Tag: netbook

Intel wants $299 hybrid 2-in-1s

Intel-logoIntel said yesterday it will host a symposium in Taipei to discuss the development of 2-in-1 hybrids with supply chain partners. The event is part of Intel’s push for cheaper x86 devices, which could take on ARM-based tablets, at least in theory.

Intel knows that x86 tablets are simply too pricey to compete with ARM tablets, both on the hardware and software fronts. However, if it manages to push prices down, upcoming 2-in-1s could still be competitive.

Intel VP and general manager of global ecosystem development Zane Ball told reporters that he expects prices of 2-in-1s to fall next year, thanks to lower component costs. He said most companies are currently capable of delivering $399 devices, but the real challenge will be getting the price down to $299, reports Focus Taiwan.

It won’t be easy. At the moment there are just 15 products that fit Intel’s 2-in-1 spec and the number is expected to grow to 60 designs next year. These are hardly impressive figures and many analysts believe Intel will have a very tough time marketing the devices, especially if prices remain high.

However, although $299 is still not enough to combat cheap Android tablets, it is still an interesting price point. Cheap 2-in-1s could do well in some niche markets. They sound like the perfect upgrade for netbook users and they could steal some market share from Google’s ultra-cheap Chromebooks.

Higher end models could be a replacement for ultraportables and small Ultrabooks.

Chromebooks defy slow PC market with strong growth

chromebookDemand for traditional desktops and laptops has been waning for years and the last two quarters saw the biggest slump in PC shipments in decades, but Google’s Chromebooks have bucked the trend.

Envisioned as cheap alternatives to Windows based laptops and netbooks, Chromebooks are cheap and cheerful, usually priced between $199 and $299. Although the market is still on a tablet binge, consumers seem to be quite interested in Chromebooks as well.

NPD estimates that Chromebooks have already managed to seize 20 to 25 percent of the sub-$300 laptop market in the Land of the Free. Overall, Chromebooks had a 4 to 5 percent market share in the first quarter, up from one to two percent a year ago.

That is a pretty impressive share for a category of products that practically didn’t exist a year ago and even today many consumers have no idea what a Chromebook actually is. NPD analyst Stephen Baker told Bloomberg that he was initially sceptical, but he now believes Chrombooks have managed to find a niche in the marketplace.

“The entire computing ecosystem is undergoing some radical change, and I think Google has its part in that change,” he said.

The untimely demise of the netbook also played a role in the Chromebook surge. Although netbooks weren’t that big among average consumers, they were essentially a good way of getting very cheap yet fully functional computers to schools and other institutions on a budget.

Chromebooks are just more of the same, but their success beckons the question – couldn’t have Intel and Microsoft played their netbook cards a bit better five years ago? After all, Google seems to be proving that there is still enough room for dirt cheap laptops, in spite of the tablet juggernaut. It seems Intel made a terrible strategic miscalculation with Atom cores.

Five years ago Chipzilla didn’t want to peddle high-volume low-margin chips, yet now it is struggling to come up with competitive mobile SoCs, which are basically an evolution of the original Atom concept. Maintaining higher margins and appeasing the Street with good quarterly results seems to have been more important than a comprehensive long-term mobile strategy.