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Sunday, March 30, 2008

A New Goldmine For Intel: The $6 Atom Processor

According to Tom's Hardware Intel will be launching its Atom CPU (previously codenamed Silverthorne) soon, which the company is expecting to be its next big cash cow due to its low extreme low pricing. According to the writer, Theo Valich, a credible source has placed the Atom production/packaging/shipping cost in the range of USD6 to USD8. If true, this would mean Intel can earn as much as USD40 per chip.

If the low price allows the Atom to take off in a spectacular manner and spark a new generation of MIDs and UMPCs, then it could conceivably end up earning more money than Core 2 Duos, much in the same way the Eee PC line-up could potentially become Asus' bread-and-butter.

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