Nov 20, 2012

Book Worms? Medieval Tomes Hold Surprising Fossil Record




A smattering of white spots found among the ink in medieval books aren't just printing errors — they're actually an amazingly detailed "fossil" record of European beetles, new research finds.
The dots represent spots, or wormholes, where hatching beetleschewed their way out of the woodblocks used to print art and illustrations between the 1400s and 1800s.
This literary record reveals that two species that now overlap inWestern Europe once kept their distance from each other along the entire continent. Without evidence of the wormholes, this history would have been impossible to discern, said study researcher Blair Hedges, a biologist at Pennsylvania State University.
"All of these findings about the distribution were from the wormholes," Hedges told LiveScience. "There were no specimens in jars or, in this case, pinned or anything. There was just no information that we had."
Biological bookworms
European printers started using woodcuts, or carved wood blocks, to produce printed illustrations in the 1400s. (By then, that craft was already centuries-old in Japan and other parts of Asia.) Hardwood with a fine grain was typically used for the carved blocks, which would then be inked like rubber stamps to produce an image on paper or fabric.
Unfortunately for bookmakers but luckily for modern biologists, hardwoods such as box, pear or apple are a favorite of certain species of beetle, which leaves its larvae in the wood to pupate. Once the larvae grow into beetles, they gnaw their way out, leaving distinctive round holes that vary in size depending on the species. [See images of the damaged woodcuts]
Such was the fate of many a woodcut left in storage. Between the first edition and later printings, more and more round white dots would appear in books, Hedges said, corresponding with the beetle infestation of the woodcut. These proliferating marks provide a sort of non-stone fossil record of where beetles lived at any given time.
"It's very hard to get that kind of detailed information," Hedges said. "These are about the best fossils you could ever hope to find, and that is fossils with exact dates, like 1498, in exact locations, like Paris or Amsterdam."
Fossil record, in print
By surveying medieval tomes in library collections and in online high-resolution digital archives, Hedges was able to measure the white spots. In 473 prints dating from 1462 to 1899, he found thousands of spots, including 3,263 perfectly round holes created when beetles exited the wood block and 318 meandering "tracks" created as beetles chewed their way along the wood grain. This kind of left-behind evidence of living organisms is called trace fossils.
In books printed in northern cities such as London, the holes tended to be small, averaging about 0.06 inches (1.44 millimeters) across. In southern European cities, they were larger, averaging about 0.09 inches (2.3 mm) across. Distinctive tracks also gave away southern species.
These measurements reveal that in the north, the woodcut-chewer was the common furniture beetle (Anobium punctatum). In the south, the Mediterranean furniture beetle (Oligomerus ptilinoides) was the culprit. Surprisingly, the two never met. They stayed on either side of a line that cut across France, hugged the border between Switzerland and Germany and then followed the boundary between Italy and Austria.
"There was no gap in between," Hedges said. "They literally came right up to each other, certainly within miles. I could not find any evidence that they overlapped."
That sort of boundary is very unusual in species distribution, he said. Because climate varied over those 500 years, the stable border between northern and southern species probably had to do with the fact that both beetles prefer the same kind of wood.
"They were trying to avoid competition, so they weren't overlapping," Hedges said.
Today, with increased trade in furniture and lumber, both beetles are found throughout Western Europe. In Eastern Europe, the situation looks a little more complex, Hedges added. And he hasn't even had time to get into American woodcuts or other regions of the world.
"Japan and China did woodcut printing even earlier than Europe," he said. "There's a lot of potential for discovering other species and other interactions."
Hedges published the findings today (Nov. 20) in the journal Biology Letters.

How new Kindle Fire compares with rivals




Amazon.com Inc. started shipping a larger version of its Kindle Fire HD tablet computer on Thursday. Here's a look at how it compares with the iPad and other tablets with similar screens.
Amazon.com Inc.'s Kindle Fire HD 8.9":
— Price: $299 for 16 gigabytes of storage, $369 for 32 GB.
— Screen size: 8.9 inches diagonally
— Screen resolution: 1920 by 1200 pixels, at 254 pixels per inch.
— Weight: 1.25 pounds.
— Cameras: Front-facing camera.
— Battery life: 10 hours.
