January 19, 2009 11:05 AM PST

The new class of affordable, portable notebooks

by Gordon Haff
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I've been following the goings on at the low end of the notebook market with considerable interest over the past year. Part of my reason is professional; the way that the most mobile client devices evolve says a lot about how we will access applications and what the infrastructure running those applications will look like.

I'm also interested on a personal level. On the one hand I travel quite a bit. On the other, when I'm not traveling, I generally work out of my home office where I have a hefty desktop rig with three monitors. As a result, I value portability far more than power in my notebook given that I mostly use it for relatively lightweight Web browsing and writing while I'm on the road.

Netbooks (to use Intel's term for ultraportable PCs) have become something of a phenomenon. This hasn't been so much because they've broken new ground in notebook features. In fact, the systems that generally get lumped in that bucket today tend to skirt the edge of the full PC experience. They're explicitly intended to access Web-based applications through a browser or to run some basic productivity software locally; they're not general purpose. And they use less power-hungry, but less powerful, processors such as Intel's Atom. They're inexpensive--under $500 in most cases--especially compared to traditional road warrior notebooks that have tended to be priced at a premium relative to the notebook mainstream.

So this trend toward smaller and cheaper is interesting for a lot of reasons. What it isn't, I've argued, is a clearly distinct class of system but rather, as I argued in November:

...a temporary phenomenon that will soften over time. Memory gets denser, processors get faster, LCDs get cheaper. Some of these Moore's Law-fueled advances could indeed continue to push the entry level of the notebook market down in price... But I strongly suspect that a lot of that technical advance will also go into beefing up the capabilities of notebooks in the sort of price band that a lot of consumer electronics sell for--say, sub-$500.

We're now seeing exactly that happen.

At the Consumer Electronics Show (CES), AMD announced its Athlon Neo ("Yukon") platform, which will first appear in the HP Pavilion Dv2. Dan Ackerman on CNET describes it as:

Pitched as a kind of step-up from Netbooks, Neo provides for a little more processing muscle--at least enough to power Windows Vista. The CPU is called the Neo MV-40, runs at 1.6GHz, and comes paired with ATI Mobility Radeon HD3410 graphics.

Besides that, the Dv2 also has a fairly large keyboard for a 12-inch laptop, starts at about 3.8 pounds, and is 1.3-inches thick at its thickest point. The display is a 1,280x800 LED.

Pricing will start at $699, which puts its entry level at or a bit above the high-end of Netbooks such as the Asus Eee PC. But, at the same time, this is perhaps half the price of the more fully-featured ultraportables pitched primarily toward mobile professionals. AMD's and HP's intent here is to drive the price down on portability while still providing enough screen real estate and processing horsepower to handle things like multimedia and browser with lots of tabs open smoothly. "Good enough for the real world" is how AMD Chief Marketing Officer Nigel Dessau put it to me (with the implication that lower-end Netbooks are not.)

Intel also plans to enter this segment of the notebook market with its consumer ultra-low voltage (CULV) platform later this year.

None of this should be taken to suggest that we won't continue to also see a class of smaller, cheaper notebooks that will continue to prioritize price and mobility over a larger screen and keyboard and better performance. But it's becoming clear that such systems aren't an isolated phenomenon, but rather part of a more generalized broadening of the notebook space that includes Netbooks, 17-inch gaming machines, and everything else in between.

Gordon Haff is a principal IT adviser at Illuminata and has more than 20 years of IT industry experience. He writes about what's happening with enterprise servers and data centers, "Yotta-scale" computing, and related software and device trends as part of the CNET Blog Network. Disclosure.
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by websterphreaky January 19, 2009 3:11 PM PST
Well you can be sure that Apple's name won't be any where ion this list.

Buy ANYTHING Apple and you pay the Greedy Excessive Profits "Mac Premium"
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by ckh1272 January 19, 2009 4:23 PM PST
by websterphreaky January 19, 2009 3:11 PM PST
Well you can be sure that Apple's name won't be any where ion this list.

Buy ANYTHING Apple and you pay the Greedy Excessive Profits "Mac Premium"

Wow, it must be hard work typing while standing on that soapbox!!
by expatincebu January 19, 2009 4:42 PM PST
Compare ANY Apple computer with ANY other manufacturers PC with comparable specs and you will find a negligible price difference. In fact, in many cases the Macs are slightly cheaper. Apple does not make cheap low end computers, that is true, but what they do make is no more expensive than comparable machines of the competition.

