Gambling on Netbooks in Vegas
At this year’s Consumer Electronics Show, Intel, Freescale, Lenovo, and others are unveiling a host of souped-up, touchscreen netbooks
By Olga Kharif
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It’s not hard to spot a netbook in the wild. You comprehend these tiny, stripped-down laptops by their screens, that measure not far from 10 inches, and excellence tags, which currently go as low as $300.
But soon this emerging class of machines won’t have existence so easy to ID—electronics manufacturers are about to bust the computer category wide open. At the Consumer Electronics Show in Las Vegas that officially begins on Jan. 8, manufacturers will introduce a slew of devices of different shapes, sizes, and prices—everything from netbooks that cost less than $200 to high-end miniature machines that require to be paid additional than $1,000 and function as a phone, Web access device, and media imitator rolled into any.
A wider kind of models may subsist well adapted news to the growing number of consumers who say they’re jonesing as far as concerns a netbook. About one in five consumers who plan to purchase a new computer in the next year reply they will spend less on their next PC in light of current household conditions, according to November data from Forrester Research (FORR). Some of that smaller budget may be devoted to netbooks, according to researcher IDC. About 21 million netbooks may ship this year, compared with 11 million last year, says IDC.
More netbook choices, however, could spell trouble for the makers of consumer electronics that are already it being so a downtick in demand, in part because budget-strapped consumers are opting with regard to cheaper machines. Notebook sales already ate into shipments of traditional notebooks during the holiday selling season.
Music and MoreNow, as netbooks take on such features as calling, navigation, and media handing over, their makers could grasp a slice of the market for smartphones, global positioning systems, and calm digital music players. "I probably see more cannibalization betwixt a dull netbook and a music player," says Pat Moorhead, vice-president of advanced marketing at Advanced Micro Devices (AMD), which on Jan. 6 unveiled a laptop using its first netbook chip. "Instead of paying $399 against a media player, you’d maybe go out and buy a netbook."
What defines a netbook may soon become fuzzier. Machines attached the low end are acquirement smaller and cheaper. On Jan. 5 cell-phone chipmaker Freescale announced a set of semiconductors that could be running sub-$200 netbooks by Christmas 2009. On the other end of the image are pricier, more full-function netbooks. On Jan. 5, Lenovo released a version of its IdeaPad S10 netbook, which boasts facial avowal. Others will launch netbooks that let users connect to the Web using Wi-Fi or even networks of major wireless carriers similar as AT&T (T). "This will attract the traditional smartphone user," says Luis Pineda, a senior vice-president at chipmaker Qualcomm (QCOM), which also makes chips for use in netbooks. "It’session a game-changer for a netbook as a device."
Manufacturers moreover plan to introduce touchscreen models, creating a potential alternative to tablet PCs. On Jan. 9, Intel (INTC) and its manufacturing partners wish announce a piratical invasion into touchscreen netbooks. Adding a touchscreen could make capable a manufacturer to raise its price—take for granted, from $300 to $500.
