Intel (NASDAQ: INTC) is beginning to offer its new "Atom" chip, which is designed to work in "low-end "netbooks" and other mobile computing devices, " according to the FT.
The trouble is that it is a chip for devices that no one wants.
Intel is trying to drive a wedge between low-end laptops that weigh only a couple of pounds and new smartphones like the products from RIM (NASDAQ: RIMM) and just about every other large handset company. The new smartphones can access the internet and use WiFi hotspots instead of the cellular system, access 3G broadband wireless, and read e-mail and attachments. Cheap laptops now cost as little as $500.
Intel is up against a PC market that is growing more slowly each year, especially in large markets like North American and Europe. It has decided to launch a product in the hope the new devices will come along because the chip is available.
Unfortunately, no one wants the products that Atom would drive. The niche is already crowded.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
8-20-2008 @ 10:31AM
Mike O said...
I think the author failed to do their homework. Yes, this chip fills a niche, but it's a growing one.
Google "netbook" and see how many manufacturers are jumping on board. There IS demand for small, light, ultraportable notebooks.
Intel only has one competitor in this field. While niche, it's a market they can't ignore.
8-20-2008 @ 9:29PM
matti jaffe said...
I wonder where Douglas got his information. The Atom chip was developed here in Austin and I recently had discussion with the manager of the program who has told me that the reaction to the chip has exceeded all expectation! Please do some homework before publishing your posts and stop being so negative in your brief analyses...
8-21-2008 @ 8:41AM
Murray S said...
McIntyre must be getting his ideas from AMD's PR guys.
He should talk to sales people in the stores that sell computers. Parents are buying them for kids going back to school. The stores can't get them fast enough or in enough quantities.
From this article, and some previous ones,
it appears that McIntyre is prejudiced against Intel, and is pro AMD.
9-03-2008 @ 7:35PM
Vince Carter said...
Hmm.. the same chips that were so popular they couldn't supply enough of them to manufacturers? Small laptops prior to this were running Intel's Core 2 CPUs ran in the $2,000 range, and many still weighed over 3 lbs. People are starting to realize they don't need to carry 17" laptops around when 1.6GHz Atom Processor can handle most of tasks. Plus $399 for a laptop that's only 2.2 lbs and has resolution a resolution of 1024x600 is pretty rare. It's a niche now, but it's going to be a mainstay for students, business-types, and just about everybody who has $300 to spare.