It made a splash with the Eee PC. Now Asus, once known chiefly as a components maker, is looking to make the leap to consumer gadget maker.
One of the largest manufacturers of motherboards for two decades, albeit it a largely unsung one, the Taiwanese company finds itself smack in the middle of a transition from components maker to serious contender in PCs and accessories. Asus (pronounced "ah-soos") is attempting to establish itself as a brand name worldwide while making new forays into software and design.
The original Eee PC, launched in 2007.
(Credit: Erica Ogg/CNET)In addition to creating a new line of consumer products like TVs, VoIP phones, e-readers, and streaming Web video gadgets, the company's leadership has its sights squarely set on being the third-largest notebook manufacturer in the world by 2012, while remaining the world's largest supplier of motherboards. While it sounds somewhat ambitious for a company known more for nuts and bolts, there's precedent: Fellow Taiwanese company Acer was in a very similar position a few years back and was able to transition from microchip maker to one of the largest laptop producers in the world.
Could Asus could be another Acer in the making?
Repeating Acer's success is, no doubt, difficult. But the two companies have a lot in common: Both started as components makers in Taiwan, and made the leap into making PCs and smartphones (Acer acquiring E-Ten, Asus partnering with Garmin). Asus' very existence was also made possible by its rival--it was founded by former Acer engineers.
In terms of market share, Asus is about where Acer was in 2004. Back then, Acer had a tiny, 3.6 percent share of the worldwide PC market, according to data from IDC. Today, Asus is in a remarkably similar place, with just 3.63 percent share. Meanwhile, the surging Acer has tripled its hold on PC buyers from where it was five years ago to more than 10 percent, right behind perennial leader Hewlett-Packard, and Dell.
Acer, of course, is one of the PC industry's most recent success stories, quietly blossoming from computer parts maker to established player in the PC world. It put the rest of the industry on notice when it scooped up Gateway in a $710 million deal, which included the E-Machines brand, and later acquired Packard Bell. It's a collection of lower-tier brands, but one that's been able to sell a lot of machines.
Acer's best-selling Netbook, the Acer Aspire One.
(Credit: Acer)Asus, in building its Eee family of computers and gadgets and Asus-branded laptops, is relying on its team of Chairman Jonney Shih and CEO Jerry Shen to transform the perception of the company into a recognizable brand. Shih, who came over from Acer (along with Asus' original founders in 1989) is the ideas guy, and Shen puts them into action. It was Shih's idea for the Eee PC and the upcoming Eee Keyboard, and Shen is responsible for making sure the company's vast design and engineering teams make it happen.
But while Asus has some things going for it at that same point in their history that Acer did not--a recognizable product in the Eee PC--it's also facing very different challenges.
Acer was able to ride the huge growth in notebook PCs in the middle part of this decade. Eventually, it was able to buy its way into brand recognition in the U.S. with Gateway and in Europe with Packard Bell. Acer also timed the Netbook craze perfectly with its Aspire One, and was one of the first Netbook makers to strike deals with mobile carriers to offer 3G service on subsidized Netbooks.
Netbooks now make up one fifth of the PC market and are still chugging along--unit sales are expected to double from 16 million last year to 33 million by the end of 2009--but there's less room for dominating the market now because there are so many brands in the space, including much more recognizable names. Asus, for its part, is not intimidated. "We're used to it," Shih said recently in an interview. "Starting from the motherboard industry, competition is very normal."
Instead, it continues to churn out new versions of its Eee PC Netbook, with larger screens, better design touches, and slightly different form factors, like the convertible touch-screen version that debuted at CES this year.
More focus on aesthetics
But what Asus really has going for it are the leeway to be creative and the ability to come up with genuinely interesting ideas. Apple, they are not, but the company culture is now focused on making better-looking products.
"We're moving from our original culture of fundamentals and results, and we're now focused on innovation and aesthetics," said Shih.
It showed that with the Eee PC and graphics cards that are designed to resemble a Formula One race car. And now it's thinking beyond the personal computer with plans for a line of e-readers, televisions, and a streaming video device. Sound familiar? Acer also ventured outside of laptops when it bought smartphone maker E-Ten last year, in an admittedly less ambitious plan to diversify.
The upcoming Eee Keyboard.
