As Paul Otellini retires from his post as the chief executive of Intel, he reveals in an in-depth profile that he ultimately passed on a contract to build the silicon which powered Apple’s original iPhone, a decision that he regrets given the handset’s wild success. In an interview with The Atlantic, Otellini said the following about his company’s chance to be an integral part of Apple’s iPhone project:
We ended up not winning it or passing on it, depending on how you want to view it. And the world would have been a lot different if we'd done it.
The thing you have to remember is that this was before the iPhone was introduced and no one knew what the iPhone would do. At the end of the day, there was a chip that they were interested in that they wanted to pay a certain price for and not a nickel more and that price was below our forecasted cost. I couldn't see it. It wasn't one of these things you can make up on volume. And in hindsight, the forecasted cost was wrong and the volume was 100x what anyone thought.
The lesson I took away from that was, while we like to speak with data around here, so many times in my career I've ended up making decisions with my gut, and I should have followed my gut. My gut told me to say yes.