Intel CEO Paul Otellini to retire next year

Intel CEO Paul Otellini will be retiring in May 2013 at the company’s annual shareholder meeting. He will step down from his position as CEO as well as a director on the company’s board, Intel has announced. This would mark the end of close to 40-years of working at Intel, the last five of which were spent at the helm. Intel is looking at both internal and external candidates for the top job.

During Otellini’s reign, Intel strengthened its position in the PC space during turbulent times as the industry was going through a transition period. However, bigger challenges remain in front of the company as PC shipments have been declining while consumers spend on tablets and smartphones. Intel took a few missteps with its mobile chipset strategy and is now trying to find its way back into the low-margin but high-value product segment that is dominated by companies like Britain’s ARM, Qualcomm and Samsung, among others.

Otellini’s successor would be handed a clear brief that would include kickstarting the company’s smartphone and tablet strategy while at the same time take Intel to the next generation of personal computing, the seeds for which have already been sowed. Earlier this year Intel launched its first Android smartphone running on an Atom processor codenamed Medfield, but its success is yet to be proven.

Intel also announced it is promoting three senior leaders to the position of senior vice president – Renee James, head of Intel’s software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.