Why Intel doesn´t like 12 inch netbooks

There is an article at tech crunch about the dislike of Intel in regard of a 12 inch notebook with Atom proc. I think it´s not only the loss of sales for bigger mobile procs. The problem is more wide-ranging. The cheap x86 procs for servers are largely subsidised by the desktop sales. It´s almost the same die, thus the development costs are shared, the manufacturing costs are shared. It´s classic economy of scale … it´s the reason, why a Intel Xeon is cheaper to produce than a RISC CPU. Without the desktop sales you have to increase the price of your server CPU or reduce the margins (server CPUs are an high-margin business) Now let´s assume you have a different architecture with different design targets, thus it isn´t possible to share the development costs. This can severely disrupt your business modell. You can´t share the costs of your server procs with all the desktop sales. As i wrote before: The current dominance of x86 servers are an result of the decision of a finnish computer science student and many gamers, because the fact that the dominant gaming os runs on it x86 only. Thus Intel has a vast interest in not selling Atom in all possible markets. I perfectly understand Intel that they don´t like 12-inch netbooks. 10 inch displays are to small for many people, but 12 inch is a different story. This the upcoming netbooks and nettops have may have an interesting effect to unrelated markets by changes in the cost models due to decreasing sales.