Intel Atom revenue down due to tablet sales

Although Intel’s revenue collection has not been a concern for them as they are having a good overall collection but the companies Atom processor sales has been continuously falling down. This might be a big concern for them as Atom’s business slumped about 32 percent per year. They have reported revenue of just $269 million in the third quarter.

The decreasing sale rate might have been because of the increasing personality of the Tablets as well as the manufacture seems to be giving more preference to AMD. A report from Digitimes also mentions that vendors have looked to Sunnyvale to boost sales as the company’s APU’s are cheaper and offer better performance. Some companies have even managed to offer netbooks of the size of 12inch display, even while keeping the price at a range of $399.

However, a quick check of NewEgg implies that Intel doesn’t have to give much concern in this issue as out of 85 models of netbooks available in the market only seven have opted for AMD’s Brazos platform other 76 models are still having Intel Atom, there’s even one with Celeron-M processor and another with a VIA's ARM-based VM8505.

Well, with all this one point still continues to be confusing and that is differentiating between a netbook and a notebook, as some of the notebooks are in the price range of $350 to $450 including some E-series systems which ranges of $300-$450.

If we just scan over NewEgg we come across about 87 AMD based laptops of which 54 are either based on Brazos or Liano, which suggests that the company’s mobile market has been growing throughout the last quarter. Whereas, Intel has over 400 models in the market and leads it AMD's share of about 18 percent makes it second. Although the company is growing but it does not mean that the company has acquired about 18 percent of the market share.

Analysts don’t believe that the netbooks are going to disappear from the market even though their sales are falling. They only believe the prices of the netbooks are to fall from $300 to $200-250 and shipment to increase by the second half of 2012 as Digitimes have reported.

So far we have been waiting for the delayed Cedar Trail-M platform from Intel, which may even be a part of the reduced sales. After its release Intel may even reach to a higher position making a new boundary with its sales.

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