AMD has no intention of trying to compete with Intel in the netbook segment, according to this story from Information Week.
The processor company has said that its new Yukon platform is intended for ultra-portables, rather than the smaller netbook form factor, and that for now, it’s not getting into the netbook sector.
I’m not sure that it’s a good move for AMD. The difference between ultra-portables and netbooks is small, and definitions change, but broadly ultra-portables have screens of between 11-13 inches and a full-size keyboard, while netbooks are generally 10 inch screens or less. That might not sound like a lot of difference, and consumers might not be able to tell the difference, but the market is still evolving, and I think that AMD shouldn’t be too hasty to distance themselves from the segment.
For one thing, the netbook sector is showing phenomenal growth. Gartner predicts that over 5.2 million netbooks will ship this year, rising to 8 million next. In a slowing market, netbooks have been the hardware success story of the year so far.
The netbook form factor is also still finding its market. While Gartner says that around 70% of netbook sales will be to consumers, the original idea of small, cheap, portable computers that would suit younger users, or second-PC owners, the netbook sector has changed up a gear, and rapidly attracted attention from business users, who like its compactness. In particular, the ‘pocket-sized’ netbook is more attractive than a ‘full size’ ultra-portable for business travellers.
The players in the netbook sector have also expanded, from the initial wave of cheaper consumer devices from Chinese and Taiwanese brands, the form factor has now attracted the big name vendors. Support from HP, Dell or Lenovo will drive sales of netbooks to more users across different sectors.
And with no AMD competition, if the big vendors wants to do netbooks, then they are going to be doing them with Intel’s Atom processor. AMD should think twice before shutting the door on a sector that hasn’t yet shown its true potential.
A post by "Mark Sutton" http://www.itp.net
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I fully agree with AMD’s strategy. They need to focus on what niches to compete.
The fact is Intel has totally blown of amd in the notebooks/laptop segment so far. This segment occupies a significant market share and also more importantly better profit margins compared to netbooks and low end desktops. every officer goer will need 1 ultra portable laptop (thin as opposed to small) and AMD is correct to concentrate on this.
If AMD pulls of a win in ultra-portables then they will be nicely positioned to attack the other segments using this as a base.
Comment by mars — Sunday, 16 November, 2008 @ 22:47
Who wants full size laptops? 80% people using laptops for email, chating or letter writing.So netbook is best option.People are looking for cheap netbbok.
Netbook will be product of the year in 2009.
Comment by Vinay Mehta — Monday, 17 November, 2008 @ 14:00
The very fact that the Netbooks or low cost Notebooks will occupy close to 13-15% of the market in 2009 itself would make AMD rethink on their decision if they want to be relevant in the PC market.
In any case, we are a free world, and no one can stop anyone from writing ones own obituary.
Comment by rajeev bajpai — Monday, 26 January, 2009 @ 09:26