Atom Chip Could Cut into Intel’s Traditional Processors

Intel could witness a drop in the sale of its higher-end chips if the Atom chip is used more frequently in sub-notebooks, analysts said on Tuesday after the launch of Fujitsu’s new LifeBook U820.

Atom chips are low-priced and low-power processors that are already widely used in notebooks designed for Web surfing and other Internet-based activities like e-mailing and chatting. However with the recently-launched tablet PC from Fujitsu, the LifeBook U820, atom chips are now being used in laptops with small screens, multimedia and networking features with increasing frequency.

Except for its screen size, the mini note-book U820 comes with most of the capabilities of a traditional laptop. It is especially targeted at consumers and mobile users who are looking for touch technology. According to Kevin Wrenn, senior vice-president of PC business and operations at Fujitsu, the low cost and low power features of Atom chip proved to be major advantages over other chips when it came to deciding on the right chip for the new mini-notebook. Even upcoming laptops with screens up to 12 inches would prefer to incorporate the Atom chip, said company officials.

The fact that newer models of mini-laptops are adopting the Atom chip shows that the Atom has come of age and may offer tough competition to the more expensive chips traditionally used in laptops.

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