Intel Corporation (NASDAQ:INTC) CEO Brian Krzanich has admitted that the company has made a mistake over their strategy regarding tablets and smartphones.
In an interview at the first Code Conference, Walt Mossberg asked Krzanich whether the he was worried that people are spending a very significant amount of time on their smartphones and tablets which are predominantly powered by processors running on ARM Holdings plc (ADR) (NASDAQ:ARMH) technology. Being candid about what Intel Corporation (NASDAQ:INTC) wanted in the past, he said that the company wanted the advancement of computing to stop at the laptop form factor.
“If you look at computing all through history, it’s gone continuously smaller, more mobile, (and) more connected. If you go back, we’ve moved it from mainframes, to desktops, to big luggable laptops, to laptops. Intel wanted it to stop there but the market kept moving […] There was a belief that tablets would be a consumption device only (and) that people would come back to the laptop and the PC. There were heavy debates within Intel and it took a while for us to accept and acknowledge that data. Companies make mistakes,” Brian Krzanich said.
It appears, however, that Intel Corporation (NASDAQ:INTC) is ready to strike, not necessarily in just finding the next generation of computing devices. Krzanich told Mossberg that he does not want the company to leapfrog a generation of devices, presumably referring to tablets and smartphones. According to the Intel Corporation (NASDAQ:INTC) chief, the company is currently pushing for lower and lower power consumption for its chips and they are moving into wearables and the Internet of Things.
Furthermore, he said that the chipmaker is evolving to be market-driven:
“The other vision I have is we’re driving the company to be more market-driven. We have to have an outside-in point of view. We have to move where the market is moving. That’s really the other focal point and that’s what moves us into these other areas.”
Watch the video below where the Intel Corporation (NASDAQ:INTC) CEO also denies that they are moving out of their core businesses and also discusses their relationship with Microsoft Corporation (NASDAQ:MSFT).