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October 14, 2009 8:02 AM PDT

Michael Dell dings Netbooks

by Don Reisinger
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Dell Mini

The Dell Mini apparently isn't Michael Dell's favorite product.

(Credit: CBS interactive)

Netbooks aren't for everyone, Dell CEO Michael Dell said Tuesday night at a dinner in Silicon Valley hosted by the Churchill Club.

Give a 10-inch Netbook to someone who's been using a 15-inch notebook, and the user will say, "'Hey, this is fantastic....It's so light,'" Dell said, according to The Register. "But about 36 hours later, they're saying 'The screen's gonna have to go. Give me my 15-inch screen back.'" (Editors' note: Dell also spoke at Oracle OpenWorld on Tuesday, about how his company is delivering a more efficient enterprise with its services. See the ZDNet video on right.)



(Credit: ZDNet)

The fact that Dell would take Netbooks to task in such a way should be a surprise, considering his company sells a line of 10-inch Netbooks. But Tuesday night in Santa Clara, Calif., Dell apparently didn't care. He wanted to make it clear that his company realizes the limits of Netbooks and that it offers options.

"We see a fair amount of customers not really being that satisfied with the smaller screen and the lower performance, unless it's like a secondary machine or it's (a) very first machine and the expectations are low," Dell said, according to The Register. "But as a replacement machine for an experienced user, it's not what we'd recommend. It's not a good experience, and we don't see users very happy with those."

Although Dell obviously has issues with Netbooks, it seems that many consumers don't. A recent study from DisplaySearch found that as notebook sales fell 14 percent in the second quarter year over year, Netbook sales rose a whopping 264 percent. The research company expects the trend to continue.

With that in mind, was Dell's founder doing the right thing by taking shots at Netbooks? His company does sell them, after all. And if Netbook sales are booming, shouldn't this simply be area where Dell can capitalize.

What do you think?

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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Add a Comment (Log in or register) Showing 1 of 2 pages (49 Comments)
by dgutf October 14, 2009 8:16 AM PDT
He is just being honest.
Reply to this comment
by jlt0x October 14, 2009 9:27 AM PDT
Agreed. He was using honesty and facts to explain why there are many unhappy Netbook owners. Many of the complaints are from consumers that shouldn't have purchased a Netbook to begin with. I don't know how many people I know has or had considered replacing their current desktop or laptop with one of these inexpensive Netbooks just b/c it was much cheaper than the system they bought a couple of years ago.

If you purchased a Netbook purely based on price, you're going to be disappointed. There's a reason why the 11.1-in Vaio and the 13.1-in Sony Vaio laptops starts at nearly $1300 & $1800, respectively. They have the computing power that most 15 or 17 in laptops possess. A $250-$350 Netbook wasn't made to handle many tasks including the OS, web browser, and some simple word processing duties. And they're small. It takes a great adjustment to go from your 20in desktop monitor to the 10in screens found on many Netbooks.

These small, simple machines (Netbooks) do what they're supposed to do.
by VoiceOfLogic October 14, 2009 9:33 AM PDT
I wouldnt purchase a Dell OR a Sony if you had a gun to my head. $1300 for a laptop? I'd buy and Apple for that money or TWO HP's or Acer's. [CNET editors' note: Offensive material deleted.]
by PropMelon October 14, 2009 9:49 AM PDT
@jlt0x

+1
by myles taylor October 14, 2009 10:16 AM PDT
I agree with him on this one. Most people buy netbooks because they think they are full-fledged computers that are smaller and lighter. They don't realize what they are missing out on. You forget that most consumers are idiots and make decisions based on nothing. The netbook fad is a bubble that I can't wait to burst.
by wigmo October 14, 2009 8:21 AM PDT
His dell mini 9 is a popular choice for a hackintosh netbook.
Reply to this comment
by dougjake October 14, 2009 8:22 AM PDT
Sounds like Mr. Dell is having trouble adjusting to a new reality that doesn't suit his taste.
Reply to this comment
by kkohnen October 14, 2009 8:23 AM PDT
Mike Dell's yet again out of touch with his customer base.

