Tuesday, March 24, 2009

Atom Chip Prices and Netbooks

According to Digitimes, Intel is considering a price hike on its Atom N270 processor (core to most every netbook on the market). Why not surprising given the state of the pc industry as a whole - it would be incredibly shortsighted to slam the brakes on the one segment that is experiencing explosive growth to bolster a single quarter's earnings. However, we are talking about a chip giant and a supply/demand scenario that could inflate (but imo, more likely slow the price decline) of netbooks. So it may take longer for there to be a $200-$250 netbook on the market and could fuel ARM based netbooks that will not run Windows to take the low cost segment of the market.

Interesting ZD article here. I have posted a quick excerpt below:

"Why does this matter? For one, it shows just how hot netbooks — and the low-power components that run them — really are. So much so, in fact, that Intel can raise component prices on this segment while the rest of the laptop market is seeing falling sales, narrow profit margins and oversupply thanks to a global downturn (though the trend is supposed to eventually reverse, that hasn’t quite happened yet)."


What are your thoughts on pricing, Intel chipset and alternatives?

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