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Intel’s Atom CPU

Discussion in 'General Marketing' started by kappa84, Mar 30, 2008.

  1. kappa84

    kappa84 Senior Member Webmaster

    Chip manufacturer Intel will soon introduce one of its most important products on the processor market since the first release of Pentium. The ultra-efficient Atom chip will power a new and increasingly growing sector of the IT industry, targeted at the emerging markets.

    The new processor could shovel fortunes into the company's accounts, and Intel is reportedly gearing up to cut on manufacturing costs as much as possible. The manufacturing costs per chip could be compared to those of a 286 processor.

    The low manufacturing costs would allow the manufacturer to create a sub-$200 market for the upcoming Mobile Internet Devices.
    At the moment, there is no estimative price for Intel's Atom CPU, and the chip manufacturer won't disclose any details regarding this aspect until the chip is officially introduced. The latest estimations claim that the chip will hit the market at prices ranging between $29 and $49.

    It seems that Intel will spend between $2 and $6 for manufacturing a single Atom chip and the cost including packaging and shipping will be around 8$.

    source: tgdaily.com

    What do you think about this, it is just a marketing strategy or could they really manufacture a chip with that surprising cost of 2-4$/chip?

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