With the PC market contracting for the first time since 2001, Intel's once leading position as a vendor of semiconductors has left the company vulnerable as consumers increasingly shift to mobile and tablet devices. Bloomberg reports
today that Intel CEO Paul Otellini will retire in May, three years earlier than the mandatory date, as the company looks to transition to new realities in the technology sector.
Intel, which in the past has drawn from internal candidates to appoint new CEOs, will consider both internal and external candidates in a private process conducted by the board, Bloomberg reports.
Otellini began his tenure as CEO in 2005, when Intel-powered PCs held a comfortably wide share of sustained sales.
The market for smartphones is set to grow by 34.5% over the next year, according to sources in the report, meaning that Intel will likely replace Otellini with a candidate committed to establishing a foothold in this market.
At least one analyst mentioned in the report, Doug Freedman of RBC Capital Markets, believes Intel should strongly consider bringing in someone from the outside to turn things around. Doing so will be difficult for a company of Intel's size, however, unless the board can draw in someone with experience from a similarly large company.