— Operating system: Modified version of Google's Android
Pros: Cheap and portable. Convenient access to Amazon store. Dolby audio. Available with access to fast 4G wireless broadband networks, for $499 (starts shipping next Tuesday).
Cons: Small selection of third-party applications available from Amazon. No rear camera for taking video and photos.
Apple Inc.'s iPad:
— Price: Starts at $499 for 16 gigabytes of storage, goes up to $699 for 64 gigabytes, more for versions with cellular data access. (Apple still sells the older, iPad 2 for $399.)
— Screen size: 9.7 inches diagonally
— Screen resolution: 2048 by 1536 pixels, at 264 pixels per inch.
— Weight: 1.44 pounds
— Cameras: 5-megapixel camera on back and a low-resolution camera on front, for videoconferencing
— Battery life: 10 hours.
— Operating system: Apple's iOS
Pros: Unmatched access to third-party applications, high-quality Apple software and the iTunes store. Widest range of cases and accessories available. Available with access to fast 4G wireless broadband networks, starting at $629.
Cons: Data storage cannot be expanded with memory cards.
Google Inc.'s Nexus 10
— Price: $399 for 16 gigabytes of storage, $499 for 32 GB
— Screen size: 10.1 inches diagonally
— Screen resolution: 2560 by 1600 pixels, at 300 pixels per inch.
— Weight: 1.33 pounds.
— Cameras: 5-megapixel camera on back and a low-resolution camera on front, for videoconferencing
— Battery life: 9 hours for video playback, 7 hours for Web browsing.
— Operating system: Google's Android
Pros: Access to a variety of games, utilities and other software for Android devices, though not as extensive as apps available for iPad. Longer, narrower screen better suited to movies. Cheaper than newest full-size iPad.
Cons: Integrates with Google Play store, which is still new and isn't as robust as Apple or Amazon's stores. Data storage cannot be expanded with memory cards. No option for cellular wireless broadband.
Samsung Electronic Co.'s Galaxy Tab 2 10.1:
— Price: $399 for 16 gigabytes of storage
— Screen size: 10.1 inches diagonally
— Screen resolution: 1280 by 800 pixels, 149 pixels per inch
— Weight: 1.24 pounds
— Cameras: low-resolution front camera, 3-megapixel back.
— Battery life: 11 hours.
— Operating system: Google's Android
Pros: Storage is expandable with microSD memory cards. Can act as a universal remote control for an entertainment center. Option for wireless broadband starting in November.
Cons: Selection of third-party applications not as good as iPad's, but wider than Kindle. Screen resolution lower than iPad's.
Samsung Electronic Co.'s Galaxy Note 10.1:
— Price: $499 for 16 gigabytes of storage, $549 for 32 GB
— Screen size: 10.1 inches diagonally
— Screen resolution: 1280 by 800 pixels, 149 pixels per inch
— Weight: 1.3 pounds
— Cameras: low-resolution front camera, 5-megapixel back.
— Battery life: 9 hours.
— Operating system: Google's Android
Pros: Comes with a pen, for jotting notes and drawing on the screen. Slightly thinner and lighter than an iPad. Longer, narrower screen better suited to movies. Storage is expandable with microSD memory cards. Can act as a universal remote control for an entertainment center.
Cons: Selection of third-party applications not as good as iPad's, but wider than Kindle. Screen resolution lower than iPad's. No option for wireless broadband. Pen sensor slightly shortens battery life.
Barnes & Noble Inc.'s Nook HD+
— Price: $269 for 16 gigabytes of storage; $299 for 32 GB
— Screen size: 9 inches diagonally
— Screen resolution: 1920 x 1280 pixels, 256 pixels per inch
— Weight: 1.14 pounds
— Cameras: None.
— Battery life: 10 hours of reading, 9 hours of video
— Operating system: Modified version of Google's Android
Pros: Cheap and portable. Storage is expandable with microSD memory cards. Easy access to Barnes & Noble book store.
Cons: Selection of third-party applications is small. Barnes & Noble lacks wide range of content. Lacks cameras and option for wireless broadband.
Microsoft Corp.'s Surface:
— Price: $499 for 32 gigabytes of storage, $100 extra for keyboard cover. $699 for 64 GB version, includes keyboard cover.
— Screen size: 10.6 inches diagonally
— Screen resolution: 1366 by 768 pixels, 148 pixels per inch
— Weight: 1.5 pounds.
