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Intel ATOM: The Future Cash Machine?

by linathael . Original by Lionel - 31/03/2008 09:27:01 CEST - Source: TGdaily
Intel surprised the market when announcing its Atom CPU, previously code-named as Silverthorne, and aiming to power future Mobile Internet Devices (MIDs) and Ultra Mobile PCs (UMPCs). The surprise was not coming from the technology achievement behind such announcement, but by the price of such CPUs: raging from 29 et 49 USD.
some analysts immediately question the financial profitability of such CPU models, and recent information should convince them that this is no issue. Intel is reported to expect manufacturing 2500 ATOM per 300mm wafer, with an estimated yield of 90%, is production cost vary from 4 to 8 USD and retail price from 29 to 49 USD, one can quickly define the substantial margin generated by the founder.
For sure, ARM CPUs as well as VIA CPU has to be ready to face a stronger competition in a near future, and we should not be surprise to see the ATOM ending up into some Apple-branded device.
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