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Windows Growth Slows, are Netbooks to Blame?

Justin Kerr — Sun, 09 Nov 2008 15:29:56 -0600

As hardware junkies, we have little trouble justifying our desire for netbooks. Microsoft on the other hand, is having a huge problem trying to figure out how to cash in on the craze. According to new research conducted by Bloomberg, Microsoft’s historic stock plunge of over 40 percent this year alone can be tied in part to the success of netbooks. These sub $500 PC’s are by far the fastest growing segment in the computing industry. And unfortunately for Microsoft, many of these devices don’t ship with Windows.

Internally, Microsoft estimates that around 70 percent of netbooks run at least some version of Windows. This is a far cry from the over 90 percent market penetration they enjoy in the notebook and desktop segments. Additionally, since the vast majority of netbooks run older versions of Windows, margins are much thinner. The OEM licensing fee of $40/$50 for Windows XP is a drop in the bucket when you compare it to the $100 or more they expect for Vista. Bridging the revenue gap isn’t as easy as raising the price for XP either. Especially when you consider that it only costs around $5 to deploy a version of Linux. The Microsoft tax is widely debated by netbook manufacturers who are scrambling to keep sticker prices low. As a result, Microsoft has cut projections for Windows growth in Q4 to as little as 2 percent. Earlier in the year they were estimating growth of around 9 to 10 percent.

While Microsoft might suffer in the short term, it appears the long term strategy is to address netbooks with the upcoming release of Windows 7. During PDC last week, Steven Sinofsky showed off a $399 netbook running the new OS. And according to Senior Vice President Jon DeVaan, “People will be pleasantly surprised and excited by how Windows 7 runs on low-cost machines”. The over arching question here is if Linux will gain any long term momentum as a result of its new found market penetration. I guess only time will tell.

So would you rather a faster netbook running Linux, or a slightly slower machine with Windows?

Hit the jump and let us know.

ThinkFree Launches Office Productivity Suite Alternative for Netbooks

Paul Lilly — Thu, 23 Oct 2008 10:13:44 -0500

As new netbooks continue to march into the market, it's typically the hardware that garners most of the attention. Some models sport solid-state drives (SSDs), while others keep it old school with a traditional hard drive. But all of them share two key characteristics - reduced screen real estate and gimped performance - that have opened up a market for specialized software.

Enter ThinkFree, who this week launched its ThinkFree Netbook Edition, a software solution encompassing an assortment of productivity applications designed for netbooks. Unlike standard office suites, ThinkFree claims its new software has been optimized for small screens and limited hardware resources inherent in Intel Atom chipset-based netbooks.

"Netbook users are demanding applications that are built to not only meet, but make the most of the unique characteristics of this new device category, (and) Netbook OEMs (original equipment manufacturers) can now offer their customers just that by pre-installing a customized, device-tailored version of ThinkFree Netbook Edition," Su Jin Kim, ThinkFree's CEO, said in a statement.

ThinkFree Mobile: Netbook Edition is available now with support for Windows, Linux, and Mac OS X. And from now until October 31st, the company will give away a copy to anyone willing to fill out a short survey.

Asustek Aims to Ship 20 Million Laptops in 2009, a 77% Jump

Paul Lilly — Wed, 22 Oct 2008 15:25:43 -0500

It doesn't matter that most power users would rather use a desktop replacement notebook in place of a lower cost (and much longer lasting, in terms of battery life) netbook, demand is hot and Asus has plans to stoke the coals. Asus Chairman Jonney Shih sees his company shipping 20 million laptops in 2009, which would mean increasing its output by 77 percent.

Should Asus meet its lofty goal, it would become one of the world's top four laptop makers. Not all of the laptops Asus sells are low-cost units or ultraportables, but many of them are and the market for netbooks doesn't appear to be slowing down anytime soon. According to iSupply, the global notebook PC market will grow 20 percent next year, with the netbook segment twice as active with a 55 percent growth rate. That puts Asus in good position, who's Eee PC line can be argued sports a name brand recognition advantage over its competition.

November Forecast Calls for MSI 3.5G Wind with No Signs of Touchscreen

Paul Lilly — Mon, 20 Oct 2008 09:40:51 -0500

November's shaping up to be a busy month, and it has nothing to do with Thanksgiving. On the desktop front, Intel's Core i7 platform is rumored to launch on November 17th, and in the mobile sector, MSI looks to launch its Wind U120 with built-in 3.5G before December rolls around, according to DigiTimes.

The new netbook will feature the usual assortment of components - Atom N270 processor clocked at 1.6GHz, 1GB of RAM, 120GB hard drive, and Windows XP - tucked underneath your choice of a white or black shell and will run about $550. MSI has been working with Taiwan-based telco Vibo Telecom to implement 3.5G functionality in the U120 and will look to do the same with local telecom providers in Europe.

