Update: Intel runs out of Atoms - report

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Demand for netbooks is so high that Intel isn't accepting orders for its Atom Z microprocessor any more, according to a report.

Digitimes, a Taiwanese wire, said that Intel has almost run out of stock of the CPUs, although it will fulfil existing orders.

The same report adds that Intel wants to define clearly the difference between CPUs for mobile internet devices (MIDs) and for netbooks.

But if that's the case, the genii is already out of the bottle - netbooks have been a runaway success, largely because they're seen as affordable alternatives to more highly featured notebooks.

Intel has always had the fear that the Atom range of microprocessors - very much cheaper than those used in fully fledged notebooks - could cannibalize its business model. More here.

Update: 5:03pm EDT: Intel reacted to teh Digitimes report with a brief statement: Rumors of "industry sources" stating that Intel is no longer taking orders for Atom Z processors are 100% inaccurate, a spokesperson told TG Daily.