Your view is based on IGNORANCE and nothing more.
by gorgeclimber January 19, 2009 10:10 PM PST
As one who has bought many PCs and Apples over the past 28 years, I would agree that Apple products have always been, and still are, considerably more costly for devices with equivalent specifications. Apples were the first user-friendly computers. However, today I would say Microsoft systems (even Vista) have well surpassed Apple. Mac operating systems (OSs) are cheaper than Microsoft. However, Apple OSs, in comparison to Microsoft OSs, do not have as wide a variety of applications that are compatible. Mac OS X 10.5 does offer one advantage - you can have both Microsoft and Apple OSs on the same machine. A HUGE advantage for the PC is that they are easy, and less costly, to repair compared to most Apple devices.
by gggg sssss January 19, 2009 4:44 PM PST
You are kidding right? Dell has real 15 inch notebooks with real Dual Core CPU for 599. Why woudl you pay HP 699?
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by ghaff January 19, 2009 5:55 PM PST
Dell has some pretty impressive deals at the moment on Inspirons. As does HP with their mainstream notebooks; I was helping a friend price out options over the weekend. So the nominal $699 price may not be where street price ends up. However, the broader point is that the premium associated with being very portable has shrunk considerably.
by tm_anon January 19, 2009 4:55 PM PST
Unfortunately, Intel has capped the Atom processor, at least from what I've read on other CNET articles. The netbook could honestly replace the notebook if the processor were allowed to grow in abilities on par with other processors. The only problem for Intel is that they can't make as much money on them. I'd love to see another company come along and create more powerful processors with equally low power usage and at the same price point. It's definitely possible and would definitely make me consider a netbook for my next PC purchase. Capping abilities makes me look elsewhere, like the used market or building one myself.
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by ratman2.0 January 19, 2009 5:03 PM PST
**** lol..nobody ever said apple makes cheap low end computers, what they do make however is overpriced, no matter how good it looks. It'll be the end of the world before you find a similar spec'd apple computer that is cheaper than other computers.
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by tmblsn January 19, 2009 5:10 PM PST
I couldn't determine exactly what you were saying would "soften over time", but I believe that this market is here to stay.

The keys to this market are size, weight, battery life and price. I don't believe that anyone will shy away from better features including processor RAM and hard drive.

But, I want something under 3 pounds and about a 12" screen (I'd like smaller, but you need this size to get a decent keyboard).

If they can put a quad-core processor in there with 4GB+ of RAM and a 1TB solid-state drive and still get 5+ hours of battery life, great.

Personally, I'm looking forward to 10-15 years down the road when all of the processing, RAM and storage will be able to fit in my mobile phone and I just need to connect to it with bluetooth-like wireless for my user-interface components (keyboard, video and mouse).
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by ghaff January 19, 2009 5:59 PM PST
What I meant was that there isn't an obvious distinction between a unique Netbook-class of device and the rest of the notebook market.
by DRACO2032 January 19, 2009 7:12 PM PST
I think this ultra portable pc are great. Students specially can benefit from them, mostly us student have a desktop at home, and we take a laptop to school (no heavy backpacks) and now we will see this more often since laptos for basic computing are cheaper.
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by Myshkin57 January 19, 2009 8:43 PM PST
"Pricing will start at $699, which puts its entry level at or a bit above the high-end of Netbooks such as the Asus Eee PC."

Most of the Eee PCs are SIGNIFICANTLY less than $699. The only one even close is the S101, but that's not typical of the line at all.
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About The Pervasive Data Center

This blog takes a deep (and often skeptical) look at trends big and small in the world of enterprise servers, data centers, and "Yotta-scale" computing. This means also taking into account the myriad of software, networks, and devices that are driving change in (or being driven by) these back-end systems. Stories posted to this blog may also appear on Illuminata's site.

Gordon Haff is a principal IT adviser for Illuminata of Nashua, N.H. Before becoming an IT industry analyst, Gordon held a variety of product-marketing positions at Data General, spanning more than a decade. He's programmed for DOS, Windows, and Linux; builds his own PCs; and holds engineering degrees from MIT and Dartmouth, with an MBA from Cornell. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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