During Intel's 2009 IDF Keynote delivered by CEO Paul Otellini, he talked about the astounding Netbook that was the fastest growing device in the last three years. He compared the Netbook with the Nintendo's Wii and Apple's iPhone. According to Otellini there was no looking back. Oh how things could change in the blink of an eye.
2009 IDF Keynote Slide: Netbook vs. Wii and iPhone
Paul Otellini's narrow view of Apple's iPhone in contrast to the Netbook was short lived. In fact, in August, Forbes reported that "Apple's iPhone Is Now Worth More Than All Of Microsoft." Ouch!: that one had to sting. And it's only been downhill from there.
Now a new report published today states that Intel may be forced to readjust its roadmap for PC-use Atom processors as their top two vendors, Asus and Acer are both dropping netbooks from their line-up.
According to the report, "Asustek CEO Jerry Shen recently confirmed that the company will stop production of Eee PC netbooks using Atom-based processors such as the N2600 due to impact from tablet PCs and notebooks, as well as a sharp drop in demand in emerging markets. Asustek plans to have its Transformer tablet PCs fill the 10-inch mobile device market, replacing its netbook product line."
Sources for the report went on to state that "Intel's Atom N2800 and N2600 processors for netbooks and Atom D2700, D2500 and D2550 processors for nettops are expected to see their shipments drop close to 50% in the fourth quarter."
Otellini's short lived vision of the netbook ruling the technology landscape was obviously deeply flawed. Apple clearly outplayed them, plain and simple.