Intel Corporation (NASDAQ:INTC) CEO Brian Krzanich appeared confident of his company’s strategy regarding mobile while talking to CNBC’s John Fortt.
Asked about valuations and whether there may be bubbles in certain areas, Krzanich told Fortt that he sees these as people’s projections of growth. He noted that while there may be areas that have very high valuations where people expect growth, he actually thinks that these spaces will continue to grow.
However, he mentioned that some discussions inside Intel Corporation (NASDAQ:INTC) point to areas such as data centers and consumer products as areas that are starting to level off and have their valuations become a bit more normalized and stabilized.
Fortt also asked the Intel Corporation (NASDAQ:INTC) CEO about Internet trends, certain areas like India, Indonesia and Nigeria where mobile is growing rapidly, and how intel plans to monetize and gain share in these areas.
Krzanich stated Intel Corporation (NASDAQ:INTC) has an advantage over other companies because they have products across the full spectrum. He said that the company has a lot of products that these regions need and eventually, people there will be spending more on costlier products.
“The first thing that those countries that are seeing a large amount of growth require is infrastructure. They need data center backbones. They need the internet infrastructure. So that’s a place where we first come in and help and those are areas that are strong margins. Then we come in afterwards with the consumer products and I think what you’ll see is that just like in China. People thought the same thing was going to happen as China started to emerge. Where was the margin? But if you look at it, the average selling price and percent of core products that we sell in China is actually as strong as anywhere else in the world. What happens is people tend to buy up as they become technology savvy.”
Intel Corporation (NASDAQ:INTC) CEO also told Fortt, as an example of how they are becoming market driven, that they are still the only company that can enable iOS, Chrome, Android and Windows to run on the same device. He also expressed confidents in the company’s future in tablets saying:
“Stacy [Stacy Smith, CFO of Intel] and I have said that we believe over the long-term, we can make this margin neutral to us. You see products like SoFIA that are specifically designed for the entry level smart phone, entry level tablets. You saw our announcement yesterday with Rockchip, a partnership to build additional products that are targeted toward these specific markets that allow us to go back into the margin-positive area.”
Watch the videos below where the CEO of Intel Corporation (NASDAQ:INTC) also talks about embedded systems and a robot they demonstrated during the first Code Conference: