time with the results we are posting.”
On whether Intel is grooming a successor to CEO Paul Otellini:
“At the board level they are always looking at making sure there are a lot of people developing the skills. Paul is a young guy, I have got to believe he is having a great time with the results we are posting. I look in his eyes, I see the excitement, I don’t think he is going anywhere.”
On the tablet business:
“We are in very early innings of this playing out. We have brought out a product called Oak Trail so that is starting to participate in winning designs in tablets. We have a product that is coming out in the second half of this year called Medfield so you will start to see Android-based tablets on Intel based architecture. If we can provide more performance and more features in the same power envelope and the same cost, ultimately I think we win a lot of these designs. That has been our historical playbook.”
On which businesses within Intel are experiencing growth:
“We saw strength across all of our major product lines. People are missing the kind of growth we are participating in. As more devices compute and connect to the Internet, it’s actually an opportunity for us.”
On competition with Samsung:
“They play in some of the same industries that we do but with very different products. Their main line business is memory chips, ours are really the brains of computers; products that compute and connect to the internet is really where our playbook is. For us the strategy has to be to continue to drive our performance advantage across a variety of devices.”
On the design flaw in the Sandy Bridge chip:
“When we identified this, my expectation was we would leave a couple of million units of sales on the table in the first quarter just because we weren’t going to be able to ramp up the new chips fast enough. The execution out of the factory network was spectacular. They exceeded my expectations. We were able to meet customer demand and completely mitigate that sales impact. I applaud the 40,000 plus people that work in our manufacturing organization.”
On whether Intel is grooming a successor to CEO Paul Otellini:
“At the board level they are always looking at making sure there are a lot of people developing the skills. Paul is a young guy, I have got to believe he is having a great time with the results we are posting. I look in his eyes, I see the excitement, I don’t think he is going anywhere.”
On the tablet business:
“We are in very early innings of this playing out. We have brought out a product called Oak Trail so that is starting to participate in winning designs in tablets. We have a product that is coming out in the second half of this year called Medfield so you will start to see Android-based tablets on Intel based architecture. If we can provide more performance and more features in the same power envelope and the same cost, ultimately I think we win a lot of these designs. That has been our historical playbook.”
On which businesses within Intel are experiencing growth:
“We saw strength across all of our major product lines. People are missing the kind of growth we are participating in. As more devices compute and connect to the Internet, it’s actually an opportunity for us.”
On competition with Samsung:
“They play in some of the same industries that we do but with very different products. Their main line business is memory chips, ours are really the brains of computers; products that compute and connect to the internet is really where our playbook is. For us the strategy has to be to continue to drive our performance advantage across a variety of devices.”
On the design flaw in the Sandy Bridge chip:
“When we identified this, my expectation was we would leave a couple of million units of sales on the table in the first quarter just because we weren’t going to be able to ramp up the new chips fast enough. The execution out of the factory network was spectacular. They exceeded my expectations. We were able to meet customer demand and completely mitigate that sales impact. I applaud the 40,000 plus people that work in our manufacturing organization.”