Intel and Apple: Intel Corporation (NASDAQ:INTC) CEO Paul Otellini has done a lot of good for the company over the years. With today being his last day on the job, we thought it would be a good idea to take a look at the past. And we have a great story about Otellini and Apple Inc. (NASDAQ:AAPL) that is sure to knock your socks off.
In a recent interview with The Atlantic, Otellini sat down to discuss his legacy, the future, and so much more. This included a brief discussion about Intel Corporation (NASDAQ:INTC)’s work with Apple.
As you probably know, Intel eventually won over Apple Inc. (NASDAQ:AAPL)’s Mac business. This was a big deal for both companies, and one that turned into a great working relationship.
But did you know that Intel had the change to get involved with the then-unreleased iPhone? Rather than take full advantage, Otellini decided that this was not in the best interest of the company.
In his defense, there was no way of knowing at the time that the Apple iPhone was going to be so popular.
In the interview, here is what he had to say about his time at Intel Corporation (NASDAQ:INTC), and specifically, the decision:
“We ended up not winning it or passing on it, depending on how you want to view it. And the world would have been a lot different if we’d done it. The thing you have to remember is that this was before the iPhone was introduced and no one knew what the iPhone would do… At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost. I couldn’t see it. It wasn’t one of these things you can make up on volume. And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought.”
As disappointed as Otellini is with the company’s decision to get involved with the Apple Inc. (NASDAQ:AAPL) iPhone, at the time it appeared to be the right thing to do. If the iPhone would have flopped, he would have looked like a genius. However, this is not how things worked out so there has to be some level of regret.
He added that his “gut told me to say yes,” but he decided to pass on the opportunity nonetheless.
Otellini does not have to apologize to anybody for his legacy at Intel Corporation (NASDAQ:INTC). However, his decision to pass on being part of the original Apple Inc. (NASDAQ:AAPL) iPhone was a mistake.
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