(Credit: Asus)The Eee Keyboard also shows something which Taiwanese component companies aren't normally known for--ingenuity. The Eee Keyboard looks like a standard desktop keyboard but it has a computer inside, as well as a small 5-inch touch screen where the number pad should be. Using a wireless high-definition signal, it allows anything on the computer, like a Web page, or a video site like Hulu or YouTube to be viewed on a larger TV or monitor via a small adapter. You can also multitask while watching video and check Twitter, Facebook, or e-mail in the smaller touch screen in the keyboard.
It's a computer masquerading as a home appliance, an area we'll see Asus operate in even more. Since the initial success of the Eee PC, Asus has introduced a number of Eee-branded products, including the Eee Monitor, the Eee Box, Eee VoIP phone, and soon the Eee Keyboard and even the Eee Reader.
"We had to grow and diversify. But we didn't want to do things that are too far apart. We have to do technology that is related: communications, video, audio," Shih said. "The whole world is changing because of the Internet. Everything digital is converged. We have to take our vision for the whole Eee family there."
Nvidia said Monday that Intel and a bevy of circuit board makers have licensed Nvidia graphics technology for future Intel chips.
Nvidia SLI graphics boards
(Credit: Nvidia)The leading graphics chip supplier for game PCs has licensed its Scalable Link Interface (SLI) technology to Intel and makers of PC motherboards, including Asus, Gigabyte, and MSI for future Intel chips. SLI is a technology for linking two or more graphics boards and used typically in high-end gaming boxes.
The licensing deal will allow Intel and others to offer SLI technology in "P55" motherboards that are used with Intel Core i7 and i5 processors. The latter series of processors have yet to ship. A motherboard is the main circuit board in a PC.
Nvidia said this is significant because Intel is licensing the technology before it rolls out new chips, a departure from how SLI licensing was worked out earlier this year between the two companies.
"What's exciting is that Intel signed on before the launch (of new chips). Before, they came on after the launch," said Nvidia spokesman Bryan Del Rizzo. "This makes it easier for system builders and OEMs (PC makers)," he said.
The previous agreement that Del Rizzo mentioned was announced in February for a prior generation of Intel motherboards.
"Nvidia SLI technology is a perfect complement to the processing prowess of our new Core i7 and Intel DP55KG desktop board," said Clem Russo, VP and General Manager of Intel Client Board Division at Intel Corporation, in a statement. "This combination will surely be attractive to anyone building or purchasing a brand new PC this fall," he said.
In addition to Intel Core i7 and Core i5 processors, Nvidia's SLI technology is also available for Advanced Micro Devices' Phenom II processor.
Monday's licensing agreement is not related to an ongoing dispute between Intel and Nvidia over chipset licensing, Del Rizzo said.
Updated at 1:45 p.m. PDT with additional comments about Moblin market share.
On Tuesday, Intel released information on its next-generation Atom silicon and the next version of its Linux operating system for Netbooks.
Noury Al-Khaledy, general manager of Nettop and Netbook Computing at Intel, announced a technology platform called "Pine Trail" that--at the risk of confounding readers with similar product names--uses a new Atom processor dubbed "Pineview."
Intel announced the Moblin v2.0 Beta Tuesday
(Credit: Intel)Essentially, what all of this means is that Intel will move more features onto the "Pineview" Atom processor that are currently in the surrounding chipset. The graphics function and so-called memory controller--which connects memory with other parts of the system--will now be on the same piece of silicon as the processor.
Other functionality--the so-called I/O hub--will remain on a separate chip.
"We have a processor, we have a chipset, and we have an I/O hub. What we've done is reduce that three-chip partition to a two-chip partition," Al-Khaledy said.
The new Atom technology will launch in the second half of this year, Al-Khaledy said.
The goal of integration is to reduce power consumption and increase performance in Netbooks--which are small, inexpensive laptops designed for Web browsing, email, and less-demanding media applications.
Intel also announced the Beta version of the Moblin version 2.0 Linux operating system, which is targeted at Atom processor-based Netbooks, handhelds, Nettops (Atom-based desktops), as well as other markets such as automotive. "We're doing Moblin to unify Linux across all these segments," said Doug Fisher, general manager at Intel's software and services group.
Moblin 2.0 includes a new interface called the M-zone, which replaces the desktop and is "the entry point to the Netbook and Nettop," according to an Intel statement. This new interface is aimed at improving social networking and media--audio and video--consumption.
Intel did not disclose what PC makers may use the operating system--which will compete with Windows 7--but said Acer and Asus have used Linux in the past for Netbooks.
