Intel: be realistic about low-cost “netbook” subnotebooks
By John Pospisil
Intel is warning consumers about the limitations of low-cost, low-power subnotebooks, such as the ASUS Eee PC and Acer Aspire One, although the chip manufacturer does believe there is a bright future for this type of device.
Speaking at Influence Forum 2008, Intel’s Australian marketing manager, Kate Burleigh, said that consumers need to be realistic about what to expect from “netbooks” (Intel’s term for low-cost subnotebooks).
“We don’t want a consumer to buy a netbook, thinking it’s high tech, only for them to be disappointed,” said Burleigh.
“We’re trying to position netbooks for people who want to consume content. If you want to create content, you may find that these devices are quite limiting.”
According to Burleigh, a typical Intel-based netbook includes:
- The Intel Atom processor N270 at 1.6GHz
- The Mobile Intel 945GSE Express Chipset with the ICH7M
- A 7”-10” screen, 802.11b/g WLAN, and mini-keyboard
- 400MHz or 533MHz memory, 256 to 512MB RAM
- Linux or MS XP Home OS
- 2-4GB of flash based storage and no hard drive or optical drive
- Estimated system price point of between AUS$500 to AUS$700.
“Originally it was thought that these devices were for emerging markets, but we now see that there is a market for them in fully emerged markets like Australia, where we see them as a companion device to a full-size computer.”
According to Burleigh, Intel is encouraging retail staff to ask what consumers are wanting to do with their notebook before the sale is made.
Burleigh also suggested that journalists attending the forum should advise their readers to “identify their need before making a purchase”.
On the other hand, Burleigh was quite upbeat about the future of netbook category, arguing that netbooks were perfect for certain types of applications, such as low cost computers for young children, or for responding to email when out and about.
The cynical among you might think that Intel is “positioning” the netbook in order to minimise cannibalisation of sales of full-size notebooks (and the fatter-margin processors they contain).
When I put this to Burleigh at the conclusion of her presentation, her response was that Intel believes that sales of full-size notebooks are driven by entirely different factors. She cited recent record sales of Centrino 2 notebooks in Australia as an example of sales driven by innovation, rather than price.
“Quite sincerely, we just want to ensure that consumers are not disappointed,” she said.
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September 22nd, 2008
Note how the “average” netbook specs according to Intel are actually all on the low-end of netbooks being released today.
Dell’s Mini comes with 4GB-16GB of SSD storage and 512 MB – 1 GB of RAM. Toshiba’s NB100 will have up to 160 GB of hard drive space. MSI Wind comes with 80 GB of hard drive space. Acer Aspire One is available with 8 GB SSD or 120 GB hard drive, etc. etc.
Beware, don’t use your netbook for creating content, it may explode with these low specs.
Be skeptical. The new netbooks have computing power that’s comparable to iBook G4s — granted their video cards were better, but one would hardly say that iBooks were only suitable for accessing content. Many students, graphic artists, and content professionals would disagree.
Attach a netbook to an external monitor and you’ve got yourself a great little desktop and laptop!
September 23rd, 2008
“According to Burleigh, Intel is encouraging retail staff to ask what consumers are wanting to do with their notebook before the sale is made.”
How inept is the retail staff in Oz? Is this really something that needs to be said?