When I first read this article over at CNet about AMD and their decision not to get into the Netbook arena, my first response was ‘Why?’ One would think that from all of the hype about Netbooks and just about every OEM having their own Netbook models, that this would be a lucrative investment. But according to those in charge of AMD, they do not feel that this is the case.

In fact this is a statement from the AMD CEO:

Just to set the record straight, here’s what AMD Chief Executive Dirk Meyer said Thursday: “We’re ignoring the Netbook phenomenon–just thinking about PC form factors above that form factor.”

Than there is the statement from Bahr Mahony, director of notebook product marketing at AMD:

Mahony added that the dissatisfaction with Netbooks “has been exhibited by the high return rates that have been seen on these mininotebooks.”

There may be more to this than what meets the eye. My next thought was that AMD might not have the resources to play catch up with Intel’s Atom chip. We are all familiar with the problems that AMD has faced this past year.

But maybe AMD knows something about what is going on in the Netbook market. By hanging their hats on laptops only, their strategy could pay off in the long run. Only time will tell.

Comments welcome.