Hey Mike! Why is your customer service so incompetent?
Reply to this comment
by ittesi259 October 14, 2009 11:26 AM PDT
His personal opinion does not have to be that of his customer base.
by tcr071 October 16, 2009 3:23 PM PDT
Out of touch with the customer base? Have you seen the Dell netbook lineup? It's pretty impressive. He is just voicing his opinions and I think a lot of people agree with him, I know I do.
by easygimik October 14, 2009 8:24 AM PDT
I think most users aren't going to know about or care what Michael Dell says about netbooks. The average computer buyer seems blissfully ignorant of this kind of thing.

Plus, can you disagree with him?
Reply to this comment
by DirtRidr October 14, 2009 8:31 AM PDT
Hey Mike, Why do you want to charge me $50 to speak to tech support to get information that should have been in the motherboard manual that you should have given me when I purchased my Dell computer? And why do you insist on using non-standard components that require me to come back to Dell for replacement parts when I could get a standard part for far less? And finally, why should I ever buy a Dell computer again? Yea, that is what I thought too!
Reply to this comment
by bluemist9999 October 14, 2009 8:32 AM PDT
Netbooks aren't for everyone. Their low price, lightness and long battery life are huge pluses. However, their slow performance, smaller keyboards and small screens can make netbooks not worthwhile for some uses.

For casual note taking, browsing the web, listening to music, network diagnosis, looking at pictures, and playing simple Flash games, netbooks work very well. For any heavy-duty use though, or for multitasking, netbooks won't cut it.
Reply to this comment
by celticbrewer October 14, 2009 12:54 PM PDT
Exactly. So he's absolutely correct. He's just saying that anyone whose primary PC is a netbook probably won't be happy with the small screen and slow performance.

These things are for portable surfing- hardly anything more. Yeah, I'd like to have a netbook for those reasons, but I wouldn't give up my laptop or desktop for one.
by SactoGuy018 October 14, 2009 8:34 AM PDT
I think people are misinterpreting Mr. Dell's remarks. He's saying that for _serious_ computing work, a real notebook with a more powerful CPU, bigger screen, better-sized keyboard, more memory and more storage space makes sense. The netbook is designed primarily for Internet access and other light processing duties--an assessment I agree with.
Reply to this comment
by hexor October 14, 2009 9:01 AM PDT
He still dinged his own product. Not a great idea making headlines by trashing your own product.
by celticbrewer October 14, 2009 12:55 PM PDT
I disagree hexor. He's saying: don't buy my $400 machine as a primary. Buy a $700 laptop/desktop first, and then buy the $400 portable netbook.
by bbrooks29 October 14, 2009 8:34 AM PDT
I have a Dell mini 9 and I think it's great. It sounds like the profit margin on netbooks is smaller and he is trying to discourage them. A netbook is never supposed to be the only computer you own unless you are 11. They are perfect for living room internet or carrying with you to class. A netbook is not a replacement machine, it is a supplementary machine. We traveled extensively with ours and it was invaluable but I would be hesitant to lug a 15 inch laptop with optical drive and an HD with moving parts around Europe.
I hate feature creep. People that asked for the 10 inch screen and bigger HD ruin things just the way people who ask for extra features in sportscars ruin them. You end up with fatass power leather seats and an automatic transmission as the car devolves. You cannot please everyone and shouldn't try. If you are sitting there with your netbook and wishing you had a 15 inch screen then why did you buy a netbook? Put some thought into what you want first before you buy. The customer is not always right sometimes the customer is a pinhead.
Reply to this comment
by SactoGuy018 October 14, 2009 8:41 AM PDT
Actually, I want a netbook with at least a 250 GB hard drive and 4 GB of RAM. That will allow the _full_ edition of Windows 7 Home Premium to be run on the netbook. I think it will happen once netbooks with the Intel Atom N450 CPU and the "Pine Trail" chipset starts shipping early in 2010.
by awbomber October 14, 2009 9:18 AM PDT
The Acer Aspire 1410 and newly introduced Timeline 1810T both have a 250GB or 320GB drive and come with up to 4 GB of RAM. I don't call this feature creep, I call it the evolution of netbooks into a product worth purchasing. It still supplements my desktop replacement. I agree with you there. But asking for more out of PC makers is reasonable and breeds innovation, not crappy computers.
by Stormspace October 14, 2009 8:39 AM PDT
Netbooks with XP are still faster than marginal machines(notebooks) running Vista under the Vista capable program. He's just upset with them for killing his profit margins.
Reply to this comment
by kaibelf October 14, 2009 8:41 AM PDT
I love how people compare sales rates. Let's break it down:

