“Sitting in a hotel conference room in early December after speaking at a leadership conference in San Francisco, Intel CEO Paul Otellini, who has been in the job since May, for the first time outlined some of the historic changes — and the challenges — he faces in remaking Intel. The chipmaker is changing its logo, dropping the Pentium brand, and launching a ‘big bang’ of products throughout 2006,” BusinessWeek reports. Otellini spoke with BusinessWeek Technology Correspondent Cliff Edwards about a range of topics, including Apple Computer:
Edwards: These are some pretty cherished institutions you’re dropping — the Pentium brand, the dropped “e” in the logo. How much trepidation did you feel?
Ottelini: When Eric asked me if I had any sacred cows, I said no. He asked, what around the dropped “e”? And I said if it makes sense, it’s time to do it. He was given pretty free rein to change. And when I saw [the new logo], it just jumped out at me. It reflected that change, where we want to go. There’s a feeling of movement around [the new logo], and the tag line “Leap Ahead” certainly reiterates that.
Tell me about the Apple relationship. You struck the deal in June for them to use Intel chips, which was something of a coup. What does that mean for Intel?
At the end of the day, we live to sell chips. First and foremost, it’s market-expanding for us. Secondly, as I said at the developers’ forum, the thing that Apple really brings to the Intel family of customers is their innovation. They [have an] ability to not just mix hardware and software, which is unique, but also to drop software upgrades rather frequently to take advantage of hardware changes. I think what [Apple CEO] Steve [Jobs] said at the forum is they’ve dropped five releases of the operating system in the last four years. That alone is very appealing. [When it comes to design], they are a front-runner — people copy some of their design elements. I believe as they start taking advantage of some of our lower-power products…it will drive a trend toward smaller, cheaper, cooler.
More in the full interview here.
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Related article:
Think Different: Intel plans to ‘Leap ahead’ by axing ‘Intel Inside,’ ‘Pentium,’ dropped ‘e’ in logo – December 30, 2005
Like I’ve said before, every company that partners with Apple gains morale and gravitas.
Great obsservation tank. There is so much positive energy at Apple right now. It invigorates those that partner with Apple and makes them both better.
2005 was a tremendous year, yet, 2006 stands to be so much more.
Uh, huh.
Look like Intel-ligence is partnering with Apple.
“I believe as they start taking advantage of some of our lower-power products…it will drive a trend toward smaller, cheaper, cooler.”
Sounds like a revised Mac Mini.
Oooooh, they eliminated the “e”. Awesome marketing.
“They’ve dropped five releases of the operating system in the last four years.” What an unfortunate turn of phrase. Let’s hope that Paul didn’t actually say that and has been misquoted.
Smaller, cheaper, cooler. Reminds me of swifter, higher, stronger.
2006 will be a …..blast?!
What about the deal with did with Apple for HP Branded iPods. We were supposed to give Apple “gravitras.” We didn’t even get gravy train!
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It really is beginning to look like nothing will stop Apple unless something happens to Steve. I mean really, what could possibly stop the momentum at this point. It’s become obvious that Apple has had a long range strategic plan in light of the Intel switch and we are about to see this brilliant strategy unfold before our very eyes.
MW.. how appropriate.. ‘nothing’ as in it looks like nothing will stop Apple at this point.
Carly, you were too afraid of Microsoft.
I know this is somewhat out of the blue, but I’ve had a few drinks this evening, and feel friendly toward my fellow Mac users…
Anyhoo, I switched in mid-September 2004 and bought an eMac. I lusted after Apple products for months before, but the purchase literally changed my life.
In mid-2003 I bought an iPod, and everybody thought I was crazy then. Now, I try to find friends that *don’t* have an iPod.
Everybody thought I was crazy buying a Macintosh, but now I’ve switched 4 people in the past year and a half, and there’s more on the way. Sounds a lot like my iPod-toting friends.
The times they are-a-changing, people. It might just be the Christmas/holiday cheer, but I am excited. I can’t wait to see what happens this next year. And it’s not going to be just this year – it’s going to be a slightly slow process, but I think the world is finally understanding.
Pat yourselves on the back folks. We were first, and without people like ourselves, this whole evolution wouldn’t have happpened.
Funny that Carly’s alias would post, as I was thinking Otellini sounds strangely enthusiastic, kind of like how Carly sounded when she struck the HP iPod deal. I hope his outcome is better!
And, did Otellini call Steve for some logo font advice, cause Steve’s the font-meister, and I have a feeling that he’s not gonna like their new logo, particularly if he has to stick it on the outside of his Macs.
Interesting that Intel engineers are feeling demoted:
“The changes have created some angst among high-level engineers working on PC products feel they’ve been stripped of their star status. Other employees are simply uncomfortable with the new emphasis on marketing.”
Surely, these Intel engineers need only look at their newest customer -Apple- to see that fantastic, motivated engineers AND marketing hype work superbly well together?
No doubt Ottellini needs to get some tips from Jobs on this score too!
I posted this idea on the previous story, but it troubles me that Ortellini speaks glowingly about all Apple will do for Intel, but nothing about what flows the other way. Obviously, Apple gets video content and technology for home distribution of the same, and the temporary advantage Intel holds in low power CPUs. But the former may or may not be worth a wholesale change of this magnitude for Apple, and the latter’s like saying Poland Springs sells me better tasting water than Dasani.
Where’s a statement – any statement – regarding what Intel will DO for Apple?
