Tech news site Fudzilla said that Intel needs to "drop pricing in order to compete" in the mobile market.
The new 1.5GHz Intel Atom Z670 is Intel's latest effort to offer a credible alternative to ARM processors in mobile devices such as tablet computers.
However priced at $75 each, Fudzilla's Fuad Abazovic pointed out that the processor was over three times the cost of a dual core ARM Cortex A9 chip such as the Nvidia Tegra 2.
"We strongly believe that Intel needs to drop pricing in order to compete in this market," Abazovic said.
Intel x86-based tablet manufacturers not only face the prospect of buying an expensive stand-alone CPU from Intel but will also need to procure the support SM35 chipset as well.
Licensed ARM processors are readily found in system-on-chip devices from a variety of competiting semiconductor manufacturers.