Does Intels Atom Threaten Celeron Sibling?
As sales of Intel’s Atom processor heat up, could it endanger the market for the company’s other low-cost chip, the Celeron? After all, Atom-based netbooks were a big item at CES last week, and even desktops based on the low-cost, low-power chip are starting to appear. Concerns that Atom sales could undercut the Celeron go back at least to last summer, when a Cnet article reported on concerns about “the challenge Atom presents for Intel.” The new chip, according to two analysts not named in the article, “potentially cannibalizes a market that the longstanding — and higher-performance — Celeron processor has thrived in.” Intel CEO Paul Otellini responded that “We do not see (Atom) replacing Celeron.” But lower sales all around for Intel make the question more urgent today. The chip maker released its fourth quarter report of a 90 percent drop in earnings last week, after earlier warning of reduced revenue forecasts. Net profit was US$234 million for the quarter ended Dec. 27, compared
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