While AMD is getting a proper pat on the back for the L335 dual core chip in the MSI U230 it’s been long known that AMD has no intention in playing in the netbook space.  This is why there are few (if any) 10 inch netbooks with an AMD processor inside of it.

It goes all the way back to 2008 where after lots of speculation and wonder AMD flatly stated that netbooks were a bad decision for the company and that they would avoid it.

Trying to fight with Intel isn’t an easy task and for years AMD hasn’t had the marketing dollars, R&D funding, or the innovation to compete with Intel in a meaningful way.  AMD processors have thrived on pushing  benchmarks not providing power savings.  While this is phenomenal in a gaming rig it has an opposite effect in netbooks.

PROBLEMS OF THE PAST

For long, netbook buyers wanted extreme battery life instead of extreme performance.  With it’s propriertary SpeedStep technology and constant race to make processors smaller Intel was built for netbooks and have enjoyed a commanding lead.  AMD saw the writing on the wall and have prevented themselves from joining the fight so it wouldn’t have to talk about experiencing any defeat.  Unfortunately their plan backfired and netbooks have seen tremendous success selling millions of units all over the world.  Still, none of this interested AMD.

AMD has only been able to think about dollars and cents.  When the computer costs only $250 or $300 there isn’t enough room for AMD to make the kind of product margin it wants to.  In 2009, AMD announced their Congo platform and we all waited for months for actual products to come out.  Those aren’t the actions of a company looking to push a platform.  In fact it’s just the opposite as Intel made sure netbooks would be ready to ship when they announced their Pine Trail platform.  Regardless of how insignificant AMD feels netbooks are, they can’t avoid getting into the game.

THE WAY AHEAD

Intel Atom processors aren’t just for netbooks anymore.  A whole slew of products from home theater PCs to eBook readers to tablet PCs are using netbook guts in different configurations.  Manufacturers and designs are making due with a market which doesn’t provide many alternatives for low-power computer with marketing power behind it.  Sure, Apple can talk about using their own chip but their one of the only companies who can get away with it.  A company which uses an Intel Atom processor has a built in audience of people who know what kind of chip it is and it’s benefits.  AMD has no comparable product which means it’s missing out in billions out of sheer arrogance and hubris.

There are threats that AMD will have a “real” netbook processor in 2011 but a part of me finds it hard to believe.  By then Intel will be at 32nm with their Atom processor fabrication and pushing their way to 24nm and smaller.  If AMD isn’t able to at least match them they’ll be playing a continuous game of catch-up they can’t afford to join.  This almost guarantees something surprising as the company can’t afford to say out either.

[Source - PC World, CNET]

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