Inexpensive desktops and notebooks
What was probably the most revealing in this edition of the IDF concerning Intel’s future strategy was the subject of entry level machines. These were originally intended for developing countries but quickly imposed themselves in more developed countries.
While Intel didn’t really reveal anything too new and concrete (the Atom was already discussed before), its strategy is now clearer: create a real distinction between the "inexpensive" and the market that has been Intel’s classic domain of activity.
For a manufacturer like Intel, the arrival of machines such as the EeePC initially wasn’t good news because there was potentially less money to be made in a PC costing 300€ than a 1000€ (or more) model. These inexpensive products thus represent a threat to Intel’s business; however, they are indeed here to stay and will evidently become increasingly widespread. Intel plans to take the bull by the horns with the Atom which is a very low cost processor to produce while it is enough for basic use.
Because it was derived from an entirely different and much more limited architecture, Intel makes a clear division in the market with the Atom: there will be low priced “limited” PCs and “classic” models. In this way, the traditional Intel market is protected and the manufacturer is ready to swallow up another new market with enormous potential. The separation is much easier to manage than with currents solutions that are based on the classic entry level. Also, as long as they are selling a product, it might as well be profitable. In Intel’s own words on the subject : "Game changing : Intel's purpose-built solution for basic segments to minimize cost and maximize margin".
A new segment is synonymous with a new name. "Inexpensive" or "More expensive" wouldn't have been practical. On the desktop, the basic PC will be called, “Nettop”, and in its mobile version, “Netbook”. The reference to “net” is obvious because the main function of these machines will be to connect to the Internet. For us, this more concerns secondary posts, for example, to equip the children’s room (gaming power is poor, but for homework and chatting on MSN it’s enough).
These same machines will also allow the arrival of numerous affordable offers in developing countries and represent crucial help in the classroom. Moreover, Intel presented at the IDF the second version of its Classmate PC which is actually very similar to the first one. We will have to wait for the end of 2008 to see the arrival of a real new version based on the Atom processor.
