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Intel CEO Paul Otellini to retire in May

Scott Martin, USA TODAY
IntelCEO Paul Otellini  plans to retire in May 2013 after nearly 40 years with the company.
  • Departure caps 40-year career with the company
  • Retirement was not unexpected
  • Succession comes amid challenging period for PC industry

SAN FRANCISCO -- Intel CEO Paul Otellini plans to retire from the chipmaker in May, a move that comes amid a challenging period for the PC industry.

His departure will cap a nearly 40-year history at the company. Intel has been a powerful figure in Silicon Valley as the provider of computer processors to the world's personal computers, but in recent years, the chipmaker has missed out on the mobile wave.

"After almost four decades with the company and eight years as CEO, it's time to move on and transfer Intel's helm to a new generation of leadership," Otellini said in a statement.

Shares of Intel close up 6 cents to $20.25 Monday.

Intel's fortunes are inextricably linked to the personal computer industry and Microsoft's Windows. That has forged a juggernaut of the Windows and Intel, or Wintel, duopoly of past decades in the industry. In recent years, however, it's missing out on much of the action from tablets and smartphones.

Otellini's retirement was not unexpected. "I think it's not a surprise, but I think there's a tinge of some other factors at work here," says Gartner analyst Ken Dulaney. "The PC market hasn't found the next formula to press the next generation of PCs."

Meanwhile, chips from the likes of Samsung and Qualcomm have rushed in to provide mobile processors to Apple's iPad and other tablets and smartphones. As those sales soared in recent years, personal computer markets have softened after decades of double-digit gains.

Both Intel and Microsoft have tried to reinvigorate the PC market. Intel has been a big proponent of slimmed-down Ultrabooks, while Microsoft has unleashed its dramatically redesigned Windows 8. It's too early to tell whether those efforts will pan out.

"Both Intel and Microsoft have to come up with something new," says Dulaney. "It's something the next chairman is going to have to deal with."

Intel's board of directors will choose Otellini's successor and is considering both inside and outside candidates for the job.

Intel also announced the board has approved the promotion of three new executive vice presidents. They are: Renée James, head of Intel's software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.

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