Monday, July 21, 2008

Net-tops and ultra-light Notebooks pose paradox for PC manufacturers


According to a New York Times story this morning (July 21) by Matt Richtel (on page C1, Business Day), the personal computer industry is competing with itself too much as if offer ultra-cheap notebooks with little memory for checking email and web surfing. They may be intended largely for travel, and one wonders if a sophisticated cell phone could do just as well.

The industry will also introduce “nettops”, low-cost replacements for desk tops intended only for Internet access.

But some manufacturers see the trend as dangerous because if offers little margin to add to the bottom line. Microsoft has stopped selling XP but will reportedly offer it on very low cost machines like these.

The link is here (may require registration), the story title “Smaller PCs Cause Worry for Industry.”

Small, simplified notebook miniaturization technology is also essential to Nicholas Negroponte 's "One Laptop Per Child" worldwide initiative (with non-Windows operating systems).

I would be concerned that the sinking dollar and increased shipping costs from Asia would reverse the trend for lower PC prices, but I don’t personally see that when I browse dell.com

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