"We're seeing 20, 25 percent Mobilin share in Netbooks and Nettops," Al-Khaledy said. Much of the Netbook market today uses Windows XP and is expected to adopt Windows 7 when it comes out later this year.
Moblin 2.0 Beta is available for immediate download here.
Select processors from Advanced Micro Devices do not support Windows 7 "XP mode" though, like Intel, the vast majority of shipping processors do support XP mode.
Microsoft describes XP mode on its Web site as follows: "As part of the upcoming Windows 7 Release Candidate milestone, Microsoft will release a beta version of Windows XP Mode, which allows users of Windows 7 Professional and above to launch many older Windows XP productivity applications directly from their Windows 7 desktop. The Windows XP Mode stand-alone feature is specifically designed to help small businesses that are using Windows XP applications move to Windows 7. For larger businesses, Microsoft Enterprise Desktop Virtualization (MED-V) MED-V 2.0 builds on top of Windows Virtual PC and provides centralized management of Windows XP Mode. MED-V 2.0 will be available in beta within 90 days of general availability of Windows 7."
"All CPUs AMD is currently shipping, except Sempron, include AMD-V and therefore support XP mode," an AMD spokeswoman said Wednesday.
AMD also cited processors that are not necessarily shipping currently. "With the exceptions of Sempron-branded processors and Turion K8 Rev E processors, all notebook processors shipped by AMD include AMD-V and therefore support Windows 7 XP mode," AMD said. "With the exceptions of Sempron-branded processors and pre-Rev F Athlon branded processors, all of the desktop processors shipped by AMD include AMD-V and therefore support Windows 7 in XP mode."
And Opteron processors: "Also, all AMD Opteron processors shipped by AMD from Rev F forward include AMD-V," according to AMD.
A quick search on Best Buy's Web site turned up very-low-end systems that use the Sempron processor. For example, a $329.99 Acer desktop is currently being sold with a Sempron processor. And on Hewlett-Packard's Web site, an HP Compaq dx2450 Microtower (starting at $329), for example, can be configured with a number of different Sempron processors.
Dell has sold laptops, such as the Latitude D531, with AMD Mobile Sempron processors.
An earlier Nanotech: The Circuits Blog post cited Intel processors that do not support XP mode. Intel spokesman Nick Knupffer asserts this won't be a big issue. "Having VT (Virtualization Technology) on these consumer laptops is not going to be an issue--because the consumer versions of Windows 7 (Starter, Home Basic, and Home Premium) do not include Windows XP Mode," he writes.
SANTA CLARA, Calif.--The popularity of the Netbook caught Intel by surprise--more than once.
The initial demand for Netbooks caught Intel--and almost everyone--by surprise.
(Credit: Asus)Shipments of this category of inexpensive, ultra-light, handy laptops--almost all powered by Intel's Atom processor--are set to hit at least 20 million units this year, about twice the number shipped in 2008, according to IDC. But if an analyst had suggested these numbers to Intel in March of 2008, executives would have dismissed the forecast out of hand--or laughed.
This failure, by many in the industry, to grasp the significance of the Netbook, forced Intel into perpetual catch-up mode at the beginning. "I'm the one who had to explain to our factory--I'm really, really sorry I miscalled the demand," said Noury Al-Khaledy, general manager of Nettop and Netbook Computing at Intel in an interview last week. "And the next month, I didn't quite get it right either," he said.
"I think we under-called how easily people would comprehend how useful the device was," he added. For the record, Asus launched the phenomenon with the Eee PC in late 2007, followed in 2008 by Hewlett-Packard, Acer, and Dell, among others.
Al-Khaledy continued. "I think there was sort of this pent-up desire for an affordable, portable, Internet-access light editing sort of device and many of our customers--with our help--nailed it. They helped us so much."
One of the distinct advantages that Intel Atom-based Netbooks have over other similar devices--such as those based on ARM processors--is Windows. ARM-based devices today don't run Windows XP or Vista--and won't run Windows 7. Intel-based Netbooks can run all of these operating systems and versions of Windows 7 may run as well, or better, than XP on Netbooks.
"People bash (Microsoft) all the time. But then what do you really want to buy?" Al-Khaledy asked. "People really do want Windows...the XP attach rate was really, really good." Though Al-Khaledy praised Asus' initial Eee PC and its Linux operating system, some consumers were disappointed when they found out that it wasn't Windows.
"The Linux thing wasn't clear to people. If you think you're getting Windows and then you get home and it isn't (that's a problem)," he said.