— Cameras: Front and back cameras
— Battery life: 8 hours.
— Operating system: Microsoft's Windows RT.
Pros: Storage can be expanded with microSD memory cards. Comes with free Microsoft Office software. Models running full version of Windows 8 coming soon, offering compatibility with programs available for traditional Windows computers.
Cons: Operating system lacks good track record on tablets. Selection of tablet-adapted third-party applications small. No option for wireless broadband.

Wii U: New console launches in a sea of gadgets




NEW YORK (AP) — In the six years since the last major video game system launched, Apple unveiled the iPhone and the iPad, "Angry Birds" invaded smartphones and Facebook reached a billion users. In the process, scores of video game consoles were left to languish in living rooms alongside dusty VCRs and disc players.
On Sunday, Nintendo Co. is launching the Wii U, a game machine designed to appeal both to the original Wii's casual audience and the hardcore gamers who skip work to be among the first to play the latest "Call of Duty" release. Just like the Wii U's predecessor, the Wii, which has sold nearly 100 million units worldwide since 2006, the new console's intended audience "truly is 5 to 95," says Reggie Fils-Aime, the president of Nintendo of America, the Japanese company's U.S. arm.
But the Wii U arrives in a new world. Video game console sales have been falling, largely because it's been so long since a new system has launched. Most people who wanted an Xbox 360, PlayStation 3 or a Wii already have one. Another reason: People in the broad 5-to-95 age range have shifted their attention to games on Facebook, tablet computers and mobile phones.
U.S. video game sales last month, including hardware, software and accessories, totaled $755.5 million, according to the research firm NPD Group. In October 2007, the figure stood at $1.1 billion.
The Wii U is likely to do well during the holiday shopping season, analysts believe —so well that shoppers may see shortages. But the surge could peter out in 2013. The Wii U is not expected to be the juggernaut that the Wii was in its heyday, according to research firm IHS iSuppli. The Wii outsold its competitors, the Xbox 360 and the PlayStation 3, in its first four years on sale, logging some 79 million units by the end of 2010. By comparison, IHS expects the Wii U to sell 56.7 million in its first four years.
In the age of a million gadgets and lean wallets, the storied game company faces a new challenge: convincing people that they need a new video game system rather than, say, a new iPad.
The Wii U, which starts at $300, isn't lacking in appeal. It allows for "asymmetrical game play," meaning two people playing the same game can have entirely different experiences depending on whether they use a new tablet-like controller called the GamePad or the traditional Wii remote. The GamePad can also be used to play games without using a TV set, as you would on a regular tablet. And it serves as a fancy remote controller to navigate a TV-watching feature called TVii, which will be available in December.
Nintendo, known for iconic game characters such as Mario, Donkey Kong and Zelda, is expected to sell the consoles quickly in the weeks leading up to the holidays. After all, it's been six long years and sons, daughters, brothers and sisters are demanding presents. GameStop Corp., the world's No. 1 video game retailer, said last week that advance orders sold out and it has nearly 500,000 people on its Wii U waitlist.
Even so, it's a "very, very crowded space in consumer electronics" this holiday season, notes Ben Bajarin, a principal analyst at Creative Strategies who covers gaming.
Apple's duo of iPads, the full-size model and a smaller version called the Mini, will be competing for shoppers' attention. Not to be outdone, Amazon.com Inc. has launched a trove of Kindle tablets and e-readers in time for the holidays. These range from the Paperwhite, a touch-screen e-reader, to the Kindle Fire HD, which features a color screen and can work with a cellular data plan. Then there are the new laptops and cheaper, thinner "ultrabooks" featuring Microsoft's new Windows 8 operating system —not to mention smartphones from Apple Inc., Samsung and other manufacturers.
"Nintendo has to be a cut above the noise here," Bajarin says.
The Wii U is the first major game console to launch in years, but in some ways Nintendo is merely catching up with the HD trend. Sony Corp. and Microsoft Corp. began selling their own powerful, high-definition consoles six and seven years ago, respectively. Both Sony and Microsoft are expected to unveil new game consoles in 2013.
Baird analyst Colin Sebastian thinks the question is not how well the Wii U will do during the holidays, but how it will fare three and six months later.