Plus the other thing I shook my head at was the smoke layed by this statement: “… Viiv is a world changer. Independent of the hardware as it evolves, it’s DRM-agnostic, but it protects everything. It allows you to move things in a free fashion, but still maintain the desire of the content owners to get paid for what they do. It will change the business models of entertainment and theaters and Hollywood, and it will be for the benefit of consumers.”
The first half sounds nice, but it’s not possible that Viiv is DRM agnostic with TPMs installed by default. I doubt seriously that a Viiv-like device will ever actually work as an entertainment device without utilizing that chip, and that’s not agnostic no matter how you slice it. And, as anyone who has been following the antics of the multimedia industry knows all too well (Sony CDs anyone?), “the desire of the content providers to get paid” flies headlong into “the benefit for the consumers” like a bird flying into a sliding glass door. Unless Viiv lets me readily hack my way out of a DRM scheme that infringes on my Fair Use Rights, if they’re impinged by some overzealous company (no chance), then the cards are intentionallly stacked against the consumer, right out of the box.
Seems like a great deal for Intel all the way around, but I’m not sure how much so for anyone else.
“it will drive a trend toward smaller, cheaper, cooler”
They must plan on mixing a little BASF into their chips
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(Never knew exactly what it was I’m supposed to buy after watching one of their commercials…do you?)
No statement about how the same sosftware on MacOSX totally outperforms Windows on Intel chips?????? Or does it???
Hmmmmmmmmm…..
“Smaller, cheaper, cooler”?
Apple cheaper?
Hmmmmmmmmm…..
“Where’s a statement – any statement – regarding what Intel will DO for Apple?”
I’m guessing he doesn’t want to do a Carly. That is, his job is not to sell people on the benefits of Apple. His job is to boost revenues and sales at Intel. He’s probably having to spend some extra time convincing the old timers at Intel that Apple really is important to Intel’s future so going on about how this will help Apple won’t help his cause.
Besides, Steve Jobs will do a great job telling the world why this is good for Apple.
iSteve:
You make a good point. I’ll incorporate that into my thought processes for the future – Thanks
“IN the future” … otherwise I’d be God.
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What other benefits for Apple?
Some journalist wrote that with the change to Intel, Steve Jobs will be parking his tanks on Microsoft’s lawns.
I agree.
There will be an immense software (not to mention hardware) market at Apple’s disposal; with only about 3% of the O.S. world market now and with a much superior product, after the change-over, the sky’s the limit for Apple.
Macaday said: “… Intel engineers need only look at … Apple- to see that fantastic, motivated engineers AND marketing hype work superbly well together?
No doubt Ottellini needs to get some tips from Jobs on this score too!”
Odyssey67 said: <i>”Where’s a statement – any statement – regarding what Intel will DO for Apple?”
IMHO you’re both on target. It’s O.K. to be self centered among your employees, share holders or your mom. However, in public it’s at least a faux-paus; at worse a deal breaker! Basic rule of relationships: WIIFM
Ottellini has a lot of “capital” right now: new guy and big strategic new customer. Will he invest it wisely or squander it like say a George W.?
{Sorry, couldn’t resist baiting the politico crowd}
Visited an Apple store in the DC area yesterday. What a buzz of people. buying and buying. AAPL stock has taken a breath at the end of the year and dropped back to $72 and lower. In a couple of weeks with new products announcements and all the geek hype Apple is poised to go higher. It will be a repeat of a 50% increase in three months we just saw. Where do you think the stock price of Apple will be by April 1st?
Oh yes, Washington Post has an article this morning about Microsoft (Windows Security Flaw Is ‘Severe’
PCs Vulnerable to Spyware, Viruses
By Brian Krebs
Special to The Washington Post
Friday, December 30, 2005; Page D01)
Indeed the Apple tanks are sitting in Gate’s front yard!
Remember all the hype when the IBM G5 processor and the PowerMac G5 came out?
Remember all the exiciting video about Apple’s partnership with IBM?
oh you never saw it? here it is
http://www.esm.psu.edu/Faculty/Gray/graphics/movies/g5_intro_m480.mov
Now what happened? That’s right, despite the best spin now Macs will be using INFERIOR INTEL CHIPS.
No more innovation through competition, DRM up the royal ass, restricitng software, music, movies and everything!!!
Now Apple is going to make Intel look good?
I’m not excited at all, Intel is the same slow inferior dead company it always has been. Just like HP is, that’s why they sold out to Microsoft HD-DVD over BlueRay.
A little Apple spark is going to do nothing for Intel, just like it didn’t do squat for HP.
The Intel rank and file “farmers” will ride out this little “pioneer” storm and make their moves to kill APPLE.
YOU WATCH AND SEE!!
MDN Word: “hell” and that’s life with Intel, Microsofts evil twin.
It was Jobs who partnering with intel. If Apple makes excellent machines, why can’t people accept he made the right choice with iNtel. Deal with it
Apple is the best. Apple chooses the best parts. La La La. But now, Apple uses Intel, Oh well, Intel sucks. Apple sucks.
What is wrong with this pictures. Am I missing something?
What Intel makes for Apple will also be in Dell, HP, Sony, etc, etc, etc. computers.
Soon everyone will be comparing apples to apples or oranges to oranges – no mystery of which processor is faster, more GHz, etc. With everyone using the same the question will come down to performance (speed) of the software on one OS vs. the other OS.
If Apple is slower using the same chip as Windows computers, Apple will have a hard time convincing people to switch.
“Heck,” says the BestBuy salesguy, “Apple is using the same hardware as this Windows XP Acer X100 and all the software on the Windows machine runs faster than on the Mac….and it costs 25-45% less than the Apple. You decide dude.”
————
Intel, with little compettion, is playing all the computer biz against itself and reaping the big bucks.