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Intel CEO Paul Otellini on the company’s earnings and the future of the company in smartphones and ultrabooks.
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-- thousand episode episode is happening today look back and see if -- -- which CEO stepped up to the plate were the most honest to our shareholder investor viewers.
Intel definitely right up there at the top -- joining us now on -- Fox Business exclusive on the phone.
Is Paul Otellini the CEO and president of Intel hey Paul thanks for being here.
Well you're welcome -- congratulations on number 1000.
Thank you very very much and you know look at say congratulations on your numbers you came out of earnings yesterday I mean you beat once again that is a classic case of what -- -- reports lately.
The markets -- saying -- but you've been so amazing for seven quarters.
I mean as a CEO -- a leader what do you think when you see that had a reaction.
Well in the first -- of a down day in the market yesterday and today -- so you know I think part of it is that we're I'm I'm.
You know I'm comfortable what happened and how the news was received the numbers -- we're we're we're right we said they would be in the -- you know the guidance for the rest of the year.
You know it began in general up a look back over the last ten or 1218 -- -- Total shareholder return has outperformed virtually everyone so we've we've done pretty well.
-- 04 years you've been coming on the program over the 1000 episodes of both through all of these interviews one of the things that amazes me I was thinking back.
To one of the original ones where you announce the -- first generation of atom chips those.
You know hot better usage of energy chips and today -- announced that the first atom powered Smartphone will come out -- of the market in India the -- solo on Monday.
I found it really interesting that you go with India first in Indian carrier tell me about this at how much it would add your bottom line why India.
But it -- we have a number of customers a bit bit of announced intentions in the rolling out at various points in time.
Over the first second third -- this year.
Comes -- and it happened to be the right time that there's.
I need first heard -- portable mobile Smartphone and India they have a great network and they wanted a superstar product is the launch west.
And and tell me what you at a price point -- this solo found.
Actually.
I I don't know what they launched at -- to deduct that question okay that's fine but it's only its ability to call want all the leaders of yeah all these -- -- -- whatever they -- their.
There subscribers as part of -- contract.
You don't -- CE.
ES Consumer Electronics Show in January you held up on Fox Business a Smart phone -- we're dying to know -- it was powered by Intel when we'll see the first Smartphones on the shelves here in the US that are powered by Intel chips.
Well -- our customers are gonna announce that -- -- you know who want the people we've announced with very in power.
That -- BP.
So there are coming out salmon and looking at the numbers you know using and one of the issues the perception was that your profit margins and in fact that your -- a lot of plants and factories.
Maybe squeeze those margins is that something that'll be smoothed out over the current quarter.
Doesn't this just doesn't know one quarter start up a really where we're at the the new product have to absorb the caught the ball club.
Underutilized capacity -- it starts up it happened every two years.
As we as we go through -- this start up this -- bigger than.
Than it has been because it you know the bigger set up factories but.
At the end of the day the new factories build better products at lower cost but lower power so that there's a good thing.
Speaking of new October in our three days in the valley coverage you -- that you showed us those ultra books which I fell in love with I don't know as the -- bookcase or racist but you have so many partnerships.
Lenovo Dell.
Hewlett-Packard their 21 products a hundred in the pipeline for these -- books.
You've come out -- very bold statement that 40% of notebook sales by the end of the year will be ultra books.
Where are the hottest selling points right now what's selling wonderfully and where do you look at sixty that's why I believe it'll be 40% is accused.
But it is portico of the consumer notebooks and hand them these things will hit the mainstream price points from 699 on up.
They'll be very affordable to a lot of -- -- have touch.
One window they comes out that the event of touch.
A lot of them are hybrid devices that are you know somewhere between marrying -- the convenience of a tablet.
And the and the productivity and performance of a notebook into a single device.
Right.
The cool thing about -- -- and I don't know people know instant on there's no pressing of a button.
There's no waiting for something that that mean would you -- these ultra books they turn on within literally less than -- second I found it fascinating.
Yeah I looked at it had talked always connected so that -- -- current you know it'll have your email will think they're ready when you open it up.
I know we're tired we're so we're so instant now but that's that's really it was certainly an attractive proposition.
Finally you know I'm again I'm going back -- -- very first interview which was June of 2008.
I don't know I thought for sure you're gonna cancel that we're all these kinds of news -- swirling around Department of Justice all that is now in the history books for Intel as you guys have grown so exponentially and you ended up being one of the first two.
Tech companies that Warren Buffett finally invested in after all of these years are you could go to the annual shareholder meeting for Berkshire Hathaway -- You're welcome -- I was invited yet -- well that's.
While we -- we hope to see you and we'll be watching all of this and much more Paul thank you for.
All your support over the years here at fox this.
So you're -- a great job and congratulations.
Thank you so much Paul Otellini and the CEO and president of Intel saying that whatever concerns came out of that earnings report with a profit margins being squeezed.
It's done certainly for the current quarter and next it's a cyclical issue and so much.
