On the Call: Intel CEO Brian Krzanich

On the Call: New Intel CEO Krzanich discusses whether cheap processors will steal sales

Associated Press

Intel Corp.'s new CEO Brian Krzanich vowed Wednesday to put equal emphasis on the company's long-time mainstay, "Core" processors for PCs, and on the upcoming Bay Trail line of processors for tablets and smartphones. On a conference call after the release of second-quarter results, an analyst asked Krzanich whether the cheaper Bay Trail processors might steal, or "cannibalize" in industry parlance, sales of the latest generation of Core processors, dubbed "Haswell."

QUESTION: I think a driving concern in the investment community is whether Bay Trail is going to be so good that it starts to cannibalize Haswell. I guess I'd like to get your thoughts on how you can segment the market properly. To what extent you think you're a slave to market forces and to what extent do you think you can secure the Core business, even as you try to get more aggressive on Bay Trail and Atom?

RESPONSE: Our view right now on Bay Trail is that we don't believe it will be cannibalistic in that nature. We believe what it really does is it allows us to get into these markets that we are not in in a big way today ... the sub-$400, sub-$300 in some cases, clamshells and touch-enabled convertibles and two-in-one devices. In tablets, $199 and below. Some you're going to see even lower, below $150 and much below that as we go through the holiday season.

So Bay Trail really first and foremost we believe gives solid performance, solid battery life relative to the competition in price points and markets that we're simply not in in a big way today. So we look at it mostly as an expansive.

The other thing that I think is a point is Haswell, as we said, is the largest battery-life improvement in Intel's history along with great performance. And it's providing products that have Core-level performance that will be fanless for the first time. So we still believe that there is a strong drive for performance in segments of this market that look for high-def video performance, gaming, all of the things that if you actually look at a lot of the tablet usage, even, people are doing more and more and definitely in these two-in-one and convertible devices, people look for that kind of application. So we believe that Haswell allowing us to go down into those better price points and lower powers, will give us the performance option to keep people up into those regions.

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