Intel Denies Short Supply of Atom Processors

Netbook Makers Complain About Atom Processor Undersupplies

by Anton Shilov
09/15/2009 | 03:23 PM

Intel Corp., the world’s largest supplier of microprocessors, denied the report that it was reducing supplies of Intel Atom processors to popularize the more expensive consumer ultra low voltage (CULV) platform and improve its average selling prices.


According to a news-story from Taiwan Economic News, Intel has come to a decision to readjust its product policy by decreasing supply of Intel Atom processors since netbooks started to cannibalize sales of more advanced notebook computers. In particular, at the moment Intel is working hard to popularize its cost-efficient ultra-thin notebook platform known as CULV, however, in many cases contemporary Intel Atom-based systems may compete directly with notebooks, which affects long-term profits of Intel. However, Intel itself claims that there are no reductions in Atom shipments.

“There is no reduction of Atom shipments in favor of any other platform. In fact, we are extremely with the Atom demand and are doing everything to fulfill all the demand for Atom,” said Suzy Ramirez, a spokeswoman for Intel.

At present netbooks account for 20% - 30% of shipments of Acer Group, Asustek Computer, MicroStar International and Quanta Computer, according to the media report citing an insider.

Late in August the world’s largest maker of chips said that as a result of stronger than expected demand for microprocessors and chipsets, Intel expected revenue for the third quarter to be $9.0 billion, plus or minus $200 million, as compared to the previous range of $8.5 billion, plus or minus $400 million. The gross margin percentage for the third quarter is expected to be in the upper half of the previous range of 53%, plus or minus two percentage points. All other expectations are unchanged.