AMD Taking a Wait-and-See Approach to Low Cost Netbook Market

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It seems like every company is jumping onto the recent Netbook craze, but will it turn out to be a passing fad? No one knows for sure, and it's because of this uncertainty that AMD will sit this round out.

"We are not saying it's not an important segment and we're not saying it's not a growing segment. What we are asying is that we are a smaller company and we have to focus on what we do well at this point. We are watching that segment rather than playing in it, but as it matures we'll see where it goes," said Nigel Dessau, AMD's chief marketing officer.

Dessau's comments fall in line with AMD's recent commitment to refocusing its business strategies, but could the company be preparing to strike? For as popular as the ultraportable market is becoming, rumors abound that Intel has been having trouble keeping up with demand for its Atom processor, which Intel CEO Paul Otellini recently assured investors was not true , but did say the Atom is "something that most of us wouldn't use." And while Intel downplays the market, some speculate that AMD is already working on an Atom competitor. If AMD were looking to strike while the iron was hot, now would be the time.

But with only so much cash to go around, AMD looks to play it safe for the time being and instead stay focused on its transition to 45nm . If the Netbook market turns out to be a temporary one, AMD will have undoubtedly made the right decision. But if ultraportables end up being more than just a passing craze, will AMD be ready hop on board?

Image Credit: AMD

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