And what impact will Windows 7 have on the Netbook market? Pricing will be critical. Unless Windows 7 is priced aggressively, Al-Khaledy doesn't see it as a catalyst necessarily for a spike in Netbook sales. "I don't see it as a big tipping point. It's all about pricing. If you have to pay $30 more for Windows 7, it might make (consumers) pause. There's just not a lot of margin in the box," he said. "(But) if Microsoft prices Starter and Basic aggressively, why wouldn't you?"
... Read more
Updated on May 6 at 6:35 p.m. PDT with additional comments from Intel.
A small brouhaha is erupting over Windows 7 and Intel processors. The hubbub is centered on which Intel processors will not support "XP mode" in Windows 7 and, by extension, which PCs will not support XP mode. Retail laptops may be one of the most prominent segments affected.
Sony Vaio laptops sold at retail stores are among a number of models from a variety of PC makers that have processors that don't support Windows 7 XP mode
(Credit: Best Buy)What is XP Mode? Here's how Ina Fried of CNET News describes it: "XP mode consists of two things, the Windows Virtual PC engine and a licensed copy of Windows XP Service Pack 3 as a packaged virtual machine. Although neither piece will be included in the Windows 7 box, XP Mode will be a free download for those who have a license to Windows 7 Professional, Windows 7 Enterprise, or Windows 7 Ultimate."
XP Mode (XPM) is aimed at businesses that have Windows XP-specific applications that they need to run on Windows 7. XPM allows XP applications to run seamlessly on Windows 7, according to Microsoft. The catch: Intel processors must have Virtualization Technology, or "Intel VT," in order to run XPM. (I won't cover Advanced Micro Devices processors here but will address AMD in a later post.)
Ed Bott's Microsoft Report says that "some of the most popular PCs on the market today...won't be able to use the vaunted Windows XP mode in Windows 7."
Bott lists Intel desktop and mobile processors that will and will not support XP Mode here and here, respectively.
Intel mobile processors may be the most problematic in supporting XP mode; not because of the raw numbers--most newer Intel mobile processors do, in fact, support Intel Virtualization Technology--but because a disproportionate number of those that do not have VT (and therefore don't support XP mode) are laptops sold at retail. (And, undoubtedly, some small businesses purchase laptops at retail.)
In the Core 2 mobile camp, the P7350/7450, the T5200/5250/5270/5300/5450/5470 series, and the T6400/6570 do not support VT, according to Bott's blog. And this can be confirmed on Intel's Web site.
A quick glance at Best Buy shows a somewhat lengthy list of laptop SKUs (models) with, for instance, the T6400 (non-VT) processor. The list includes Dell Studio, Toshiba Satellite, HP Pavilion, Sony Vaio, Asus, and Gateway laptops.
In the $600 to $899 laptop range, I found about 30 different SKUs with T6400 processors, though it should be noted that some of these SKUs are simply models with slightly different configurations.
And a quick search on CNET Shopper turns up a number of consumer models with the T5270. The point? To state the obvious, consumers will have to verify which processor their laptop has.
In an Intel blog, Nick Knupffer asserts this won't be a big issue. "Having VT on these consumer laptops is not going to be an issue--because the consumer versions of Windows 7 (Starter, Home Basic, and Home Premium) do not include Windows XP Mode," he writes.
And Intel, in a statement, had this to say. "Intel introduced its Virtualization Technology in 2005 and has shipped over 100 Million chips with the feature. Windows XP Mode is targeted for business customers. It is available on the mid to higher end versions of Windows 7 and is supported in hardware by many Intel processors."
Intel continued: "Intel vPro technology PCs are required to have an Intel VT capable CPU and Intel VT capable BIOS. They are the best platforms for testing and deploying Microsoft Windows Virtual PC and Windows XP Mode."
Note: This article has been corrected to reflect that the Dell Studio One 19 cannot be configured with an Atom processor.
Just a year ago, this category didn't exist. But after several Atom-powered all-in-one PCs debuted at CES in January, it's officially the hottest grouping of desktops on the market.
A category long dominated by Apple's $1,200 iMac is suddenly rife with nice-looking imitators that pack less power than traditional Windows desktops, but are also gentler on the wallet. They're a subcategory of desktop PCs called Nettops, and, like Netbooks, they're generally defined as a computing platform powered by the Atom processor that runs either Windows XP or a version of Linux. Combined with the all-in-one form factor and a smaller screen than most desktops (between 15 inches and 19 inches), they're essentially the Netbooks of the desktop category.
