Clouds swirl Even though Wall Street is enamoured with Transmeta, the clouds are swirling. Last week, IBM cancelled a project aimed at building a ThinkPad mini-notebook using Transmeta's Crusoe processor. It is time to take another look at the highly touted startup. Transmeta will could have better success in the Webpad market, an area Intel will probably ignore. The Webpad market, however, is a long-term deal.
Prices are currently too high for Webpads to become a big consumer hit.
As Kumar points out, however, Transmeta's backers are also the company's sole customers. Fujitsu Ltd. Sony will use the Crusoe chip in its VAIO PictureBook C1VN notebook computer, and Fujitsu will use the chip in two of its notebook computers. Hitachi is signed on to use Crusoe in three notebook computers and an Internet appliance. And then there's the losses. The company has a limited operating history, having only shipped its Crusoe chip in bulk this past September.