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Intel wants all segments
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May 21, 1998: 8:38 p.m. ET
New CEO Barrett says company is prepared to compete in all markets
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NEW YORK (CNNfn) - Intel Corp.'s new chief executive officer wants to position the chip making giant as a key player in all segments of the computer industry.
Craig Barrett, who had served as the company's president and chief operating officer, was named chief executive officer by Intel's board of directors Wednesday.
Barrett succeeds Andrew Grove, who remains the company's chairman.
Appearing Thursday on "Moneyline With Lou Dobbs," Barrett said Intel has recognized the popularity of the sub-$1,000 computer and positioned itself to compete in that segment.
"I think we can be competitive at the low end of the market where there is competition. We also see a lot of room at the high end of the market. Intel architecture is increasingly used in workstations and servers and there's not the same price competition in that market," he said.
Barrett said Intel will be able to keep its margins up by utilizing a wider variety of products targeting more segments and by using more efficient manufacturing technology.
One of the problems with the computer industry is its cyclical nature. Barrett said 1998 will see slower growth. Intel is responding to that by seeking new opportunities in growth markets such as electronic commerce, computer networking and computer graphics cards.(214K WAV)or (214K AIFF)
Intel sees mixed opportunities in Asia.
"The Asian market is split between countries with severe financial crises and countries like China and India where PC growth is very strong. In Korea, Japan and Indonesia, the growth rate is well below where it was a year ago," he said.
Barrett also responded to concerns over an investigation begun last fall by the Federal Trade Commission. Regulators were concerned that Intel's dominance in the PC market was keeping competitors from enjoying equal access to technology.
Barrett said FTC inquiries are normal at a company with a market share like Intel's and he is confident no problems will be found.
"We recognized about 10 years ago that we were in a unique position in the marketplace due to the success of our microprocessor business.
"We have trained our executives, sales force and everyone within the company on what we're allowed to do and not allowed to do. We think we are absolutely obeying all the laws and don't think the current investigation will result in a detrimental ruling to Intel," he said.
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Intel
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