Intel Corporation (NASDAQ:INTC) has hired Tom Lantzsch away from rival ARM Holdings plc (ADR)(NASDAQ:ARMH)and made him the boss of its Internet of Things (IoT) business segment. The move adds to Intel’s recent high-profile hires from rival chipmakers. Intel plucked Venkata “Murthy” Renduchintalafrom Qualcomm, Inc. (NASDAQ:QCOM)a year ago and made himthe leader of a group of businesses that tough on client computing, systems architecture and IoT.
Lantzsch is set to join Intel in January in the capacity of SVP and general manager of the IoT division. He was recently ARM Holdings’ EVP of strategy.
ARM Holdings leads the smartphone chip space
Most smartphones are powered by chips based on ARM technology. Intel missed the smartphone boat, but is keen to take full advantage of IoT, which is one of its main areas of focus lately. The others are data center, memory and security. Intel is hoping that Lantzsch will give a boost to its IoT business so that it can take a leading position in powering billions of smart devices expected to connect to the internet in the coming years.
Pulling Lantzsch from ARM could also weaken the rival and improve Intel’s chances of leading the IoT chips race, especially as it gains insights of the competitor’s strategy. Intel has been chasing ARM and Qualcomm in the smartphone chip market with little success.
Monetizing a connected world
Intel is looking to monetize a world where virtually everything is connected to the internet and the company’s IoT ambitions include serving the autonomous vehicle market. The company is partnering with BMW and Mobileye NV (NYSE:MBLY) in developing fully autonomous cars that can enter city roads by 2021.
Intel also recently said it would invest $250 million to develop autonomous car technologies. Ford Motor Company (NYSE:F), Alphabet Inc (NASDAQ:GOOGL) and Tesla Motors Inc (NASDAQ:TSLA) are at various stages in developing fully autonomous vehicles.
Intel delivered a pleasant surprise in 3Q16 as EPS of $0.80 easily beat the consensus estimate that called for EPS of $0.72. Revenue of $15.78 billion also topped the consensus of $15.58 billion.