USA today had an interview with Intel CEO Paul Otellini about netbooks, mobile gadgets and WiMAX. One of the things he unveiled is that he isn't concerned that low-power processors, such as the Atom in netbooks, could cannibalize sales from high-end, high-margin products:
Somewhat larger than the MID is what Intel calls the "netbook," a small, cheap laptop. Taiwan's AsusTek has had a breakout hit in this category with its eeePC, which starts at $300 (euro191) and uses an Intel chip. Other manufacturers, like Hewlett-Packard Co., are entering the space too, though HP is using a chip from Via Technologies Inc.
Otellini isn't concerned that low-power processors could "cannibalize," or steal, sales from Intel's high-end, high-margin products.
"If a higher-priced notebook isn't substantially better and doesn't offer more utility, shame on us," he said. "If there's cannibalization, I'd rather be the cannibal than someone else."
Bill Hughes, an analyst at the research firm In-Stat, noted that a relatively small group is behind the demand for netbooks, which some stores have had trouble keeping in stock.
"It's growing fast because it's very small," Hughes said. "It will continue to be a niche for the foreseeable future."