"A year ago I would have said Netbooks are not going to cannibalize the notebook market. Then the economy went kablooey," said John Jacobs, director of notebook market research for DisplaySearch. Since then, many people who needed a notebook have chosen to spend $400 on a Netbook instead of the typical $800 on a full-size notebook.
"I think we'll see something like that for Nettops," he said. "Either for retirees or younger folks who don't need the portability of a notebook, and just need something to get on the Internet and do basic computing. Nettops, and all-in-ones will be very attractive devices, and we expect to see a lot of retailers who have stayed out of it will jump into it."
The all-in-one category as a whole is expected to grow to more than 6 million units in 2009, and to over 7 million in 2010, according to DisplaySearch. That's almost an 80 percent spike in shipments, which was unexpected at the end of 2008.
Reinvigorating a tired category
In fact, the rise of all-in-one Nettops looks to be the most interesting thing to happen to desktop PCs in years. And, just as the economy helped bolster Netbooks' appeal, so too will it make Nettops more attractive to buyers, industry watchers believe.
Updated at 10:45 p.m. PDT throughout.
Intel celebrated the first anniversary of the Atom processor by introducing two new models, while confirming the arrival of Nehalem-based mobile processors later this year and disclosing a new chip dubbed "Jasper Forest."
The chipmaker also did a live demonstration for the first time of the next-generation Atom-based platform, code-named Moorestown. The platform will include a new Moblin software version that will enable a PC-like Internet experience along with cellular voice capabilities, Intel said.
Intel senior vice president Anand Chandrasekher did a live demonstration of the upcoming Moorestown Atom chip in Beijing
(Credit: Intel)Intel announced two new Atom processors for mobile Internet devices, or MIDs: the Z550 and Z515. The Z550 extends the performance of the Atom line to 2GHz. The Z515 incorporates the Intel Burst Performance Technology (Intel BPT), which enables the processor to run at 1.2GHz when performance is needed, Intel said.
Anand Chandrasekher, Intel senior vice president and general manager of the Ultra Mobility Group, in a keynote speech at the Intel Developer Forum in Beijing, discussed upcoming processors for laptops based on the Nehalem architecture that will be available in the second half of this year as part of the "Calpella" platform. These processors will be more powerful than their predecessors by including such technologies as Intel Hyper-Threading Technology and Intel Turbo Boost Technology.
Chandrasekher also touched on Intel's ultra low-voltage (ULV) processors and how they are creating a category of ultra-thin laptops less than 1-inch thick. Intel is slated to offer lower-priced versions of these processors by early summer that are expected to engender a class of low-cost ultra-thin laptops, which some have described as a MacBook Air for the masses.
Pat Gelsinger, Intel senior vice president and general manager of the Digital Enterprise Group, disclosed, for the first time, the Nehalem EP-based processor code-named Jasper Forest that is specifically designed for embedded and storage applications "to deliver optimal performance per watt...Jasper Forest will be offered in single-, dual- or quad-core designs; ranging from 23 watts to 85 watts," Intel said.
Samsung's NC20 Netbook shows that Via Technologies' Nano processor can keep up with the Joneses. But will Nvidia be given the chance?
CNET Reviews' Dan Ackerman reviewed the new Samsung NC20 Netbook and found it not wanting in a matchup with the Asus Eee PC 1000HE, packing Intel's latest and greatest Atom N280.
Samsung NC20 Netbook packs a Via Nano processor--not an Intel Atom.
(Credit: CNET Reviews)Though Nano is a necessary industry antidote to Intel's grip on the Netbook market, in the scheme of market share numbers, Via's chip is a blip at best.
I find it almost amusing when Intel lists Via as one of two competitors (Advanced Micro Devices being the other) in its Form 10-K filings. It's a fair analogy to say it's like a mom-and-pop coffee shop among a dense cluster of Starbucks stores. You may draw a few customers but 99 percent of the market is going to go to Starbucks.
Via helped pioneer the Netbook market in early 2008 by powering one of the earliest high-profile products, the Hewlett-Packard 2133 Mini-Note. In fact, Via was already supplying the inexpensive, low-power Via C7M--Nano's predecessor--in 2005 when the Atom concept was just a glimmer in Intel's eye.
The Netbook market vacuum didn't last long, however. Within months of Atom's arrival, the Via C7M was squashed by the Intel juggernaut, not to rise again. (Largely due to the fact that the C7M was slow, as one reader points out.)
