San Fransisco: Intel Corp. chief executive officer Brian Krzanich is devoting more resources to processors for smartphones and tablets as he works to speed the transition to mobile chips amid a global personal computer slump.
The company will use the same advanced manufacturing for the Atom line of low-power, cheaper chips for smartphones and tablets that had previously been set aside for the more robust Core processors for desktops and laptops, Kzranich told reporters at a meeting in San Francisco.
Krzanich is working to reverse declining sales at the world’s largest chipmaker with faster, more energy-efficient processors for handheld machines. As consumers increasingly turn to mobile devices to surf the Web, send email and watch video, the PC market is set to contract for a second straight year.
“We haven’t been as clear about Atom’s position prior to this,” Krzanich said.
To hasten the shift to mobile, Krzanich said Intel is holding weekly meetings on Atom to speed development of new versions. Intel has gone years between major updates for Atom in the past.
Krzanich is also continuing to evaluate Intel’s role in the television business. The company has said it plans to begin selling a set-top box offering Internet-based TV this year. Negotiations with media companies are ongoing, and Krzanich said he hasn’t determined what the business model should be.
“We are not big content players,” he said. “We’re being cautious.”
Shares of Intel increased less than 1% to $24.17 at 3.11 pm in New York on Friday. They had advanced 17% this year through Friday, compared with a 13% gain for the Standard & Poor’s 500 Index.
Intel’s sales won’t start growing again until next year, according to the average of analysts’s estimates compiled by Bloomberg. This year, they will be little changed at $53.6 billion, analysts project. By contrast, revenue for Qualcomm Inc., the biggest maker of mobile chips, will surge 28% in 2013.
Krzanich, a former factory manager, was promoted to the top job at the Santa Clara, California-based chipmaker in May, succeeding Paul Otellini, who retired.
On 21 May, Krzanich made his first public personnel moves when he took direct control of the Intel Architecture Group. Under Otellini, the unit was run by David Perlmutter, who will now lead a management transition effort. When Krzanich was made CEO, Renee James was promoted to president, making her the No. 2 executive in the company.
Intel has said Justin Rattner is stepping down as chief technology officer and director of Intel Labs.
Global tablet shipments are expected to eclipse PCs by 2015 as consumers flock to smaller, more affordable machines, according to researcher IDC. Intel ended 2012 with less than 1% market share in tablets and phones, according to Sanford C. Bernstein and Co. research. Bloomberg
Ian King in San Francisco and Lisa Rapaport in New York contributed to this story.