Intel Reconsiders Atom Chip Strategy
It's been a wild ride in the netbook market, with plenty of highs and not many lows. But things have started to level out and netbooks are no longer flying off of store shelves at the same pace as before. Are underpowered Atom processors to blame?
According to a study released by IDC, Intel's Atom chips for netbooks accounted for 20 percent of Intel's mobile PC processor shipments during the first quarter of 2010, down from 24 percent in the fourth quarter of 2009. While you want to be careful not to read too much into this, it's a probably a safe bet that faster Atom chips could pick things back up, and that seems to be Intel's strategy.
"The next innovation coming to Atom is on dual-core," Otellini said during a financial earnings call earlier this month.
According to Otellini, more dual-core Atom processors are on track for this quarter, though he didn't come out and say these would specifically be for non-ION netbooks. In the meantime, companies like HP are already advertising new netbooks running one of Intel's upcoming Atom chips, the N455. The N455 adds support for DDR3 memory, which will probably boost some benchmark numbers, but won't have the same impact on netbook computing that a dual-core Atom chip would.
"We believe the potential and growth opportunities for Atom continue to be tremendous. You can expect to hear more about this momentum throughout May, and into Computex," said Suzy Ramirez, an Intel spokesperson, in an e-mail to InfoWorld.

Image Credit: Intel
Comments
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Zazubovich
May 04, 2010 at 1:21pm
But my girlfriends' machine runs Ubuntu/Easy Peasy and does everything you would ever want from it. Smartphones are getting smarter and better so I think most people are using those for the same purposes you'd use a netbook for. Now put a cell phone in the Ipad and smash that bugger up against your noggin and you'd have a great product.....Better than a shoe phone at least.
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TechJunkie
May 05, 2010 at 5:05am
I don't know....Maxwell Smart made the shoe phone look better than any apple product....
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aviaggio
May 04, 2010 at 11:33am
I think there are a bunch of reasons why netbooks are quickly going the way of the dodo, and the other posters have hit most of them.
One that has gone unmentioned is price. When netbooks first came out they were dirt cheap, with many less than $250. But not any more. Now even a low end netbook will run you around $400, and for that price you might as well get a full-fledged laptop.
And Atom isn't helping. Oh boy, now in dual core. Big deal. It's still a horrible processor. I'd rather have a much faster single core processor than a slow dual core. Cause it's not like you're going to be using it to encode video or play modern games. What exactly are you doing to do in daily use that's going to take advantage of the 2nd core?
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LGA1156
May 04, 2010 at 8:41am
Windows 7 killed the netbook, The atom just doesn't have the power to run Win7 quick and smooth for everyday use of movies, internet, and flash games. Also the built in Intel graphics are also a major bottle neck that needs to be addressed. If the netbook runs XP then its like a dream machine once suck with win 7...
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Ilander
May 04, 2010 at 6:05am
Crazy as it might be to believe, the netbook, despite it's low price, is a luxury item.
Here's the deal:
Most netbook customers already own at least one computer, and many own two; a desktop, laptop, and netbook. The reason to have the first two is to have a fast computing experience oriented toward getting work done and being productive (hence the higher computational power, and ultimately, efficiency).
The netbook is more portable than the laptop, and power consumption is dialed down to the minimum so as to better the user experience . The best way to explain it is that if a customer doesn't have money for a luxury good, they just buy the necessary one---thus, if the customer needs a portable computing option, it's better for them to purchase a laptop than a netbook due to the productivity increase with a faster chip/bigger keyboard/bigger screen.
This relegates the netbook to an area in the market where power bricks are an annoyance, fan noise is anathema, and "cute" is required in design, because the consumers want that.
Of course, we already heard that desktop and regular laptop shipments are up as of Q1, and it's because people don't have money to waste on products with more aesthetic value and less intrinsic value.
Increasing the performance of the netbook may help, but dual-core Atoms are already available, and their performance stinks. It's hardly any faster than a standard Atom. The more I look at Atom, the more I wonder what direction Intel can go to improve performance, because adding a core doesn't do it, and it has no real overhead to achieve higher frequencies (2.0 GHz Atom anyone?).
Netbooks are here to stay, of course, but these days, I think people are "getting by" with a smartphone and a regular laptop.
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TechJunkie
May 04, 2010 at 4:41am
NO! It's just that most people who wanted a netbook already purchased one. At the rate tech is going, if people wait for the next lastest and greatest all the time before purchasing, nothing would get purchased. The slowdown in sales is because of the economy and rightfully so. My netbook has the N270 1.6GHz proc. Yeah, it's pokey, but it does the job so there's no need to upgrade at this point.
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