Gaming has changed significantly in the past six years, especially when it comes to the type of mass-audience experiences that serve as Nintendo's bread and butter. Zynga Inc., the online game company behind Facebook games such as "FarmVille" and "Texas HoldEm Poker," was founded in 2007. The first "Angry Birds" game, that addictive, quirky distraction that has players flinging cartoon birds at structures hiding smug green pigs launched in late 2009. The first iPad, of course, came out in 2010 —three years after the first iPhone.
Fils-Aime acknowledges that Nintendo competes in the broad entertainment landscape, "minute-by-minute," for consumers' time.
"That's true today and that was true 20 years ago," he says, adding that Nintendo's challenge is communicating to people "what is so fun and appealing about the new system."
Analysts expect Wii U sales to be brisk over the holidays. Nintendo's loyal —some would say, fanatical— fan base has been placing advance orders and will likely keep the systems flying off store shelves well into next year. The classic Mario and Zelda games are a huge part of the appeal, since they can't be played on any gaming system but Nintendo's.
Research firm IHS iSuppli estimates that by the end of the year, people will have snapped up 3.5 million Wii U consoles worldwide, compared with 3.1 million Wii units in the same period through the end of 2006.
After the Wii went on sale, shortages persisted for months. Stores were met with long lines of shoppers trying to get their hands on a Wii as late as July 2007, more than seven months after the system's launch.
Though supply constraints are expected this time around, Fils-Aime says Nintendo will have more hardware available in the Americas than it had for the Wii's initial months on the market. The company says it will also replenish retailers more frequently than it did six years ago.
An initial sell-out doesn't mean the Wii U will be successful over the long term, IHS notes, citing its estimate that the Wii U won't match the Wii's sales over time.
Bajarin believes it's going to take "a little bit of time" for the Wii U's dual-screen gaming concept to sink in with people. If it proves popular, Nintendo could see even more competition at its hands.
"Technologically, it's not a leap of the imagination to see Apple, Google, Microsoft do something like this," he says.
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Follow Barbara Ortutay on Twitter at https://twitter.com/BarbaraOrtutay

RIM CEO sees new BlackBerry powering growth




WATERLOO, Ontario (Reuters) - A new line of BlackBerry 10 devices will provide Research In Motion with a framework for growth over the next decade, offering long-term value for unhappy shareholders, Chief Executive Thorsten Heins said on Wednesday.
In an interview with Reuters, Heins said RIM had identified $800 million of the $1 billion of savings it promised for the financial year ending in early March, and was confident of finding the rest as it gets ready to launch the new phones.
RIM is betting that the new smartphones will help it claw back the market share it has lost to the likes of Apple Inc's iPhone and devices powered by Google's Android operating system.
Both consumers and corporate customers have abandoned the BlackBerry in droves, even though the devices offer security features that rivals have been unable to match.
"There's this high-level security that you cannot walk away from, and then there's 'good enough' security," Heins said in an interview at RIM's Waterloo, Ontario, campus, a sprawl of low-rise buildings.
But analysts remain skeptical, especially after the botched 2011 launch of RIM's PlayBook tablet computer, which the company had hoped would compete with Apple's wildly popular iPad. The PlayBook had top-of-the-line hardware, but its software was far from complete at the launch and needed multiple updates.
RIM delayed the roll-out of the BlackBerry 10 phones to the first quarter of 2013 so as not to repeat the errors that surrounded the PlayBook launch.
Heins said the delay was the correct decision - the way to ensure the BB10 phones are a high-quality product rather than a rushed one that would not meet customer expectations.
"I think it's all lining up. Sometimes you get the feeling that the universe is in disarray, and with BlackBerry 10 coming, I see the stars lining up," Heins said.
SLEEK DEMO MODELS
Sleek demo models of the new phones look much like the high-end smartphones in the market today, and company executives proudly showed off a touch-screen version and a version with the miniature QWERTY keyboard popular with many BlackBerry users.
Users flick a thumb or finger to maneuver from one program to another and can sneak a look at an incoming email while browsing the Internet or using other applications, a multi-tasking ability that RIM says rival devices lack.
Personal and business profiles can be kept separately, something RIM calls BlackBerry Balance. Corporations can erase only their share of the data on a device if they need to do so for security reasons, leaving personal photos, contacts and emails untouched.
The app library available at launch will not match the vast number available on other devices. Heins said RIM had chosen to focus on providing those apps needed in different regional markets. It expects some 100,000 apps to be ready at launch.
