That is the plan

Intel has informed its partners that its current single-core Atom 230 and dual-core Atom 330 will receive product discontinuance notice in April 2010.

This doesn’t mean that Intel will stop selling them at that date, but it gives computer OEMs a warning that in a few months after that time, Intel will sell the last batch.

It looks like Intel should be ready to stop selling first generation Atom by Q3 2010, which is roughly two years lifetime for the product and by that time, Intel should be finishing up the third generation Atom.

Once Intel announces that the product has reached its End of Life, partners cannot cancel their orders after that day or return the CPUs back to the big daddy. New Atom D410 and D510 for desktops are starting to ship in Q4 for the dual-core and Q1 for single core.