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On the Call: Intel CEO Paul Otellini

NEW YORK (AP) -- PC sales plunged in the first quarter, which is bad news for Intel Corp., which at supplies the processors for 80 percent of PCs. On a conference call with analysts Tuesday, CEO Paul Otellini said Intel is pinning its hopes on this year's new processors, which include Haswell for full-size laptops and desktops, and Bay Trail for smaller, cheaper models.

QUESTION: In the past, Intel was successful because its customers were successful. Right now the PC ecosystem is really not in the greatest state of health. What can Intel do to make its customers more successful?

RESPONSE: Continue to give them the tools to innovate. And I wouldn't paint the entire customer base with the same brush. Look at last quarter even inside the PC space: Lenovo outperformed everybody else and had a very good year-on-year set of numbers in a down year. Apple continues to do well. Subsets of customers in different segments are also doing very well in terms, say those providing products into the Internet data centers.

What I see is a tremendous amount of innovation. Particularly at the (design companies) and Taiwanese (manufacturer) side where the ability to miniaturize and bring things into extremely thin form factors is really as revolutionary a change as I've seen in my time in this industry. So I think what we can do is give them products like Haswell and Bay Trail to innovate around. Help them with other feature sets like voice and speech that go around them. Just help them build better products.