Intel looking to cushion profit margins with Core processor for ultra-thin notebooks

by Justin on January 11, 2009

apple macbook air chip Intel looking to cushion profit margins with Core processor for ultra thin notebooks

Word from the Consumer Electronics Show in Las Vegas has it that Intel will be launching a new Core processor for ultra-thin laptops.   Much like the recently announced Athlon Neo from AMD which aims at ultra-thin devices between $700 and $900, the new Core will aim at the mid-range between sub-$500 netbooks and above-$1500 notebooks.  Roughly half the size of Intel’s standard Core 2 Duo processor with dimensions of 22 millimeters x 22 millimeters, the modded Core processor will be used in notebooks less than 25 millimeters thick (about 1 inch).

Because the chip will be aiming at a mid-range price point it won’t directly compete with Intel’s Atom processors.  It’s likely the new chip is a direct effort by Intel to pad its profit margins.  One of the main concerns with the popularity of netbooks is that the lower-cost Atom chips are beginning to cannibalize Intel’s higher-margin Core processors.  By leveraging the ultra-thin mid-range the company can hopefully reverse some of this cannibalization.

(Image Credit: Intel)

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