Intel: Atom demand still greater than supply

It’s been fairly widely reported that the Intel Atom shortage that hit this summer has been resolved, and it doesn’t look like there’s any shortage of computers with the Intel Atom CPU on the market today. But Intel CEO Paul Otellini says the company is still having trouble keeping up with demand.

Otellini says he expects that by the end of the year, Intel will be able to meet the demand for the low power chips. But with practically every netbook announced or released by a major computer manufacturer in the last few months powered by the Intel Atom CPU, I have to wonder, what will the market look like when Intel actually does ramp up production?

While the Atom chips sell for less than higher power processors, Intel has a higher profit margin with the Atom. The company generated $200 million in revenue from Atom sales during the third quarter of 2008.

  • Glenn

    Dell continues to slip their Mini 9 shipments week for week. If they're not getting all the parts they need, I have to assume nobody is.

  • T. Lord

    But don't worry … you'll know when the supply is greater than the demand, at least greater enough for that phrase to mean somethng — because at that point, someone (it may not be you as an individual) will be paid to remove Atoms from some sticking point, where their mere presence is a hindrance.

    It's a bit like the way you know the difference between “a resource” and “garbage” by whether someone wants to pay you for it (or steal it) on one hand, or pay *you* to take it (or toss it over your back fence at night) on the other. (For this interesting comparison, I owe Mike Munger for his amusing musings on this at econtalk — see http://www.econtalk.org/archives/2007/07/munger… if you have a bit of time and an interest in economics …)

    timothy

  • Rich

    So much for Intel's comment this summer that the Atom wasn't going to be a money-maker.

  • Glenn

    Dell continues to slip their Mini 9 shipments week for week. If they're not getting all the parts they need, I have to assume nobody is.

  • T. Lord

    But don't worry … you'll know when the supply is greater than the demand, at least greater enough for that phrase to mean somethng — because at that point, someone (it may not be you as an individual) will be paid to remove Atoms from some sticking point, where their mere presence is a hindrance.

    It's a bit like the way you know the difference between “a resource” and “garbage” by whether someone wants to pay you for it (or steal it) on one hand, or pay *you* to take it (or toss it over your back fence at night) on the other. (For this interesting comparison, I owe Mike Munger for his amusing musings on this at econtalk — see http://www.econtalk.org/archives/2007/07/munger… if you have a bit of time and an interest in economics …)

    timothy

  • Rich

    So much for Intel's comment this summer that the Atom wasn't going to be a money-maker.

  • Fanfoot

    Dell continues to slip their Mini 9 shipments week for week. If they're not getting all the parts they need, I have to assume nobody is.

  • T. Lord

    But don't worry … you'll know when the supply is greater than the demand, at least greater enough for that phrase to mean somethng — because at that point, someone (it may not be you as an individual) will be paid to remove Atoms from some sticking point, where their mere presence is a hindrance.

    It's a bit like the way you know the difference between “a resource” and “garbage” by whether someone wants to pay you for it (or steal it) on one hand, or pay *you* to take it (or toss it over your back fence at night) on the other. (For this interesting comparison, I owe Mike Munger for his amusing musings on this at econtalk — see http://www.econtalk.org/archives/2007/07/munger… if you have a bit of time and an interest in economics …)

    timothy

  • Rich

    So much for Intel's comment this summer that the Atom wasn't going to be a money-maker.