Intel Extends Microprocessor Lead Even as Atom Bombs

As media tablets became all the rage, netbooks took a downward turn in 2011, and as a result Intel's Atom processor and chipset revenue in the third quarter fell 32 percent compared to last year, according to IHS iSuppli. Things are only going to get worse. IHS iSupply predicts global netbook shipments will fall to 21.4 million units in 2011, down from 33.5 million in 2010.

The boom in media tablet sales has packed both upsides

"The boom in media tablet sales has packed both upsides and downsides for Intel-hurting its business in netbook microprocessors-nevertheless boosting its sales of chips used in data centers to support cloud computing," said Matthew Wilkins, principal analyst for compute platforms technology at IHS. "Because of its broad product line that addresses both the consumer and business side of the microprocessor business, Intel in the third quarter managed to outperform the overall market. Even with the company warning that its fourth-quarter revenue will fall short of expectations, the company on the whole is expected to expand its lead in the global semiconductor market based on its strong performance in the third quarter and the rest of the year."