Intel: Atom is Eating into Celeron, and That's OK

From Tom's Hardware: These days when someone is in the market for a portable computer, the choices now include netbooks. Most casual internet users mainly surf the web according to their interests and keep communicate via email and social networking sites.

With netbooks being the inexpensive solutions that they are, it’s easy to see why they’re eating into sales of notebooks. In fact, Intel puts netbook cannibalization of notebooks at around 16 percent – which means that the notebook segment lost around a sixth of its sales to the cheaper netbooks. This is of some concern to the industry as lower priced products could mean lower profits, but Intel doesn’t seem worried.

In fact, Intel argues that netbooks aren’t exactly taking over notebooks, at least not in a negative way, and has more untapped selling potential.

“The market has not all lept over to Netbooks,” said Intel Chief Sales and Marketing Officer Sean Maloney, according to CNet. “We're very comfortable with having established the (Netbook) category. We believe now that Netbooks are an under-distributed product line.”

Those looking to get a laptop for cheap are likely looking at Celeron-powered machine, and if the consumer buys an Atom instead, that doesn’t bother Intel.

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