New AMD Processors Aiming Between Laptops and Netbooks

An anonymous reader writes with an article about AMD's Conesus chip, suggesting that it is intended to compete with Intel's Atom for the netbook market. However, CNet reports that AMD is eschewing that form factor in favor of something larger, yet still more portable than a traditional laptop. Quoting: "AMD's strategy seems solid, in my opinion. Go for a segment that is bigger and better than Netbooks. The ultraportable category (the MacBook Air being the best example) is full of attractive but expensive designs. Why not work with PC makers to offer an ultrathin, ultralight, full-featured 13-inch notebook that is priced a lot less than $1,800? Why not $600 or $700? In addition to the conventional criticism of Netbooks (small screens, tiny keyboards), an underrated fact is that many users eventually get the feeling that they're stuck with an underpowered laptop."

Comments

Re:Far too many big corps are unhappy with netbook

[Kjella]

High-powered, high-priced ultra mobiles have always been there - I bought a very expensive Toshiba back in 2002 which is pretty near as small and light as you can get given the screen and keyboard. Atom opened up a whole new market exactly because these ultra-mobiles are cheap enough to buy as alternatives, not replacements or to completely new markets which probably explains the higher returns. A lot of the statements in the article is plain old bullshit, like the "failure of the principle". It's like saying compact cars are a failure because people also want semi-compacts instead of full-sized cars. The laptop producers have been fighting heavily for margins but Intel has huge margins on the Atom, do a little die size math and you'll see that they sell for far more than Core 2 Duos/Quads in terms of $/mm^2. And the sales are so far beyond expectations that Intel, you know that semiprocessor production giant, had trouble delivering.

The alledged market AMD is claiming is there can be snuffed out by Intel at any time, they have the chips to do it but are keeping the prices on the high-powered ultra-mobile chips very high. The Core 2 Duo T-series will easily cost you 3x as much as desktop chips for clockspeed parity, for example at 2.5GHz you can get a 170$ E7200 or a 510$ T9300. Sure it would be very nice of AMD to come in and help push prices down, but Intel could slash the T9300 to 2-300$ in a heartbeat and essentially close any gap that might have been between netbooks and laptops.

Yes, for a certain range AMD still has good value products as that's where they have to be as challengers, but don't confuse market realities with how they're doing financially or technologically. However that range has been growing slim, with better chipsets to match the Atom they're fighting a losing battle on the lowest end, they have lost the high-end desktop and laptop market long ago and nehalem has a heavy dose of server-oriented improvements. Intel's been hitting all their high-margin strongholds and just delivering "value" desktop/laptop processors has very poor margins. Intel can keep up their tight tick-tocks and weather this recession, I'm not sure AMD can even with this restructuring.