Intense Intel-AMD rivalry set for light laptops

The chief executives of Intel and Advanced Micro Devices indicated this week that competition will heat up in the market for sleek, inexpensive laptops running Windows 7.

Both CEOs addressed this new market during conference calls after their companies reported earnings this week. Ultrathin laptops are inexpensive, light laptops--typically between $500 and $800--that are sold in a market segment just above less expensive Netbooks.

Intel CEO Paul Otellini on Tuesday said his company is gearing up to supply more power-efficient chips that contain two processing cores for better performance. "The bulk of the units that have shipped to date were single-core versions of the products," Otellini said. "You'll see a number of laptops show up in retail with the dual-core versions for the holiday season...more ergonomically designed, thinner, lighter," Otellini said.

HP's Pavilion dm3 starts at $549 with an AMD processor and $649 with an Intel processor.

(Credit: Hewlett-Packard)

And AMD's CEO Dirk Meyer chimed in on Thursday. "You'll hear more...next month about the product lineup that we'll be rolling out over the next two years, which will include increasing focus on those small form factor notebooks," Meyer said during AMD's conference call. In the more immediate future, Meyer said AMD will have a "broader assortment of (ultrathin) platforms walking into the Christmas cycle."

To date, this new category of laptops has had a minuscule market-share impact because there was little perceived difference between a Netbook and an ultrathin, according to Bob O'Donnell, IDC research vice president. "A lot of people said this is not actually that much faster, so you're going to see a very rapid transition to all dual-core," he said.

Windows 7 should accelerate sales too. "I think we will see better sales next year," O'Donnell said, as HP, Dell, and others bring out ultrathins with Windows 7.

The category received a boost recently with the rollout of HP's Pavilion dm3, which starts at $549 with an AMD processor and $649 with an Intel processor. The dm3 is expected to be available starting October 22 with the launch of the Microsoft Windows 7 operating system.

Other high-profile ultrathins include the $548 Acer Aspire Timeline (at Wal-Mart) and the $549 Dell Inspiron 13.

Because ultrathins are more expensive than Netbooks, they are more profitable for Intel. "Part of Intel's strategy is to pull people up from a Netbook," said O'Donnell.

AMD, on other hand, is focusing solely on the space "between Netbooks and mainstream notebooks," Meyer said, adding that AMD, in effect, created the ultrathin category with the introduction of the 12-inch HP Pavilion dv2 back in January. "We created that category really in partnership with the HP," Meyer said.

[dadsgravy]

Did you here the one about the two guys who fought over a retarded poop eating goat? If not, scroll up.

[dadsgravy]

hear not here. Damn. Now it's forever.

[RompStar_420]

I have servers with both Intel and AMD and I can't tell any difference. Whatever :- )

[shitstack]

Agreed. Its not like the old PowerPC vs Intel wars.

[windooor7]

THIS battle of netbooks will end sooner than WELL thought out. Lets say, apple comes with a 800 IPAD (10"), @ 800 US$ then 400with verizon 3g 2 year contract . then come out with a baby ipad( 7")500 US$(299 with at and t 3g@2 year contact. Now lets look at capablties, Familar iphone os, familar iphone looks,with all the iphone inheritance(hd recording,5 mega pixel, app store, = e_reader.)
THIs will end all netbooks ,buisness. out there ,chew up ,kindles.

[ktswami]

No difference, except for that 20% Intel tax we've been paying for years and years, while they threatened OEMs that tried to include AMD chips while back...thank you, EU, Japan, Korea...no thank you, US DOJ.

[Otto Holland]

I have servers from both companies too but I can tell the difference.
Server (A) HP DL365 with dual - dual core Opteron runs cooler than an Intel. Quiet and less fan activity.
Server (B) Runs Intel Xeon, noisy and runs hot like the exhaust from a truck. Same Dual -Dual but uses much more electricity.

[Forked_Tongue]

Unless they have a dual core processor, discrete graphics, and less than $400 not interested. I already own a netbook and a dual core laptop, and most people I know are similar, unless they give us way to replace both then they should instead focus on one group, the netbook or the other, low end laptops. I would never consider spending over $300 for a single core product, all they did with the previous iterations was confuse some customers and for others forced them into the group they didn't want to head them towards, netbooks.

[3tire]

Or they could be someone who doesn't see the need for an expensive laptop. I do most of my heavy lifting on a desktop and have a netbook primarily for communication...email, skype, IM, and spur of the moment web info requests.
Unless you get one issued to you for work purposes, a laptop is an over-expensive toy that people will realize is pretty much useless.

[msolution]

single cores are outdated, even from the programs point of view, ... my last laptop had a single core, and almost crashed as soon as i opened more than 2 programs! ... i like laptops for they take less space, and i take it with me to the coffee shop to work! netbooks... na... i would have to squint and scroll to see what i'm typing