As many of you know, AMD had previously decided not to compete in the Netbook market against Intel. I remember when I first read about this I found it strange. Why wouldn’t AMD want to get into what was being described as a revolution. A revolution of cheap computers with a main purpose of getting onto the Internet and not much else when compared to their big brother, the laptop.

I read an article about Intel curtailing orders for their Atom z processor which is very popular with those who produce Netbooks:

Demand for netbooks is so high that Intel isn’t accepting orders for its Atom Z microprocessor any more, according to a report.

Digitimes, a Taiwanese wire, said that Intel has almost run out of stock of the CPUs, although it will fulfil existing orders.

The same report adds that Intel wants to define clearly the difference between CPUs for mobile internet devices (MIDs) and for netbooks.

But if that’s the case, the genii is already out of the bottle – netbooks have been a runaway success, largely because they’re seen as affordable alternatives to more highly featured notebooks.

Intel has always had the fear that the Atom range of microprocessors – very much cheaper than those used in fully fledged notebooks – could cannibalize its business model.

Intel may be feeling the pinch from smaller profits from the Atom Z chip that was designed for the Netbooks and that also is a low power user providing extended battery life. But there is something else that could be happening. Besides the low profitability, Microsoft’s Vista and Windows 7 require more power than what the Atom Z can provide.

There you have it. Another WinTel conspiracy story. But a story that could make sense if Intel does drop production of their Atom Z chips. Hello DOJ!

Maybe AMD know that the pint size cpu’s would be a low profit item and decided to steer clear of the Netbook market. But if Intel stops producing the the Atom Z processor, what happens next?

Comments welcome.

Source.