The sober reality is that Via faces the same daunting challenge that Nvidia does: competing with Intel. The largest Netbook vendors--Asus and Acer--are wedded to Intel processors and chipsets, as are most of the other major players. An incremental increase in processor performance from Via won't necessarily tempt PC makers to drop Atom.
Nvidia's predicament is even more difficult because the GPU supplier can offer something that Intel can't: great graphics performance in a Netbook.
Nvidia faces a Catch 22. It needs a lot of Netbook design wins to make decent profit margins but customers won't sign up for Nvidia's Ion in the face of Intel's bundling incentives.
Alas, Nvidia's Ion seems destined only for tiny desktops for now. Nvidia has been shopping its Ion platform (Atom + Nvidia 9400M graphics) around and has had some success with top-tier PC companies looking to design diminutive desktops. But not any success to date in the Netbook space (although some smaller Asia-based Netbook makers are expected to announce Ion-based Netbooks at Computex in June).
Then there's Tegra. This Nvidia chip platform may have more success in the category of so-called "$99" Netbooks that are more akin--in the way they are offered to customers--to cell phones than laptops. These Netbooks, as depicted by Qualcomm, would be always-on and not part of the WinTel (Windows-Intel) ecosystem.
Nvidia went out of its way this week to demonstrate a concept device at CTIA in Las Vegas running Windows CE. Nvidia basically tore out the guts of an Intel-based HP Mini 1000 Netbook and replaced it with Tegra parts, according to a Nvidia spokesman Derek Perez, who attended CTIA this week.
Intel's Atom is proving to be a very popular chip. But is it too low-rent for Apple?
First the news. iSuppli reported Monday that Intel gained share, based on revenue, in the global microprocessor during every quarter of 2008 to finish up with 80.5 percent of the total processor market--a 1.6 percent gain over rivals--partly due to the success of its Atom chip in Netbooks.
Would a hypothetical Apple Netbook be a high-end product like Sony's Vaio P line?
(Credit: Sony)"Intel's low-priced Atom has become increasingly popular as the Netbook market has gained steam," Matthew Wilkins, principal analyst, compute platforms research, for iSuppli, said in a statement.
Worldwide unit shipments of Netbooks soared by more than 2,000 percent in 2008 and are expected to rise by about 68 percent in 2009, iSuppli said.
Not surprisingly, every major computer maker has announced a Netbook--some, like Toshiba, begrudgingly--and others, like Dell, seemed, at least initially, to put a product out there just in case.
Hewlett-Packard--one of the early leaders in the market--came out (back in April 2008) first with an upscale business-class "Mini-Note" Netbook, but since then HP has added a lower-cost consumer-focused HP Mini 1000 series too. All HP Netbooks now use the Atom processor after a brief flirtation with a Via processor (used because HP developed its Mini-Note before Atom was available).
Sony finally chimed in this year with the a luxury Netbook--the Vaio P series, which ranges in price from $900 to $1,499 with a 128GB solid-state drive and 2GB of memory--both atypical for an Atom-based system.
But not Apple. Now about a year after Intel rolled out the Atom brand. A Russian magazine has posted a pretty compelling mock-up of what an Apple Netbook could (should?) look like. The magazine even proffered some believable specs that were slightly off-kilter--a typical Apple product strategy: a 1.86GHz Atom Z540 (typically not used in Netbooks, most vendors default to the 1.6GHz N270), a 64GB solid-state drive (not unheard of in Netbooks but certainly not common), and, most interestingly, an Nvidia chipset and Nvidia graphics.
One of the challenges Apple faces with a luxury Netbook configuration like this is that it comes uncomfortably close to its pricey MacBook Air, which also offers Nvidia graphics and solid-state drives. This, of course, could change if Apple updates the Air with a more upscale configuration.
Or Apple could bring out an un-Netbook (Apple, of course, will dare not speak the name "Netbook") like Sony but trump Sony by using an inexpensive Intel Core 2 ultra-low-voltage (ULV) processor (due by early summer) that keeps it up-market but far enough below MBA territory.
That said, if Apple goes the Atom-based Netbook route, it will not be immune from the inevitable cannibalization that Atom brings with it.
Some potential MacBook Air buyers would look at a 10- or 11-inch Apple Netbook and say why pay the $1,000 premium? Maybe too many for Apple's taste. We'll see.
