Intel answered critics Thursday by saying inexpensive netbook portable computers are not significantly eating away at the sales of more fully featured notebooks, as detractors assume.
Intel expects to do well in netbooks over the next couple years
“There is some cannibalization, but the data suggests the vast majority of netbook sales are incremental,” CEO Paul Otellini said on a fourth-quarter earnings conference call.
Netbooks, which can sell for less than $500, have been among the hottest products in the computer market, especially among budget conscious consumers. Intel said it anticipated machines running its low-power Atom processor would do well in 2009, and that Atom sales would grow substantially.
“I would expect we will do very well in the netbook market over the next couple years,” says CFO Stacy Smith.
On a separate topic, Intel vowed not to restart a price with rival Advanced Micro Devices. Chip prices fall as new products come to market. But price reductions in 2009 will not come in reaction to the “external environment,” Intel said.
We have to see the comment by Intel/Paul in the month of April. I am sure he is going to accept cannabilsation or may be a more positive word – faster adoption of netbooks by consumers !
Lets watch
Netbooks are now occupying close to 20% of the Laptop market, and the increasing display sizes, addition of graphics card etc would only mean that the difference between the netbook and notebook is narrowing, thereby indicating that netbooks are definetly cannibalizing the Notebook market….
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