ARM processors proved themselves better than x86 at the two tasks that are integral to personal, portable devices: lowering power consumption and customization. The dominant position achieved by the Microsoft-Intel duopoly over two decades yielded correspondingly high margins for both.īut smartphones changed the game. With its x86 processors, Intel worked itself into a more-than-comfortable position as part of the Wintel ecosystem. Tackling Intel’s failure to gain a significant role in the (no longer) new world of smartphones is a much more complicated matter. So he put an end to the impossible-to-justify adventure.
ONCUE INTEL TV
OnCue would never be an Apple TV “black puck”, a supporting character whose only mission is to make the main personal computers (small, medium and large smartphones, tablets and conventional PCs) more useful and pleasant. He saw that OnCue would neither make money by itself, nor stimulate sales or margins for its main act, x86 processors. Krzanich quickly moved from doubt to certainty. These slides must make fascinating corpospeak logic.) (If Mr Huggers happens to be reading this: I’d be more than happy to relieve you of the PowerPoints that you used to pitch the project to Intel’s top brass, not to mention the updates on the tortuous negotiations for content, and the reports from the user testing in Oregon. Late September, the project was put on hold and, last week, the news came that OnCue had been cancelled and allegedly offered to Verizon, whose V Cast media distribution feats come to mind…Įven before OnCue’s cancellation was made official, the well-traveled Erik Huggers appeared to show an interest in the Hulu CEO job. Indeed, to those of us who have followed the uneasy dance between Apple and content providers since the first Apple TV shipped in 2007, the Intel project sounded bold, to say the least. we are not experts in the content industry and we’re being careful.” Intel continues to look at the business model…. Then Krzanich stepped in, and applied a dose of reality: We found out that more than 1,000 Intel employees in Oregon had been engaged in testing the product/service. The Intel TV chief revealed no details about how the service OnCue would differ from existing competitors, or how much the thing would cost…but he assured us that the content would be impressive (“We are working with the entire industry”), and the device’s capabilities would be comprehensive (“ This is not a cherry-pick… this is literally everything”). To head the project, which was eventually dubbed OnCue, Intel hired Erik Huggers, a senior industry executive and former head of BBC Online.Īt the All Things D conference in February, Huggers announced that the TV service would be available later this year. The idea was to combine an Intel-powered box with content in order to serve up a quality experience not found elsewhere (read Apple, Netflix, Roku, Microsoft…).
Back in March 2012, the Wall Street Journal heralded Intel as The New Cable Guy. More important, Otellini’s admission unburdened his successor, Brian Krzanich, freeing him to steer the company in a new direction.įirst: House cleaning. That Otellini found the inner calm to publicly admit his mistake - in an article that would be published on his last day as CEO, no less - is a testament to his character. ” “…while we like to speak with data around here, so many times in my career I’ve ended up making decisions with my gut, and I should have followed my gut. And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought. It wasn’t one of these things you can make up on volume. “The thing you have to remember is that this was before the iPhone was introduced and no one knew what the iPhone would do… At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost. Apple had given Intel the chance to be part of the smartphone era, to supply the processor for the first iPhone… and Otellini said no : In last May’s The Atlantic magazine, Intel’s then-CEO Paul Otellini confessed to a mistake of historic proportions. But, after his predecessor missed the opportunity to supply the CPU chip for Apple’s iPhone, Intel’s new CEO must now find a way to gain relevance in the smartphone world.
ONCUE INTEL PC
Intel rode the PC wave with Microsoft and built an seemingly insurmountable lead in the field of “conventional” (PCs and laptops) microprocessors. Intel Is Under New Management - And It Shows
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