Intel's CEO Brian Krzanich On How The Company Is Trying To Strike The Right Balance Between Chips And New Businesses

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The one problem that Intel Corporation INTC investors have had in the last few years is that even though the company has spread its wings to many areas, its core business still remains chips.


Intel Corporation CEO Brian Krzanich, was on CNBC’s show “Mad Money” recently to discuss how he is planning to change that.


Generating IP And Taking It


“Our business model is that we generate IP (Intellectual Property) usually around the PC and the data centre,” Krzanich said. “And then we take that into a broad range of devices from the PC down all the way to the IoT (Internet of Things) and wearables and one example we have about now is our real sense camera.”


Real Sense Camera


He continued, “And our real sense camera is something that came out of our desire to get people off their keyboard, off their mouse and not in just use of their hands, but what we have done is taken that intellectual property now and done it so that it can now look out in the world and spread it well beyond it.”


The Right Balance


On whether Intel is trying to generate more of its revenues from IoT and data centres han conventional businesses, Krzanich said, “I think of Intel as a company that’s driven by two things. Moore’s law and compute and so what a lot of people don’t know is that even in the first-quarter roughly 40 percent of our revenue and 60 percent of our margin was generated by data centres, IoT and memory”


“And that is the area that we are trying to really be a growth and so we are getting to our place where we are able to get that to where the company is more balanced between the classical PCs and these other areas,” Krzanich concluded.

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Posted In: CNBCJim CramerMedia
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