What you won't find on the new netbook is a touchscreen. Asus is rumored to be readying a touchscreen version of its Eee PC line, but MSI cites high costs as a prohibiting factor for its Wind. Bummer.

Partition Problem Perplexes Early Dell Mini Inspiron 9 Notebook Owners, Now Fixed

Paul Lilly — Sun, 19 Oct 2008 18:44:28 -0500

Early batches of Dell's Inspiron Mini 9 notebooks had customers scratching their heads over what appeared to be a case of paying for a larger size solid state drive but receiving a smaller one instead. How else would you explain paying for a 16GB SSD only to find 4GB of usable space in the default shipping state?

The answer, says Dell, is a partitioning SNAFU. The confusion stemmed from Dell using a 4GB Ubuntu image for new installs regardless of the SSD size, causing some customers to "freak out" before discovering the unused and unpartitioned remaining space. The problem has since been addressed, but if you own an early model with the incorrect partition scheme, running the included system restore DVD partitions the entire drive and makes the world right again.

One Year Later, Asus Eee PC Breaks $300 Price Barrier, Still Sucks

Paul Lilly — Sat, 18 Oct 2008 16:19:05 -0500

It may have taken Asus a year to get there, but the ultraportable Eee PC has finally been spotted for an ultra-affordable price tag. For a copper Lincoln shy of $300, Best Buy is currently selling the Eee PC 900A with an Intel Atom N270 processor clocked at 1.6GHz on a 533MHz frontside bus. Other goodies nestled inside the netbook include 1GB of DDR2 memory, a 4GB solid-state drive, 8.9-inch WSVGA widescreen display, integrated graphics, WiFi, and three USB 2.0 ports all running on Linux.

Kudos to Asus for finally offering a model priced in line with its specs, though Asus isn't the only guilty culprit to avoid doing so up to this point. Despite the immense popularity of netbooks in general, many models regardless of vendor have nipped at the heels of traditional laptops in terms of price, which generally offer more power, more storage space, and, well, more of everything. Asus new 900A puts some much needed distance between the two sectors, which is great for anyone looking to pick up a mini-notebook. Then again, no matter what the price, cynics it's still a mini-notebook under the hood.

Worldwide PC Market is Growing on the Strength of Netbooks

Paul Lilly — Thu, 16 Oct 2008 10:45:11 -0500

In case you haven't been paying attention, the netbook sector is one of the hottest areas in the PC market. Demand has been so high that, despite a weakening global economy, mini-notebooks have played a large role in worldwide PC shipments reaching 80.6 million units in the third quarter of 2008. That's a 15 percent jump from this same time last year. Ironically enough, economic woes might be exactly the reason why sales have been so good.

"In the North America market, the economic crunch created more interest in the sub-$500 segment," noted Mika Kitagawa, principal analyst for Gartner's Client Computing Markets group. "Because the mini-notebook is still a new segment, it is too early to determine if the emerging segment created new market opportunities, or if it cannibalized lower priced systems."

Gartner notes that Asus and Acer have been two of the bigger beneficiaries of the emerging mini-notebook sector, as both companies "had a strong focus and acted quickly." As a result, other vendors are playing catch-up, but it might prove difficult to reach the same level of market expansion that Asus and Acer have been able to reach. Acer especially had a good third quarter, recording a 47 percent growth in worldwide PC unit shipments from Q3 2007.

Anyone think netbooks are a passing fad?

Samsung Jumps Back into US Notebook Market with a Varied Lineup

Paul Lilly — Wed, 15 Oct 2008 09:13:52 -0500

Samsung this week announced plans to re-enter the U.S. computer market with a lineup ranging from ultraportable to desktop replacements aimed at business professionals. On the lighter side, Samsung's X-Series looks to position itself as a strong competitor to Apple's MacBook Air, and the company isn't shy about letting this be known.

"These products really go after Apple and Sony," said Bret Berg, senior product manager for Samsung's U.S. computer division. "This is the MacBook Air killer."

Samsung will look to back that statement with its X360, a 2.8-pound notebook measuring 1.2 inches at its thickest point and sporting a 13.3-inch display. For $1,900, the X360 comes with a 1.2GHz Intel Core 2 Duo U9300 processor, a 120GB hard drive, and 4GB of DDR3 1066MHz RAM, whereas the $2,500 model steps up to a 1.4GHz U9400 chip and a 128GB solid-state drive, or twice the storage space of the Apple Air selling for $2,600.

For those who need a little more screen real estate, the X460 bumps up to a 14.1-inch display while adding in discrete graphics (GeForce 9200M GS 256MB) and a DVD burner. Like its slightly smaller sibling, the X460 will come in two flavors. The $1,700 version buys a 2.0GHz Intel Core 2 Duo P3750 processor and 250GB hard drive space, or pony up $100 more for a 2.26GHz P8400 chip and a 320GB hard drive.

E-tailers will start carrying the new lineup in mid-November.