Last week we had a nice discussion with Intel, and we learned that Intel believes that its Atom platform creates a brand new market for Nvidia, and that it doesn’t affect notebook sales.

Notebooks are for users that want a fully functional machines, while netbook with its single core CPU, limited amount of memory and up to 10-inch screen has a lot of limitations.

Intel believes that Atom based netbooks are creating a completely new market, while notebooks are continuing to sell on a business as usual model. We beg to differ, as we believe that the netbook market is growing at the expense of entry level notebooks, but we do agree that many notebooks users go out and buy a cheap and light alternative for fun, but this would be a more limited market segment.

The biggest threat for Intel is that netbooks, with 33 to 35 million unit shipments in 2009 as predicted by some market research companies, might take a large chunk of entry level sales for Intel notebooks, and hurt Intel’s average selling price. This is not something you want to do, especially in recession stricken 2009.