The developer community has been broadly enthusiastic about the devices. But financial analysts have mixed views on their likely reception in an ultra-competitive market.
Pacific Crest analyst James Faucette warned last week that BlackBerry 10 is likely to be dead on arrival - with an operating system that gets "a lukewarm response at best," due to the unfamiliar user interface and a shortage of apps.
SHAREHOLDER VALUE
Heins insisted morale was high at the company, despite 5,000 job cuts and a rapidly sliding market share ahead of the launch of the new phones.
RIM's share price is down more than 90 percent from a 2008 peak of about $148. It has fallen even after Heins, a former Siemens AG executive, took over in January. The shares on Wednesday closed at $8.49 on Nasdaq.
"The message to our shareholders is that we understand this is and has been a difficult time for them and for us," the tall, bespectacled CEO said. "But with the development of the BlackBerry 10 platform we are truly convinced that we will create long-term value for RIM's shareholders and investors."
RIM has already given the demo phones to developers and to carriers, and its new BlackBerry Enterprise Server 10, which runs the devices on corporate networks, is in beta testing with 20 key customers -- both government agencies and corporates.
Next month, the company will give more than 50 top enterprise customers technical previews of both BES 10 and the devices.
Heins said the feedback he is getting from the customer base "is very encouraging."
With the erosion of RIM's base particularly strong in North America, there has been speculation the company could choose to launch the new phones in a region where the phones remain popular. Heins said that would not be the case.
"We cannot launch every carrier and every country on the same day, but what we have defined is a set of waves in the various regions," he said. "It is going to be a global launch. There isn't one preferred region. We are managing and planning it as we speak."
(Reporting by Euan Rocha and Janet Guttsman; Editing by Frank McGurty and Leslie Adler)

Smartphones, tablets spark "post-pie" Thanksgiving sales




(Reuters) - Retailers are targeting "post-pie" commerce, the jump in shopping created by the boom in smartphones and tablet computers which Thanksgiving diners grab as they collapse onto the couch after eating turkey and pumpkin pie.
While people relax with family and friends or watch football on TV, they are increasingly shopping online with these mobile gadgets, creating a surge in traffic and purchases that retailers are beginning to target for the first time this year.
"This is a new shoppable moment," said Steve Yankovich, who heads the mobile business of eBay Inc, operator of the largest online marketplace.
Before the rise of smartphones and tablets, it was socially unacceptable to pull out a laptop afterThanksgiving dinner, or head to a home office to fire up a desktop computer, Yankovich explained.
"With a tablet or smartphone you don't get that reaction," he added.
EBay recently surveyed more than 1,000 shoppers in the United States about their holiday shopping plans. Almost two thirds said holiday sales should begin after Thanksgiving dinner and respondents said their meals would end, on average, at 5:23 p.m. EST.
Based on that feedback, eBay plans to launch 20 mobile-only deals through its eBay Mobile application at 5:23 p.m. EST this Thanksgiving. The company plans 20 more at 5:23 p.m. PST for West Coast shoppers.
Other retailers including Toys "R" Us, HSN Inc, Rue La La and ideeli are also targeting mobile shoppers this Thanksgiving in the evening.
"The iPad holiday sales season starts at the point of indigestion while you're sitting on the couch afterThanksgiving dinner," said Ben Fischman, chief executive of Rue La La, which specializes in online limited-time fashion sales events known as flash sales.
Post-pie commerce is the latest example of how mobile devices, in particular Apple Inc's iPad and iPhone, are changing consumer behavior and forcing retailers to adapt quickly.
The holiday shopping season traditionally kicks off with Black Friday, the day after Thanksgivingwhen shoppers use a day off from work to head to stores.
The following Monday became a big online shopping day known as Cyber Monday because people returned to the office and shopped using their office computers.
Now Thanksgiving is emerging as a big new shopping day online. The value of e-commerce transactions on Turkey Day has surged 128 percent to $479 million over the past five years, outpacing the growth of Black Friday, Cyber Monday and other big holiday shopping days, according to comScore Inc.
That's a far cry from the $1.25 billion spent online on Cyber Monday last year, but the growth has caught retailers' attention.
"It's still a smaller day, but it is growing much faster," said Andrew Lipsman of comScore. "We're seeing a lot more talk about Thanksgiving becoming a more important shopping day."
