Intel undergoes major shake-up
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Intel reorganises its corporate structure.
19 January 2005 Chip maker Intel has reacted to a string of missed delivery dates and corporate missteps with a major reorganisation of its business units.
Intel will create five new business units: mobility; enterprise; home; health; and global markets. This, it hopes, will enable it to streamline the development and marketing of new chips. The new groups will replace the existing architecture and communications groups.
"The new organization will help address growth opportunities by better anticipating and addressing market needs, speeding decision making, and ensuring world-class operational excellence," said Intel president Paul Otellini.
Intel hopes the reorganisation will help it recover from previous product failures, such the cancelled Pentium 4 microprocessor chip in 2004. Problems were blamed on design and engineering faults.
Other recent problems included a delay in a new line of notebook computer chips and the recall of a line of desktop chips.
Eric Ross, an analyst at ThinkEquity Partners in New York, said: "Intel's been fantastically unsuccessful in breaking into new markets. They're putting labels on things they hope will be big drivers in the future."
Ross added that Otellinin is hoping to replicate the success of Intel's Centrino chips used in notebook computers. Features, such as longer battery life and sharper graphics helped increase annual sales at Intel to a record $34 billion last week.
