The appointment of Brian Krzanich as chief executive of Intel is a sign that the firm is happy to stick with the traditional strategies that have served it so well for so long, despite the firm's failure to make much headway in the mobile market.
Krzanich's appointment follows a long line of internal hires by the company. Analysts said that in spite of Intel's troubles in the mobile chip market, the hire makes sense with the company's strategy historically.
"The most important thing that Intel showed today was that it decided to stay true to tradition," Gartner principal research analyst, Sergis Mushell, told V3.
Mushell says that the Krzanich appointment shows that Intel has decided not to disrupt what it has done in the past. Intel has never picked an outsider to run the company and Krzanich has over 30 years at the firm.
Many had speculated that Intel would go outside its ranks to hire its next chief executive. But Mushell believes that the hire makes sense for Intel, as the company's large business in chip manufacturing makes Krzanich the right man to lead Intel. "Intel has doubled down on manufacturing. If you are doubling down then you want to bring in a person who is familiar with that bet," he said.
Krzanich takes over as chief executive officer following a lengthy career in Intel's manufacturing department. He worked his way up the ranks before taking over as the company's chief operating officer last year.
Following his hire, many believe that the company will increase its output in manufacturing. Intel currently serves as a foundry for smaller chip makers and the appointment of Krzanich could lead to new avenues in that market.
Much has been said about Intel's failure to capitalise on the mobile market. Many have said that Krzanich's predecessor Paul Otellini left Intel because of his failure to adapt to the rise of the smartphone and tablet.
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