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AMD definitely not competing in Netbook market

Robert Hallock November 17, 2008 1:52 PM ET in Tech

While Intel enjoys a commanding success with its Atom CPU, prior excitement of an AMD CPU “for netbooks” has proved unfounded.

In an indescribably blunt statement, AMD CEO Dirk Meyer panned the netbook form factor for the next step up. “We’re ignoring the Netbook phenomenon–just thinking about PC form factors above that form factor,”  he said. Meyer, in truth, hopes to contend in the more lucrative ultraportable market.

With contenders like the MacBook Air, Lenovo x301 and the Voodoo Envy, the ultraportable market offers real power in attractive packages. While Netbooks have been criticized for slight performance, the expensive ultraportable market finds creative ways to stick feature-complete notebook hardware in a much smaller package.

AMD hopes that the introduction of its Yukon and Congo platforms bearing the Conesus processor will allow it to engage the ULV Core 2 Duos in this untapped market. While netbooks run wild with a glut of $500-$700 entries, perhaps AMD can make a real splash with a $700 notebook that offers a superior experience at a pleasing price.

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4 Comments:

  1. Leonardo
    F@H Reign of Terror is back!
    17 Nov '08, 2:01 pm

    This may be a very smart strategy by AMD. Now, and for the next couple years, profit is much more important for AMD than production quantity. AMD does not have the enormous production capability of Intel. Intel's Atom processors, although produced and sold in huge volumes, are not a big money making machine. The low power, old-tech processors are more of a commodity than a tech product, much like flash memory. AMD must prioritize. If Meyer believes AMD can successfully grab some of the more upscale and lucrative ultra portable market, then that's probably the direction to go.

    AMD just doesn't have the resources, infrastructure, and capital to be in every processor market. I appreciate Meyer's "blunt" statement. This is so refreshing, as compared to the PR-speak and essentially useless press release propaganda that was typical of the last couple years of Ruiz' leadership.

  2. Buddy J
    Dept. of Propaganda
    17 Nov '08, 2:05 pm

    Inexpensive, full-featured notebooks are a great market segment to play in. It's probably a much more lucrative game for them.

  3. Robert Hallock
    Cad
    17 Nov '08, 2:06 pm

    I just hope what we get are closer to "powerful netbooks" than "$700 compaq craptops."

  4. Buddy J
    Dept. of Propaganda
    17 Nov '08, 5:52 pm

    Well said.

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