"It's a transition phase, give it some time and let the economics of scale come into play. We'll see some kind of stronger improvement of these devices," McCarron said.
But as Atom netbook chips fade away, the category is being taken over by Advanced Micro Devices' Brazos chip, which is closely related to markets that netbooks played in, McCarron said. The Brazos chips have sold well through products like HP's Pavilion DM1Z laptop, which has an 11.6-inch screen.
"There's a battle that's breaking out there," McCarron said.
Atom processors are also in smartphones, tablets and servers. Atom chips are also selling well in embedded devices.