4 reasons why Netbooks are good for the industry
There has been a lot of conversation that netbooks are cannibalizing notebook sales; and I can understand why. I really don't know which side of the fence I sit on but I ran across this post from Mike Elgan, Columnist at Computer World who argues that overall, netbooks are good for the market. In his words: - The economic meltdown. People aren't buying anything nowadays. Car sales are down.
- Luxury goods of all types are in the toilet. Desktop PCs are particularly vulnerable because most people already own functioning systems, and consider upgrading simply for better performance to be a needless and costly luxury. A long-running trend from desktops to notebooks. As notebooks have increased in power and declined in price over the past decade, their relative sales have risen compared with desktops.
- Windows 7. Microsoft has been far more vocal about Windows 7, and many people are waiting for it now.
- A lack of innovation generally. Desktop PCs are the least innovative areas of consumer technology. For the average user, literally nothing compelling has happened in the desktop PC space since flat-screen LCDs. One WIRED blog suggests that netbooks are "killing PC innovation." I think the opposite is true. I think PC vendors aren't innovating, and that's contributing to the general public apathy toward PCs.
I have to agree with Mike's analysis. I recently bought a Classmates PC for my little one and she loves it. I, personally, have no interest in a netbook for myself since I tend to use several applications that require substantial processing power (i.e. the Adobe Suite, Sony Vegas, Outlook - all at the same time). However, I have to admit that I do use it to check email and login to Facebook when my wife is hogging up my laptop. In my mind, it's clear to me that netbooks are a companion device; at least it is in my house.
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Comments
Feb 05 | Charles said:
4 reason why I bought my netbook.
1. great quality and affordable!
2. it's mobile. I can take it anywhere and it doesn't burn my lap
3. I can fit it in my man bag...
4. It's cool; and everyone always asks me where I got it when I am at the coffee shop.
I have the Dell Mini and i love it.
Feb 11 | June said:
I love my netbook. Not only was it affordable but it's so convenient to use just about anywhere.
I think we will continue to see a surge in netbook sales in the coming months, at least until the economy picks up.
Mar 02 | Stuart said:
This article is very interesting and helps clarify some questions I had regarding Notebooks.
Thanks And Keep us updated!!!
Stuart
Laptop Computers
Oct 09 | Bill said:
Form factors are mostly a transient issue for Intel. Already, leadership in producing the transistors, gates, etc at the best price/performance ratio has given Intel room to strengthen other things -- architecture, marketing, etc. As many have said, the biggest threat to that leadership in production technology and the physics of miniaturization is the physics of power consumption. Performance advantages from innovative architectures have already been hard for Intel's competition to maintain -- largely because Intel continues to improve its own architectures while holding a LEAD in production physics. While competitors arguably hold low-power advantages now, there's little reason to believe demand for system sophistication will abate before Intel masters low-power physics. With priorities adjusted toward low power, Intel will continue to improve its production physics to meet the demand shift from performance/dollar toward performance/joule.
So -- desktop, notebook, netbook, or MID -- leading physics & production will mean a little room to grow competitive architectures. Fundamentally, INTEGRATION of more functions onto dies will continue to favor Intel, as it has since Day One. High volumes work for Intel -- and will likely continue to work as greater penetration leads to greater replacement volumes even at the same functionality. Notably, consumers have shown reluctance to replace $25,000 cars every three years; but don't hesitate to replace $200 cell phones every two years.
Net ... commoditization at a highly integrated level is good for consumers; it will mean more electronic smarts in more places at better prices. It's good for the world's top-tier IC makers; their investments and IP make them hard to catch. Is it good for "the industry"? Which industry? Yes, it's good for the IC industry, good for top-tier researchers in semiconductor physics. It's surely good for volume retailers (BestBuy/Fry's/Walmart) who are adept at selling more items at lower prices. However, not all system integrators are able to command the margins Apple does. For them, this form of commoditization is a mixed blessing.