Probably a couple of reasons. First, Intel doesn’t like 12-inch netbooks because they are deep into dual core territory, where Intel has much healthier profit margins. For casual users a 12-inch netbook with an Atom chip works just fine, and they are buying these devices instead of more expensive dual core machines. Intel has put pressure on OEMs to build netbooks that have 10 inch or smaller screens.
This includes direct pricing pressure – Intel prices Atom chips based on the size of the device screen. Anything over 10 inches is priced higher than devices with 10 inch or smaller screens. We think this is an inappropriate way to price Atom chips.
Dell may also be seeing customers who would otherwise buy a dual-core 13-inch or 14-inch Inspiron choosing the lower priced (and less profitable) 12 inch netbook instead. That’s something they aren’t going to be happy about.
