Two years ago, the word “netbook” might have conjured images of a paperback about Web sites or online novels.
Today, the term is on its way to becoming a household word as the category of small, lightweight, inexpensive computers has grown from nearly nonexistent to become the hot industry segment.
They don't have the power of full-blooded laptops, but they offer the convenience of extreme portability and the ability to connect to the Internet through Wi-Fi and in some cases cell phones' high-speed data networks.
These attributes make netbooks a growth area in an otherwise down computer market.
With small screens – typically around 8 to 10 inches – netbooks fall in the gray area between smart phones and laptop computers. With two cell phone companies beginning to sell the diminutive computers, the lines are being blurred further.
Using the same strategy as they have for selling phones, Verizon and AT&T have begun selling netbooks at a subsidized, lower price in exchange for a two-year commitment to a data plan.
Although buying a computer at a phone store is a new idea, it's expected to catch on. Speaking to wireless industry executives earlier this year, Microsoft's president of entertainment devices, Robbie Bach, said that by 2012, a third of all netbooks will be sold by wireless phone companies.
The streamlined portable computers are shaking up more than the traditional model of computer retailing. The shift to netbooks is rocking computer manufacturing, as well. Sales of netbooks are forecast to double this year, even as overall PC purchases fall 12 percent, according to the research firm Gartner. By the end of 2009, netbooks could account for close to 10 percent of the PC market, an astonishing rise in a short span.
Low-cost netbooks also generate lower profits for manufacturers. While netbook sales continue to grow, there is concern that the growth comes at the expense of more lucrative laptop sales.
“A broad shift in the consumer market toward low-cost PCs would clearly put pressure on the revenues of nearly every player in the value chain,” according to a Sanford C. Bernstein & Co. research report this year.
In the United States, AT&T started the trend of selling netbooks in April with test marketing in some of its retail outlets. The ultra-portable computers feature modems that link to the company's high-speed, 3G data network. The company said last week that based on customer acceptance, it planned to offer netbooks from Acer, Dell and Lenovo online and in its stores by this summer.
Details such as price and technical specifications remain to be announced, though in the test marketing, the AT&T netbook sold for $50 with a two-year contract.
While AT&T tested the waters, Verizon plunged in. A week ago, the company rolled out a netbook from Hewlett-Packard for $200, discounted significantly from the $520 price of a comparable HP netbook from traditional retailers.
Verizon's required data plans cost $40 or $60 a month.
Verizon's netbook includes Wi-Fi and the ability to log on to 3G data networks worldwide. Early reviews have pointed out that the total cost over two years could be high depending on how heavily an owner uses the Verizon data network.
Some industry analysts expect that at least one U.S. cell phone company will begin offering free netbooks this year.
There is no precise, common definition of a netbook. They are generally described as lightweight, averaging around 2 or 3 pounds, with built-in ability to link wirelessly to the Internet. Netbooks typically contain slower processors than laptops, which reduces the drain on batteries and lowers their cost. The less powerful processors make netbooks ill-suited for heavy lifting such as editing photos.
Netbooks are designed to run online software more than installed programs. This means much of the processing will be handled by the Internet servers, so they don't have as much need for a robust processor. They typically don't have CD or DVD drives, which helps reduce weight.
Some run Linux operating systems, others run Windows XP, and a few run Windows Vista.
Netbooks, by some definitions, typically run on chips made by Intel or AMD. San Diego-based Qualcomm is pushing a similar category of portable devices that run on top-of-the-line cell phone chips. That makes the Qualcomm-based devices more like scaled-up smart phones, while netbooks based on Intel's chips are similar to scaled-down laptops.
To distinguish from the laptop-related netbooks, Qualcomm uses the name “smartbook.” The devices will feature “always on” and “always online” networking, similar to a BlackBerry or iPhone with a bigger screen and keyboard, Qualcomm says.
Sereral manufacturers are planning to build smartbooks using Qualcomm's Snapdragon chips. The company has announced deals to sell the chip to at least 15 major device manufacturers, including LG, Acer, Samsung and Asustek.
Qualcomm won't say how many of those manufacturers will make smartbooks, but has said some Snapdragon devices appearing this year would have 10-to 12-inch screens.
The company expects carriers to offer smartbooks this year in addition to netbooks, chip division spokesman Luis Pineda said.
