Are Tablet Atom Processors Too Expensive?

Paul Lilly

Few would argue that Intel did a great job positioning its Atom processor platform as the de factor standard for netbooks. If you buy a netbook, chances are high it's sporting Intel inside. In the still emerging tablet market, however, Intel has some ground to make up, and pricing could end up holding the chip maker back.

According to news and rumor site Fudzilla , Intel's Oak Trail Atom Z670 processor for tablets will cost manufacturers a mind-boggling $75 at launch. If true, that would make it one of the most expensive single core Atom chips so far, almost four times higher than Tegra 2 at $20. It's also three times more than the rumored $25 price tag Intel was to attach to the chip for OEMs agreeing to use MeeGo as their OS, SlashGear reports .

On the hardware side, the Z670 comes clocked at 1.5GHz and has 512KB cache. It's a single core chip with two threads, so it's difficult to see the reasoning behind Intel's high price tag, if in fact Fudzilla's info is correct.

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