Intel Corp. Chief Executive Paul Otellini will retire in May, giving the world's largest maker of microprocessors six months to find a new leader as it confronts two major challenges: a shaky economy and a shift toward mobile devices.
Otellini's decision surprised Intel's board of directors, which had been expecting him to remain CEO until the company's customary retirement age of 65. Otellini is 62.
"The decision was entirely Paul's," Intel spokesman Paul Bergevin said. "The board accepted his decision with regret."
Otellini will be ending a nearly 40-year career with Intel, including an eight-year stint as CEO by the time he leaves.
"It's time to move on and transfer Intel's helm to a new generation of leadership," Otellini said in a statement.
Intel's board plans to consider candidates inside and outside the Santa Clara, Calif., company as it searches for Otellini's successor. Otellini will be involved in the search.
Although Otellini is generally well regarded, he has faced criticism for initially underestimating the effect that smartphones and tablet computers would have on the personal computer market.
"The shift came more quickly than they expected, and when they did finally see what was happening, they were a little late to react," said technology analyst Patrick Moorhead of Moor Insights & Strategy.
In 2008, nearly 300 million PCs were sold and most of them were powered by Microsoft's Windows and Intel's microchips, according to Forrester Research. Some 142 million smartphones were sold that year, at a time when the tablet market hadn't really taken off.
By contrast, Forrester estimates that 330 million PCs will be sold worldwide this year, compared with 665 million smartphones and just over 100 million tablets. By 2016, Forrester predicts, annual sales of PCs will rise only slightly to 370 million while more than 1.6 billion smartphones and tablets will be purchased.
Intel CEO Paul Otellini plans to retire in May
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Intel CEO Paul Otellini plans to retire in May