Several big retailers, including Target Corp, are opening physical stores on Thanksgiving to make sure they don't lose sales to online rivals.
"Consumers that would rather shop than watch 12 hours of football on Thanksgiving Day should be given the chance to shop," Marshal Cohen of The NPD Group wrote in a blog on Thursday. "If online is open, why should brick-and-mortar close just to give away those precious shopping hours to the competition?"
Thanksgiving evening is where the action is online. By 3 p.m. EST last year online sales were up about 20 percent compared to the same period in 2010, according to IBM Software Group, a unit of International Business Machines Corp.
But by midnight PST on Thanksgiving 2011, online sales were up 39 percent versus the same period the previous year, IBM data show. Overall, November 2011 online sales rose 15.6 percent compared to the year-earlier period.
"Post-pie shopping this year will be fueled mostly by tablet shoppers, especially iPad users," said Jay Henderson, global strategy director for IBM's enterprise marketing management business.
In September and October, the iPad accounted for at least 7.5 percent of all traffic to retailers' websites, beating out the iPhone with about 6 percent and Android devices at just over 4 percent, IBM data show.
"This is the first time the iPad has shown sustained leadership over all other mobile devices," Henderson said.
Last Thanksgiving, retailers were surprised by the surge in tablet traffic in the evening. They also did not expect the devices would be used to complete so many purchases, instead expecting them to be browsing devices mostly, according to Steve Tack, chief technology officer for APM Solutions, a unit of Compuware Corp.
"Tablet users are not waiting for Black Friday or Cyber Monday to purchase, they are doing it on Thursday night on the couch in front of the game," he said. "This is a significant new shopping event."
This year, retailers are more prepared, he added.
Rue La La will launch an online boutique called "The Holiday Dash" at 8 p.m. EST on Thanksgiving, "specifically to go after the shopper who will be sitting at home after dinner on the couch," CEO Fischman said.
More than half of Rue La La's sales over Thanksgiving, Black Friday and the following weekend will come from mobile devices. Half of those mobile purchases will be on an iPad, he said.
Fischman said the conversion rate on an iPad is close to double the conversion rate on a smart phone, meaning shoppers are more than twice as likely to purchase using the tablet device.
"The tablet offers the luxury of a larger screen with the convenience and portability of the phone," Fischman said. "It's the killer e-commerce device."
Ideeli, a rival to Rue La La, plans a "Think Fast" online sales event at 6 p.m. EST on Thanksgiving to target tablet shoppers. Ideeli usually runs sales at noon every day.
Toys "R" Us, the largest toy retailer, launched a new tablet-optimized website on Tuesday and the company plans to make all its Black Friday deals available online at 8 p.m. EST on Thanksgiving.
HSN, which runs the Home Shopping Network and has traditionally focused on TV sales, on Tuesday unveiled an online holiday gift guide designed for tablet shoppers.
The company plans to send discounted deals to mobile shoppers on Thanksgiving.
"When people are done with the holiday meal and go back into the screen world, we will have great products on sale," said Jill Braff, executive vice president of Digital Commerce at HSN.
(Reporting by Alistair Barr in San Francisco; additional reporting by Lisa Baertlein in Los Angeles; Editing by Phil Berlowitz)

Intel CEO Paul Otellini to retire in surprise move




SAN FRANCISCO (AP) — Intel CEO Paul Otellini dropped a bombshell on the company's board of directors last week, telling them in private that he plans to retire from the world's largest maker of microprocessors in May. Otellini's move comes at a time when Intel faces a shaky economy and a mobile gadget craze that is eating away at demand for its PC chips —and it gives the company just six months to find a new leader.
Intel's board expected the 62-year-old Otellini to remain chief executive until the company's customary retirement age of 65. The company announced his impending departure on Monday.
"The decision was entirely Paul's," said Intel spokesman Paul Bergevin. "The board accepted his decision with regret."
Otellini will be ending a nearly 40-year career with Intel, including an eight-year stint as CEO by the time he leaves. He joined the Santa Clara, Calif. company after graduating from the nearby University of California at Berkeley and worked his way up the ranks before succeeding Craig Barrett as CEO in May 2005.
"It's time to move on and transfer Intel's helm to a new generation of leadership," Otellini said in a statement.