264% increase for netbooks, which means instead of selling a pittance, they are selling 2.5 pittances.

14% decrease in notebooks, because they are more expensive, and right now, everyone will buy the cheapest option. This isn't some revelation. People are cheap, and money's tight. It doesn't mean that netbooks are suddenly amazing, powerful, or even convenient.
Reply to this comment
by Toulinwoek October 14, 2009 9:19 AM PDT
You've never done any study at all in the areas of trending or statistical analysis, have you? I thought not.
by Get_Bent October 14, 2009 9:47 AM PDT
I agree with kaibelf. The statistics sound impressive at first glance. However, when you apply them to the actual data, the stats turn out to be irrelevant in real terms.

If you have one grain of sand and add three more grains, you have a 300% increase in sand. However, it still amounts to just 4 grains of sand....
by MEPace October 14, 2009 10:02 AM PDT
kaibelf hit the nail on the head. Liars figure and figures lie.
by Toulinwoek October 14, 2009 11:46 AM PDT
True, but the stats aren't talking about amounts, but about trends.

If Joe has 1 grain of sand and he increases it by 300 %, he has four. That's positive growth
If Bob has 10 grains of sand and he loses 20 %, he now has eight. That's negative growth.

Sure, Bob still has twice the AMOUNT that Joe has, but if you extrapolate, the indications are that Joe has more reason to celebrate than Bob. The article isn't trying to suggest that there are more netbooks in consumer hands than laptops, but that the market for one is growing while the market for the other is shrinking.

The bottom line is, if it's YOUR money, which wouold you invest in? A tiny company with 264% year-over-year growth, or a big company losing 14% year-over-year?
by Get_Bent October 15, 2009 10:35 AM PDT
Assuming that the current trends continue in those directions in the future, which is definitely NOT a given.
by jhlundin October 14, 2009 8:49 AM PDT
...two thoughts: first, marketeers and product professionals would suggest that there is *no product* that is right for everybody. You need to make informed choices. Although I have used a netbook, and liked its form-factor, my choice of devices finds the netbook in the middle because I prefer doing 90% of the netbook function on my smartphone, and the other 10% on a full sized notebook (with the power that I need for some of my apps)...

And second, netbooks are assuredly either loss leaders or, at best, break even propositions (look at the features and all netbooks are just about the same). It is a highly competitive market, and Michael is suggesting that some customers might be happier moving up to a more profitable, and more powerful, laptop... that would be "up-selling."

