The Atom processor has changed the PC landscape. Low price PCs are becoming increasingly prevelant. People don't need the computing power of high-end processors so why pay for the excess capacity. The industrial PC sector is especially attuned to price. IPC customers usually buy embedded systems to be used for a single purpose e.g. being installed in a kiosk or digital signage player. They therefore don't need the full power of a normal processor. The impact the Atom processor will have in the IPC industry is uncertain at best.Will IPC profits fall? Maybe! Digitimes doesn't seem to think so:
Recent market reports that Intel's Atom standard platform has dropped below US$100 have prompted speculation that the new platform could have a possible impact on IPC (industrial PC) makers' profits. But sources at IPC makers have pointed out that although the standard platform could have an impact on the market, the affect will be limited.
The main selling point of IPCs is customization, therefore no matter how cheap the atom standard platform becomes, it will still face difficulties when competing against products developed by specialist companies who are able to add additional value to their products, the makers contended.
IPC makers said they may consider adopting the Atom standard platform for offerings to the system integrator (SI) or international trader market segments, which give priority to low-pricing, however, these buyers will face possible risks down-the-road if Intel decides on a lower than average life-cycle for the platform.
Some IPC makers are already developing Atom based platforms. It will be interesting to see how these products pan out and what the market up take is. For now I guess it is a wait and see game for the IPC industry.
Article: Low price Atom standard platform to have limited impact on IPC makers
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