“We're happy that Verizon is selling a notebook with 3G connectivity,” Pineda said. “We're excited that the carriers are looking at selling smartbooks. We're waiting for that first device
by the union-tribune
Today, the term is on its way to becoming a household word as the category of small, lightweight, inexpensive computers has grown from nearly nonexistent to become the hot industry segment.
They don't have the power of full-blooded laptops, but they offer the convenience of extreme portability and the ability to connect to the Internet through Wi-Fi and in some cases cell phones' high-speed data networks.
These attributes make netbooks a growth area in an otherwise down computer market.
With small screens – typically around 8 to 10 inches – netbooks fall in the gray area between smart phones and laptop computers. With two cell phone companies beginning to sell the diminutive computers, the lines are being blurred further.
Using the same strategy as they have for selling phones, Verizon and AT&T have begun selling netbooks at a subsidized, lower price in exchange for a two-year commitment to a data plan.
Although buying a computer at a phone store is a new idea, it's expected to catch on. Speaking to wireless industry executives earlier this year, Microsoft's president of entertainment devices, Robbie Bach, said that by 2012, a third of all netbooks will be sold by wireless phone companies.
The streamlined portable computers are shaking up more than the traditional model of computer retailing. The shift to netbooks is rocking computer manufacturing, as well. Sales of netbooks are forecast to double this year, even as overall PC purchases fall 12 percent, according to the research firm Gartner. By the end of 2009, netbooks could account for close to 10 percent of the PC market, an astonishing rise in a short span.
Low-cost netbooks also generate lower profits for manufacturers. While netbook sales continue to grow, there is concern that the growth comes at the expense of more lucrative laptop sales.
“A broad shift in the consumer market toward low-cost PCs would clearly put pressure on the revenues of nearly every player in the value chain,” according to a Sanford C. Bernstein & Co. research report this year.
In the United States, AT&T started the trend of selling netbooks in April with test marketing in some of its retail outlets. The ultra-portable computers feature modems that link to the company's high-speed, 3G data network. The company said last week that based on customer acceptance, it planned to offer netbooks from Acer, Dell and Lenovo online and in its stores by this summer.
Details such as price and technical specifications remain to be announced, though in the test marketing, the AT&T netbook sold for $50 with a two-year contract.
While AT&T tested the waters, Verizon plunged in. A week ago, the company rolled out a netbook from Hewlett-Packard for $200, discounted significantly from the $520 price of a comparable HP netbook from traditional retailers.
Verizon's required data plans cost $40 or $60 a month.
Verizon's netbook includes Wi-Fi and the ability to log on to 3G data networks worldwide. Early reviews have pointed out that the total cost over two years could be high depending on how heavily an owner uses the Verizon data network.
Some industry analysts expect that at least one U.S. cell phone company will begin offering free netbooks this year.
There is no precise, common definition of a netbook. They are generally described as lightweight, averaging around 2 or 3 pounds, with built-in ability to link wirelessly to the Internet. Netbooks typically contain slower processors than laptops, which reduces the drain on batteries and lowers their cost. The less powerful processors make netbooks ill-suited for heavy lifting such as editing photos.
Netbooks are designed to run online software more than installed programs. This means much of the processing will be handled by the Internet servers, so they don't have as much need for a robust processor. They typically don't have CD or DVD drives, which helps reduce weight.
Some run Linux operating systems, others run Windows XP, and a few run Windows Vista.
Netbooks, by some definitions, typically run on chips made by Intel or AMD. San Diego-based Qualcomm is pushing a similar category of portable devices that run on top-of-the-line cell phone chips. That makes the Qualcomm-based devices more like scaled-up smart phones, while netbooks based on Intel's chips are similar to scaled-down laptops.
To distinguish from the laptop-related netbooks, Qualcomm uses the name “smartbook.” The devices will feature “always on” and “always online” networking, similar to a BlackBerry or iPhone with a bigger screen and keyboard, Qualcomm says.
Sereral manufacturers are planning to build smartbooks using Qualcomm's Snapdragon chips. The company has announced deals to sell the chip to at least 15 major device manufacturers, including LG, Acer, Samsung and Asustek.
Qualcomm won't say how many of those manufacturers will make smartbooks, but has said some Snapdragon devices appearing this year would have 10-to 12-inch screens.
The company expects carriers to offer smartbooks this year in addition to netbooks, chip division spokesman Luis Pineda said.
“We're happy that Verizon is selling a notebook with 3G connectivity,” Pineda said. “We're excited that the carriers are looking at selling smartbooks. We're waiting for that first device
by the union-tribune
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