Intel's execution these days is just plain bad. I think Krzanich should be shown the door and somebody from TSMC installed at the top.
BK's big mistake was mobile. It cost them a lot of money and until 2014 it was all "ultra mobilez!!!1", but then they went silence and abandoned the battlefield.
So the contra-revenue was for nothing. The 2 partnerships (Spreadtrum and the other) for nothing. Foundry going slow and not taking off. The complete Atom roadmap disappointed. Remember, back in 2013 BK was super proud of their speed when they announced the "creative" act of improving TTM with Atom on 28nm.
I think no one expected this failure. Intel's track record is superb. I remember using this article in discussions a long time ago on AT:
http://seekingalpha.com/article/2025261-history-suggests-intel-will-succeed-in-mobile.
BK's thing was always that he wanted to make the company more agile, super fast and responsive, not missing the big stuff like mobile and IoT. But BK's track record isn't all that good, to be honest. And sure, I understand that Intel wants (and should) "if it computes and connects, it does it best with Intel".
But I just can't understand how they failed so badly. Bad decisions were definitely made by people high on the chain at Intel.
Now it is all "cloud + IoT". No more words about mobile except 5G.
BK shouldn't change his vision so often.
But maybe he was just forced to abandon? Because if you look at it, fundamentally, what caused all of this? The lack of good technology*.
Even though the R&D spending rate is astonishing. The super slow time to market / execution. They didn't have compelling technology, so then for BK the game ends and. He lost his bet -- possibly the whole reason he became CEO -- and now also with the PC in free fall (despite Skylake, Windows 10) has to go after the profit.
* Okay, so it all started with the 14nm disaster. Not BK's fault. Maybe some hubris / slow reaction from the manufacturing folks. And this just killed everything beceause it slowed down the WHOLE company. The whole Tick-Tock beating heart of Intel. The 14nm modem. Integrated (low-end) Atom. High-end Atom. Core m still too costly for mobile. [I mean, if you look at this, Intel was just not ready for mobile when BK took over, not prepared at all to fight in the cost sensitive space, unlike the PC.] Broadwell(-E) and Xeon 14nm delay. Skylake wireless vision cancelled. Xeon Phi delay. Silicon photonics delay. Delays all over the place and bad products with the good stuff always 18 months on the horizon.
Last, but least, 10nm delay (
!!!!!).
If I were BK, I would stop saying the meaningless words "we'll always strive to get back to 2 year blabla", and instead DO it. I'd slow down the buyback and take the annual 1.4B savings they got now and use all of it to invest in the beating heart of Intel. Because a faster beating heart will result in all the sweet technology (which is better than the competition because they're beating faster), and thus the ROI investors want.
Edit: I don't think they need people from TSMC high at the chain. They should take people from Apple (while they're at it, they can also take Anand Shimpi and Brian Klug).
Edit: You can't put all the blame on Otellini, since BK has done quite a reshuffle of the management, so maybe he made the company just worse in some respects. I dunno.
I just know that they're right with focusing on DCG and HPC and probably IoT and hopefully foundry (but that hasn't materialized since the first talk of opening up in 2013 Investor meeting, and companies probably very scared with the recent track record and lack of experience) and non-volatile memory.
The growth stuff must enable them to continue invest to invest in process thech more and more and 450mm².