Michael is right in line for someone who is fitting the form and functionality to the needs of the customer... and the company. JHLundin
Reply to this comment
by jscott418 October 14, 2009 8:58 AM PDT
I agree with Mr. Dell that the NetBooks are way over sold on price. People are cheap and many just see the price tag. What is funny is I have seen several 15" Notebooks selling for under $400 that are much better then most Netbooks. I have a 10" Netbook for travel but could not imagine sitting for hours staring at a little screen. Not to mention the other nagging issues like frequent scrolling, choppy video, no optical drive and limited ports. Frankly I see to uses for them. That is travel and a starter for kids.
Reply to this comment
by darkebinary October 14, 2009 9:02 AM PDT
We piloted some netbooks at my company with some field survey technicians and Dell pretty much hit the nail on head. They thought they were cool the first few days, but were soon complaining about screen size and processing power. They use Adobe Acrobat to look at PDFs of CAD floorplans and not only did Adobe lag, but they had to either zoom out real far or scroll alot more than they are used to. Maybe if you just using word and email they might fit your needs, but I can see how the screen size could be an issue even for someone who uses large spreadsheets.
Reply to this comment
by Renegade Knight November 12, 2009 8:16 AM PST
I've used 12" - 17" and have found 12" ok for some tasks. 14 for more. 15 strike a nice balance but not if you have to lug it around. 13" is the smallest I couls stand to use and would rather go bigger. 17" is great, as long as it's movment is within your own house and only occasionally.

Netbooks don't even rate. Too small on all fronts. Underpowered is it's own problem and not specific to size.
by dragonbite October 14, 2009 9:12 AM PDT
He's right, it isn't good for a complete system replacement for experienced users.

Yet, most experienced users already have a "primary" system so the Netbook offers a portable means to access it, or it is good for newcomers or for people that genuinely want a small, light, long-battery life machine.

That's part of what holds me off from getting one, plus my 12" Dell D400, though not light, is adequate for most of my needs for portability.
Reply to this comment
by Renderman2009 October 14, 2009 9:15 AM PDT
I use a netbook, and yes I have OSX installed. Without it, my netbook is just a generic mini-me PC.

Since Apple don't want to give us a netbook, don't blame us hackintosher for doing this. The atom chip is not a fast cpu but it's got SSE3 and hyperthreading - which makes it perfect for OSX.

OSX on a netbook makes perfect sense - it's great for browsing photos with coverflow, reading e-books with built-in pdf reader, listening to music and watching movies. It's so small I carry it everywhere and coupled with my 3G, I can surf the net and write emails anywhere. Much better than using iphones, it runs real Mac apps not applets.

No one in the right mind will use a netbook for doing serious work - the screen is too small and processor too slow for photoshop, 3d apps or video encoding. I have a better machine for that.
Reply to this comment
by Lenman_99 October 14, 2009 9:16 AM PDT
The thing is that most user don't use their systems for anything that the netbook can't handle. I love my netbook. Show me a notebook that will fit in my golf bag and I can use on the golf course. It also fits nicely in my glove box. I am a remote system admin and it works for all my work needs. The screen works fine if you get used to using the zoom function. I play all my games on a PS3 so I don't need a system for games. If I need to do any video editing I use my old AMD desktop that I reloaded so it would run clean for all the heavy work. They don't do everything well but they do 95% of what most people need in a computer.
Reply to this comment
by Renegade Knight November 12, 2009 8:17 AM PST
The thing is, you actually understand the limitations and uses.
by frankz00 October 14, 2009 9:26 AM PDT
I agree with Dell! Netbooks are crap! The keyboards alone make them a loser!
Reply to this comment
by VoiceOfLogic October 14, 2009 9:31 AM PDT
Dell is a 100% FAIL. Just remember that. His company sucks, his computers suck, his customer service sucks. I dont know why you'd even give that buffoon the time of day. Move along, Acer - HP - much better stuff. I give Dell 2 years before it folds completely.
Reply to this comment
by planblove October 14, 2009 9:32 AM PDT
I like his honesty. Its really just a case of different stroke for different folks. Me personally will never own a netbook, I like my HP 17 inch widescreen laptop with 4gb of RAM. But my wife, who only checks emails and shops online, loves her netbook to DEATH. Its not for me but I would never knock their appeal to other users.
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Showing 1 of 2 pages (49 Comments)
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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