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[TH] A New Goldmine For Intel: The $6 Atom Processor

post #1 of 13
Thread Starter 
Wow I knew they planned on selling it cheap, but they are still making good profit here!

Quote:
Price has been a key feature of Atom, previously code-named Silverthorne, since the very first time Intel talked about this product. Intel itself stated that the production cost of the tiny chip may be close to that of a 286 CPU, allowing the company to sell the processor for a low price to open a new market of Mobile Internet Devices (MIDs) and Nettop computers with prices well below the $200 range.

We don't know the exact price of the Atom CPU yet and will have to wait until the official launch, which appears to be imminent, given the number of systems already being announced to include this processor. Rumors on the Internet currently put the cheapest Atom CPU in a price range between $29 and $49. We expect several SKUs, with the lower end targeting Silverthorne models and the MID/UMPC segment, while Diamondville (possibly dual-core) chips are rumored to go into cheap notebooks and desktops with prices of $500 and less.

Based on Intel's marketing pitch, the burning question we have been working on for a while, of course, just how profitable this processor will be. We have talked to several sources and received feedback with initial estimates of $2 per CPU and studied reports that the chip may cost about $4. Today, we finally ended up with a source close to the matter and one we consider to be very credible. Industry sources put Atom into the range of "$6-$8", which would be the production/packaging/shipping cost for the CPU, excluding the Poulsbo chipset. Let's just assume that Intel will be able to squeeze $40 out of system vendors for Silverthorne and Diamondville - and you have one heck of a profit margin.

Our source was "skeptical" that Silverthorne will in fact be as successful as Intel claims the CPU will be, but noted that "it will be a good cash cow". Intel is able to put 2500 Atom CPUs on one 300 mm wafer, which would put its production value at about $15,000 to $20,000. Intel should be able to easily hit a 90% yield, which would put the retail value of the CPUs on one wafer at about $100,000 or more. We're currently digging for more details on the Diamondville and Poulsbo parts, to get a better idea of final bill of materials.

But if Silverthorne takes off in a spectacular manner and sparks a new generation of MIDs and UMPCs, the Atom lineup could end up earning more money than Core 2 does. And that really gives us some food for thought.
Source: http://www.tomshardware.com/2008/03/...tom_processor/
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post #2 of 13
Wow That sounds very good
post #3 of 13
Neato!!!!
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post #4 of 13
Can someone just please explain to me what the Atom CPU is please?

From what I have read it is a very cheap CPU (for unknown reasons) and that it will be going in notebooks.

Why is this so famous? Is it purely because of the price? Or is the performance awesome as well?
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post #5 of 13
Quote:
Originally Posted by IcedEarth View Post
Can someone just please explain to me what the Atom CPU is please?

From what I have read it is a very cheap CPU (for unknown reasons) and that it will be going in notebooks.

Why is this so famous? Is it purely because of the price? Or is the performance awesome as well?
I'm pretty sure its just a weak CPU but very cheap to go in some phones. The higher-end ones might go in regular desktops/laptops. (I think)
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post #6 of 13
Its the new CPUs to go with the Centrino 2 chipset they are making I believe.
    
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post #7 of 13
No, they're just cheap. Meant for cheap laptops, desktops, for example the Asus Eee desktop, which is going to retail for $199.

Meant for developing countries. Also, just think about it! There will finally be truly cheap laptops around!
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Akiyama Mio
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post #8 of 13
So what kind of speed will we see? Will they be faster or slower than my Pentium M?

Even at 6$ if there only as fast as say an Intel Xscale or something and can only run like pocket linux or something then I don't see the point.
    
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post #9 of 13
Thread Starter 
it's based on 45nm so it has a high yield (low cost to manufacture), draws less power consequently, is more efficient, and cool (great for like the eee pc or eee-dt.

I'd say it'd be hard to compare, not familiar with your processor but it's not new by any means so it would probably be close.

intel is just trying to compete with AMD's semperon and VIA's new processors.
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post #10 of 13
I believe its not actually as week as some think. I remember reading somewhere that the most will-be common type Intel is gonna sell is the 1.66 Ghz one I believe.
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