Samsung, who is making a second attempt at trying to get traction in the notebook and netbook market in Australia, have been denied “preferential pricing” by Intel because of the size of their new netbooks.

According to the DigiTimes Intel is pulling the preferential pricing it had previously given Samsung because it believes that the form factor of machines using its Atom line of processors shouldn’t exceed 10.2 inches. Currently Samsung is planning an 11.6 inch N510 Netbook which will also stream HD video which is a process that put a lot of demand on a netbook chip. 

In Australia, Samsung is currently selling the 10.1 inch N120 mini notebook that has the Intel Atom processor.

They are also selling a 12.1 netbook with the VIA Nano processor. According to Intel, as netbooks continue to grow in size they are concerned that demand on the processor will exceed their specifications.

New Samsung netbooks slated for Australia are expected to exceed the size specifications set down by Intel.   

According to sources,in a new report given to manufacturers in Taiwan Intel claim that will pull preferential pricing for both Samsung and Lenovo because they offer products that break “restrictions on netbooks having a panel size of 10.2-inch or below.”

In May, Lenovo rolled out its S12 netbook with a 12.1-inch form factor. According to DigiTimes, Samsung is planning on rolling out an 11.6-inch Nvidia Ion-based netbook that is also in violation of Intel’s alleged size restriction.



Recently, Intel and Microsoft said that they were concerned that manufacturers were exceeding guidelines and that together they were seeking to limit the form factors on netbooks.

Microsoft is believed to be using Windows 7 operating system pricing as its leverage over OEM manufacturers to keep the size of netbooks at 10.2 inches or smaller.

It appears, from Intel’s play, that the financial front is likely the best way to encourage or punish vendors that don’t agree to the netbook size limit. The chip maker declined to comment on the reports, instead telling the DigiTimes that it “has long been pro-competitive.”

What is not known is whether processor warranties will be affected if a netbook exceeds guidelines.

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