Original URL: http://www.theregister.co.uk/2009/05/27/intel_netbook_cannibalisation/

Intel plays down netbook 'cannibalisation'

There, there

By Kelly Fiveash

Posted in Hardware, 27th May 2009 15:55 GMT

An Intel exec claimed today that the dive in computer sales many have blamed on cheap-as-chips netbooks was currently at about 20 per cent, "less than speculation".

Chipzilla's EMEA sales boss Christian Morales told Reuters netbook sales accounted for 16 per cent of all notebooks flogged worldwide.

He added that the figure was a little higher in western Europe. In Blighty and Italy netbook sales may be as much as 25 per cent of notebook sales.

"We have seen some cannibalisation of Celeron by Atom," Morales said, referring to Intel's processors for lower-priced notebooks.

Intel pulls in higher profit margins for Atom than its older Celeron chips, he said.

"From an inventory standpoint, we think it is really optimised for current levels of business," Morales said. "Supply-chain confidence is much higher."

Take-up of new notebooks loaded with Intel processors had been sluggish in eastern Europe and Turkey, according to the firm's EMEA salesman.

Morales said Intel was keen to flog budget netbooks in Africa, but added the cost of web access needed to be lowered first.

"This is where we are working very actively with governments," he said. ®