In a conference call about the financial condition, Paul Otellini didn't attach much importance to the Atom chip, since it has only one third of the power the Centrino chips have.
Netbooks (shown here: MSI Wind): not suitable for complex applications.
Furthermore the Atom, according to Golem, is made for using the internet - complex applications like image editing are above its capacity. Otellini is said to have said that this is about something "no one of us would use” - thereby he is supposed to refer to the participants of the conference call.
The supply problems were confirmed, too. They are not caused by the low numbers of produced chips, but by insufficient test recourses for the complex chip. Intel wants to compensate those grievances.