In another statement, Intel Chairman Andy Bryant praised Otellini for leading the company through "challenging times and market transitions."
Intel's board plans to consider candidates inside and outside the company as it searches for Otellini's successor. Otellini will be involved in the search.
Otellini and the four other men who have been Intel's CEO during the company's 45-year history have all been promoted from within. The company's board is believed to be leaning in that direction again.
Intel identified the leading internal candidates Monday by anointing three of Otellini's current lieutenants as executive vice presidents. They are: Renee James, head of Intel's software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.
If recent history is any indication, Krzanich has the inside track to become Intel's CEO. Both Barrett and Otellini served as chief operating officer before becoming CEO.
Although Otellini is generally well regarded, he has faced criticism for initially underestimating the impact that smartphones and tablet computers would have on the personal computer market. It was a pivotal change that also confounded Microsoft Corp. CEO Steve Ballmer, whose software company makes the Windows operating system that runs most of the PCs relying on Intel's chips.
"The shift came more quickly than they expected, and when they did finally see what was happening, they were a little late to react," said technology analyst Patrick Moorhead of Moor Insights & Strategy.
Indeed, in 2008, nearly 300 million PCs were sold and most of them were powered by Microsoft's Windows and Intel's microchips, according to Forrester Research. Some 142 million smartphones sold that year, at a time when the tablet market hadn't really taken off. That wouldn't happen untilApple's 2010 release of the iPad.
By contrast, this year, Forrester estimates 330 million PCs will be sold worldwide compared with 665 million smartphones and just over 100 million tablets. By 2016, Forrester predicts annual sales of PCs will rise only slightly to 370 million machines while more than 1.6 billion smartphones and tablets will be purchased.
The fates of Intel and Microsoft have been so tightly wound for the past 30 years that computers using a combination of their chips and software are famously known as "Wintel" machines.
Now, much of the technology industry is questioning whether Intel and Microsoft can catch up in the mobile market to ensure their products remain as essential — and profitable — in the future as they have been in the past three decades.
It's a challenge that Ballmer, 56, is confident he can tackle. He signaled his intent to remainMicrosoft's CEO earlier this month when he ushered out the head of the company's Windows division because of philosophical differences over the company's future direction. For whatever reasons, Otellini concluded it was time for new leadership at Intel — an opinion that many investors share, according to RBC Capital Markets analyst Doug Freedman.
"A shift in leadership could be welcome news to investors as Intel could be in greater position to broaden its portfolio into higher growth markets," Freedman wrote in a Monday research note.
Intel's stock was unchanged at $20.19 shortly before the market closed Monday. The stock has fallen more than 20 percent during Otellini's reign. Most of the decline occurred this year amid concerns about the company's ability to adjust to mobile computing and weakening demand for its core products in countries with troubled economies, particularly in Europe and China. The company blamed the poor economy for a 14 percent drop in its earnings during its most recent quarter.
Intel's chips have become even more dominant in the PC computer market during Otellini's tenure, helping to boost the company's annual revenue from $39 billion in 2005 to $54 billion last year. Besides supplying Windows-powered PCs, Otellini also scored a coup in 2006 when he convincedApple to start using Intel chips in Mac computers instead of IBM Corp.'s microprocessors.
But Apple's pioneering work in smartphones and tablet computers also muddled Intel's future. Both the iPhone and iPad inspired a wave of sophisticated handheld devices that are undercutting demand for desktop and laptop machines that house Intel processors.
Most tablets rely on a technology licensed from British chip designer ARM Holdings Plc. EvenMicrosoft has tweaked the latest version of the Windows operating system so it works on ARM chips.
Other chip makers such as Qualcomm Inc. have developed less expensive microprocessors that have eclipsed Intel in the smartphone market. Qualcomm's inroads in the mobile market are a key reason why its stock has soared by more than 70 percent while Otellini was running Intel.
The contrasting performances of the two companies' stocks enabled Qualcomm to surpass Intel as the world's most valuable chip maker. Qualcomm's market value now stands at about $106 billion versus $100 billion for Intel.
Even though its stock under Otellini has lagged the rest of the market, Intel's ongoing prosperity has enabled the company to reward shareholders in other ways. Intel has paid stock dividends totaling $23.5 billion under Otellini as its quarterly payments rose 8 cents per share in 2005 to 22.5 cents per share currently.