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Could the Atom eat away Intel’s bottomline?

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This Friday, Intel will be launching their newest mobile CPU in the Philippines — the Centrino 2. However, the Intel Atom usually takes center stage nowadays because of the heavy proliferation of cheap netbooks. Could the Atom be more of a headache rather than a blessing to Intel’s bottomline?

Well, let’s look at it this way. The existing Core 2 Duos for mobile will cost between $209 and $530 a pop. The Celeron M processors, between $86 to $134. (Prices quoted are for the standard 1,000 bulk orders in March 2008.)

Now, how much is the Intel Atom today? Round-about $29 (N230), $38 (N270) and $43 (upcoming N330 Dual Core). The Intel Atom is way cheaper than the mainstream Intel CPUs in the notebook category.

Granted, they may not be as fast and not as powerful than the mainstream mobile processors. Still, once people tried the ones that run on Intel Atom and realized that the experience is almost similar to using the bigger notebooks for the more common tasks of word processing, browsing and playing media files, they won’t look and spend for anything faster.

The current Intel Atom is already running at 1.66GHz. Three or 4 years ago, this CPU could have been on the top of the heap in terms of processing power for mobile computers.

A couple more years down the road and the cheaper Atom could be the most favored and sell-able CPU for the laptop, overshadowing the numbers of the Core 2 Duos. Intel would have to sell the 4 or 5 times more Atom CPUs just to achieve the same amount of revenues as they would have with the Core 2 Duos. Now, wouldn’t that be a headache?

Frequently Asked Questions

How much does the Intel Atom cost compared to other Intel mobile CPUs?
The Intel Atom costs around $29 to $43, while Core 2 Duos cost $209 to $530 and Celeron M processors cost $86 to $134.
What common tasks can an Intel Atom-based netbook handle similarly to larger notebooks?
Word processing, browsing, and playing media files are common tasks where the experience is almost similar to using bigger notebooks.
Why could the Intel Atom become a headache for Intel's bottomline?
Intel would need to sell 4 or 5 times more Atom CPUs to achieve the same revenue as selling fewer, more expensive Core 2 Duos.
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Written by
Abe Olandres

Abe Olandres

Editor-in-chief

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and is considered by many as the Father of Tech Blogging in the Philippines.

View all posts by Abe Olandres →

5 Comments

IC
iceman9 · 18 years ago

it would be a headache if their sales goes below, and a blessing if it quadruples..hehehe


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BR
BrianB · 18 years ago

You’re right. The only reason they’re even bothering to make these things is fear that VIA will catch up in the market.


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