Intel CEO sees new markets for growth
Cell phones, consumer electronics and emerging markets will be the next big engines of growth for Intel, the CEO said at a conference Thursday.
Intel's president and chief executive officer Paul Otellini sees cell phones, consumer electronics and emerging markets as the next big engines of growth for Intel.
Speaking at a conference in New York City Thursday, he told financial analysts that he sees three $10 billion chunks of business that Intel could address in the next several years.
The first major opportunity will come from a proliferation of Internet-enabled consumer electronic devices. By 2011, the entire consumer electronics market will be worth $60 billion, he said. Otellini believes that about $10 billion of that market will require technology to connect those devices to the Internet.
The next major market consists of mobile phones and portable devices. Like the consumer electronics market, the mobile device market will grow to about $60 billion a year by 2011. And Otellini believes that about $10 billion of that market will require some kind of chip technology to connect those devices to the Internet.
The final $10 billion chunk of business will come from emerging markets where increasingly Internet connectivity will become critical for economic success.
While these markets offer great opportunity for Intel, which still generates the bulk of its revenue from supplying desktop and laptop chipsets, these new markets will require Intel to develop low cost and low powered technology.
"We need to address and enable these (new markets)," he said, "But we need to make solid profits as we go after them."