Intel CEO Paul Otellini to retire early

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Otellini will retire in May at the age of 62, earlier than the company's mandatory retirement age for CEOs of 65.  (Reuters) Otellini will retire in May at the age of 62, earlier than the company's mandatory retirement age for CEOs of 65. (Reuters)
SummaryOtellini will retire in May at the age of 62, earlier than the company's mandatory retirement age for CEOs of 65.

are expected to decline slightly this year, the first annual drop since 2001.

The top chipmaker is currently running its factories at less than 50 percent of capacity, redirecting unused space and equipment to be used for more cutting-edge production lines still being built.

The Santa Clara, California-based company has long been king of the PC chip market, particularly through its historic Wintel alliance with Microsoft Corp, which led to breathtakingly high profit margins and an 80 percent market share.

But it has struggled to adapt its powerful PC processors for batttery-powered smartphones and tablets. Its market share for smartphones is less than 1 percent, trailing Qualcomm Inc , Samsung Electronics Co Ltd, ARM Holdings Plc and others. That leads some investors, already concerned about a lackluster global economy, to ask if Intel's supremacy has come to an end and whether the company's potential for profit and revenue growth may be limited.

Intel's shares closed up 0.3 percent at $20.25 in Nasdaq trading on Monday. Shares of Advanced Micro Devices, Intel's smaller rival in PC processors, rose 3.22 percent to $1.92.

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