Intel CEO says he asked Steve Jobs' opinion before Infineon deal

Posted:
in iPhone edited January 2014
When Intel acquired the wireless unit of chipmaker Infineon, the company's CEO consulted Apple Chief Executive Steve Jobs, who was said to be "happy" with the deal.



Intel announced on Monday that it had agreed to buy the wireless division of Infineon for $1.4 billion. Infineon makes the baseband chip found in the iPhone, and has supplied chipsets for Apple's handsets since 2007.



On Monday, Paul Otellini spoke with Fox Business and was asked by Liz Claman how Apple feels about Intel's acquisition of Infineon. Otellini said he personally spoke with Jobs, and the Apple co-founder believed the deal was a smart move.



"Steve was very happy... The industry was abuzz that this business unit was on the market, and there were a number of competing companies for it," he said. "I think they're very happy that Intel won the bid."



He said having a presence in the iPhone, however, was not the "overwhelming factor" in the deal. He said the chips have a good revenue stream and Intel believes the wireless technology capabilities will strengthen Intel's portfolio.



Watch the latest video at video.foxbusiness.com



While Otellini's comments were positive this week, in the past his company has ridiculed Apple for relying on the ARM architecture to power its mobile devices. The company, in the past, publicly slammed the iPhone, stating that the device is not capable of accessing the "full Internet," and asserting that such functionality requires Intel-based architecture.



In addition to giving Intel a presence in the iPhone, the Infineon deal will also place the company, through its newly acquired products, inside the 3G-capable iPad. Years ago it was rumored that the chipmaker's low-power Atom processor could eventually make its way into the iPad, though that never came to be.



Instead, Apple decided it would make its own moves in the chipmaking business, through key acquisitions of PA Semi for $278 million in 2008, and Intrinsity this year for $121 million. Those purchases set the stage for Apple to build the custom A4 processor, based on the ARM architecture, found in the iPad and iPhone 4.
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Comments

  • Reply 1 of 27
    solipsismsolipsism Posts: 25,726member
    Otellini taking audience with Steve before making a deal? Murdoch inking a deal he apparently doesn’t like just to win favour with Jobs? This makes jobs sound more like the head of the Mafia than just a savvy business man… but I guess there isn’t much difference when you think about it. Did they kiss his Apple ring and rub the transplant scar of a Jobs idol, too?
  • Reply 2 of 27
    brucepbrucep Posts: 2,823member
    intel no matter what happens wins



    9
  • Reply 3 of 27
    Quote:
    Originally Posted by solipsism View Post


    Otellini taking audience with Steve before making a deal? Murdoch inking he a deal he doesn’t like just to win favour with Jobs? This makes jobs sound more like the head of the Mafia than just a savvy business man… but I guess there isn’t much difference when you think about it. Did they kiss his ring and rub the of the transplant scar of a Jobs idol, too?



    Quote:
    Originally Posted by brucep View Post


    intel no matter what happens wins



    9



    I wish the damn stock would move, though.... I am tired of it going sideways forever (and McAfee was a puzzling and inexcusable waste of shareholder money).
  • Reply 4 of 27
    Good job with AI referring to Otellini by his last name only, before ever mentioning his first name. I guess that's the sort of stuff that happens when "jounalism" consists of copying and pasting entire chunks of articles from other sources. Can we just call this site a news aggregator, and get it out in the open?
  • Reply 5 of 27
    I didn't think they would actually bag this bid. But they did it. Let's see what happens. Hopefully this time around that have the pieces to actually make a great dive in to the wireless biz. What do you guys think?
  • Reply 6 of 27
    Quote:
    Originally Posted by AppleStud View Post


    Good job with AI referring to Otellini by his last name only, before ever mentioning his first name. I guess that's the sort of stuff that happens when "jounalism" consists of copying and pasting entire chunks of articles from other sources. Can we just call this site a news aggregator, and get it out in the open?



    Really? that's your beef? AI is doing a great job and I find they have great original material.

    It's so easy to criticize in the internet age... Just go out and create your own website.
  • Reply 7 of 27
    I think everyone should get Steve Jobs' permission to do business. After all, apple stears the entire business world.
  • Reply 8 of 27
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by anantksundaram View Post


    I wish the damn stock would move, though.... I am tired of it going sideways forever (and McAfee was a puzzling and inexcusable waste of shareholder money).



    Most of these acquisitions by large companies seem to be a monumental waste. Most of these companies pay way too much for, IMO. If the purchase doesn?t pay out then it?s obviously a net loss. And it really irks me when I read and hear people stating that companies should buy something simply because they can. I don?t know of any financially sound individual that pushes their pocketbook to the brink with the assumption that they?ll just get more.



