Laxman.R

Intel Is Nervous About New 12 Inch Netbooks

Good point.
High margin CPU's (Core 2 duo/Quad-core etc) will take a beating if netbooks proliferate upwards thru the value chain. Intel achieves phenomenal yields on Atom (high 90s), which makes the Atom's cost basis very low. There are margins there - which on an aggregate will be high due to the volume play. But you are right in pointing out that Atom will cannibalize sales in the volume and performance segment.