    BTW, I sold my Intel stock years ago.
  • Reply 9 of 27
    Quote:
    Originally Posted by solipsism View Post


    Otellini taking audience with Steve before making a deal? Murdoch inking a deal he apparently doesn?t like just to win favour with Jobs? This makes jobs sound more like the head of the Mafia than just a savvy business man? but I guess there isn?t much difference when you think about it. Did they kiss his Apple ring and rub the transplant scar of a Jobs idol, too?



    What are people smoking today? First off, you should not believe everything you read. Secondly, comparing Jobs to the godfather is a bit far fetched.

    I think the truth is somewhere in between. Besides, business is about relationships too you know. Let's not get carried away here people...
  • Reply 10 of 27
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by replicant View Post


    What are people smoking today? First off, you should not believe everything you read. Secondly, comparing Jobs to the godfather is a bit far fetched.

    I think the truth is somewhere in between. Besides, business is about relationships too you know. Let's not get carried away here people...



    That?s what you took from that? The emoticon wasn?t a give away? And you take issue with a jokey comment about the Mafia and not a jokey comment about Steve Jobs as Buddha?
  • Reply 11 of 27
    kiweekiwee Posts: 102member
    Apple buys a lot of Intel hardware. Core i3-i7 and others. Millions of units.

    To not ask them before scooping up one of their main suppliers would be strange.



    Maybe Jobs doesn't like the idea.

    AMD for Macs across the board. Not something Intel want to see happen.
  • Reply 12 of 27
    Quote:
    Originally Posted by solipsism View Post


    That?s what you took from that? The emoticon wasn?t a give away? And you take issue with a jokey comment about the Mafia and not a jokey comment about Steve Jobs as Buddha?



    I missed the jokey comment but it follows the same line of thinking...

    Back to the point, this acquisition is probably good for Apple since they seem to have a good relationship with Intel. I am looking forward to seeing Apple use a bit more of its massive capital to execute on that "game changer" they referred to a while back...
  • Reply 13 of 27
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by replicant View Post


    I missed the jokey comment...



    Because text limits inflection and forums are typical read quickly emoticons are supplied to indicate tone.
  • Reply 14 of 27
    Quote:
    Originally Posted by solipsism View Post


    Otellini taking audience with Steve before making a deal? Murdoch inking a deal he apparently doesn?t like just to win favour with Jobs? This makes jobs sound more like the head of the Mafia than just a savvy business man? but I guess there isn?t much difference when you think about it. Did they kiss his Apple ring and rub the transplant scar of a Jobs idol, too?



    Quote:
    Originally Posted by solipsism View Post


    Because text limits inflection and forums are typical read quickly emoticons are supplied to indicate tone.



    That's so weird. I didn't see the smiley face when I read your post.



    As for Murdoch, what's with the fan dance for Steve? Just set up whatever business unit you want, and make your gawddammned iPhone and iPad apps, Apple will obviously approve them if the basic rules are followed. Heck, I'm sure Apple would love to start running iAds in Murdoch's apps.



    Can someone explain to me why Murdoch needs to "win favour"? I know it's been reported as such in the media. It is absolutely baffling.
  • Reply 15 of 27
    Quote:
    Originally Posted by brucep View Post


    intel no matter what happens wins



    9



    Right on, Yoda.
  • Reply 16 of 27
    Quote:
    Originally Posted by solipsism View Post


    otellini taking audience with steve before making a deal? Murdoch inking a deal he apparently doesn’t like just to win favour with jobs? This makes jobs sound more like the head of the mafia than just a savvy business man… but i guess there isn’t much difference when you think about it. Did they kiss his apple ring and rub the transplant scar of a jobs idol, too? :d



    Kneel Before Jobs!
  • Reply 17 of 27
    kibitzerkibitzer Posts: 1,113member
    So what would we expect the Intel CEO to say on Fox in responding to a tricky question? No point antagonizing a big customer. You can bet that Otellini called some other big Infineon customers, too. That's basic good business.
  • Reply 18 of 27
    Quote:
    Originally Posted by solipsism View Post


    ...

    BTW, I sold my Intel stock years ago.



    I'm quite happy with my IBM stock
  • Reply 19 of 27
    Quote:
    Originally Posted by replicant View Post


    Secondly, comparing Jobs to the godfather is a bit far fetched.





    Until you wake up one morning and find a dead PC in your bed!



    "Made me an offer. I couldn't refuse!"



    Sept 1st, Jobs keynote of the new iPod line-up and the newly designed LCD screen, square form factor, will be introduced by Jobs in the following way...



    "Say hello, to my little friend!..." (you knew that was coming didn't you!)
  • Reply 20 of 27
    sheffsheff Posts: 1,407member
    Paul Otellini is an awesome CEO. I love what he has done with Intel since he became COO and later CEO. Intel has been a very good partner for Apple during the transition, and I think it was in large part due to Paul. I guess after the two companies grew farther apart with A4 and the whole no nVidia and we will take our time delivering Core iXs to Apple, Intel found a new way to keep the partnership going.





    Let's hope this won't be used as a lever if Apple decides to test their luck with AMD.
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