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Hewlett-Packard on Tuesday announced its first Netbook with an 11.6-inch screen and Nvidia's Ion chipset as well as two inexpensive "ultrathin" laptops.

HP Mini 311 Netbook uses an 11.6-inch screen and Nvidia Ion chipset

(Credit: Hewlett-Packard)

The Mini 311 is the first HP Netbook to use a large screen--11.6 inches exceeds the upper limit of 10 inches on standard Netbooks--and is the first to get high-octane Nvidia Ion graphics--the same graphics used in laptops such as the Apple MacBook Air.

The 11.6-inch diagonal LED display is available in high-definition 1366x768-pixel resolution. It includes HDMI and VGA video connectors.

Nvidia's Ion chipset is a graphics processing unit (GPU) that works together with the low-power Intel Atom processor to generate standard-laptop-like graphics performance.

"By processing data-intensive applications in parallel with the CPU, ION-based Netbooks offer many of the same capabilities of full-sized notebooks including support for all versions of Microsoft Windows," Nvidia said in a statement.

HP 'ultrathin' ProBook 5310m

(Credit: Hewlett-Packard)

Analysts believe that getting mainstream-laptop level of performance in a Netbook is important. "Our research shows that most people who buy a netbook expect it to behave like a full-sized notebook," according to a statement that Nvidia provided from Tim Bajarin, principal analyst at Creative Strategies. "With Ion-based Netbooks like this one from HP, consumers can expect a well-rounded experience and the ability to handle nearly all of their everyday computing needs," he said.

The Mini 311 will start at $399 in the U.S.

HP also introduced a couple of relatively inexpensive "ultrathins," the ProBook 5310m and Pavilion dm3. The ProBook 5310m is 0.9-inches thick, weighs in at 3.7 pounds, and sports a 13.3-inch diagonal LED high-definition display. It is offered with a Intel Core 2 Duo SP9300 (low-power) processor and combines durable, black anodized aluminum with a magnesium frame.

The HP Pavilion dm3--also classified as an ultrathin--comes in an all metal design, with up to 10 hours of battery life via the standard six-cell battery. The dm3 uses a 13.3-inch diagonal LED screen and offers AMD or Intel processors and a discrete graphics chip.

HP Envy 13 laptop is a higher-priced, higher-performance thin laptop

(Credit: Hewlett-Packard)

The HP ProBook 5310m starts at $699 with an Intel Celeron dual core and $899 with Intel Core 2 Duo. The notebook is expected to be available in North America, Europe, Africa and the Middle East, and the Asia-Pacific region on Oct. 22 with the Microsoft Windows 7 operating system.

The HP Pavilion dm3 starts at $549 with an AMD processor and $649 with an Intel processor and is expected to be available starting Oct. 22 with the Microsoft Windows 7 operating system.

The higher-priced and higher-performance sub-one-inch-thick "Envy 13" laptop bears some of the hallmarks of the MacBook Air, such as an aluminum body and a robust graphics chip. The Envy 13 will come with an Intel Core 2 Duo SL9400, ATI Radeon HD 4330 graphics, and a 1,366x768 display. It starts at $1,699.

Updated at 5:15 p.m. PDT: correcting for AMD dual-core Neo in HP dv2 laptop and adding Acer Aspire Timeline AS3810T discussion.

Advanced Micro Devices will debut its dual-core low-power Athlon chip technology on an updated laptop from Hewlett-Packard next week. This will be followed by "Congo" low-power silicon later this year.

HP will update its Pavilion dv2 laptop with a dual-core version of AMD's low-power Athlon processor

(Credit: Hewlett-Packard)

AMD is aiming its Neo technology at the ultra-thin laptop market. This is the same market that Intel has addressed for a long time with its ULV (ultra-low-voltage) chips. However, until very recently, laptops using Intel's ULV chips were expensive "executive jewelry," as Intel CEO Paul Otellini has described the segment. (Think: $2,000-and-up Sony Vaio TT or Toshiba Portege R600 laptops.)

That was then. Intel now targets its ULV silicon at inexpensive ultra-thin laptops. It's probably safe to say that AMD beat Intel to the punch (and got Intel's attention) when HP announced the 0.9-inch-thick, $700 dv2 laptop at CES in January, sporting the first Neo chip.

And the dv2 was more than a Netbook: it had a 12-inch screen, ran Windows Vista, packed ATI graphics, and came replete with a 320GB hard disk drive and 4GB of memory.

The updated HP Pavilion dv2 is expected to debut on June 10 with the dual-core Athlon Neo.

The dual-core Neo chip used in the updated HP dv2 (which is exclusive to HP) will be followed by AMD's Congo technology, due in the third quarter, which integrates AMD's HD3200 graphics, an improvement over the current "Yukon" platform. The all-important power envelope--that, after all, is what sets the technology apart from mainstream mobile silicon--of the whole package including the graphics is expected to be about the same as the first-generation Neo, according to AMD.

Other vendors will follow with low-power dual-core Congo chips later this year, according to AMD. The new silicon will be used in 24 designs across 11 different PC makers--though AMD says this list is expected to grow.

One of the challenges that AMD faces is benchmarks. This CNET review of the first HP dv2 laptop with the initial Neo chip said that though the "1.6 GHz Neo CPU MV-40 has enough processing power to run Windows Vista smoothly, something that has tripped up Intel-Atom-powered systems" when "running multiple apps simultaneously, none of these low-power, single-core CPUs were particularly impressive, and the Neo and Atom were essentially tied in our multitasking test. By way of comparison, a standard Intel Core 2 Duo ULV (ultra-low voltage) processor, as found in more expensive 12-inch laptops, easily beats them all."

Another challenge is power efficiency. Though a dual-core Neo chip should close some of the performance gap with Intel dual-core ULV chips, it remains to be seen what kind of battery life Neo delivers with two cores. AMD says the extra core only adds three watts over the current single-core 15-watt power envelope. The newest Intel-based ultra-thin laptops boast significantly better battery life than older Intel ULV laptops, with some models, such as the Acer Aspire Timeline AS3810T, delivering up to eight hours on one charge.

Intel marketing chief Sean Maloney

(Credit: Intel)

Unleashing innovation is key no matter what laptop category you're talking about--whether Netbooks or low-cost notebooks, said Intel's sales chief, ahead of this week's Computex trade show in Taipei.

I spoke briefly with Intel's marketing chief Sean Maloney--who is at Computex this week--on Monday night and asked him about how the wave of low-cost, thin notebooks based on his company's "ULV" (ultra-low-voltage) chips may affect Netbook sales.

New, aesthetically appealing, inexpensive notebooks, such as the $699 Acer Aspire Timeline, could make Netbooks less attractive, which pin a lot of their popularity on bargain-basement pricing.

Maloney said Intel is not going to fret over sacrificing one category of laptops because it needs to protect another.

"It's a loser mentality to not develop one segment because you're worried about the other," he said. "I think we have several years ahead of us where we can innovate the heck out of any of these categories without getting defensive about the other one. You just need to unleash innovation in all of the segments and see what happens."

And what about the new 3G-capable Netbooks--which Qualcomm had dubbed "smartbooks"--appearing at Computex from Asus and upstarts like Mobinnnova which are tied to the ARM processor and sold through telecommunications providers? "The more the merrier. The more innovation there will be. It's good for the industry to have competition," Maloney said.

New ULV notebook wave: Acer Aspire Timeline has a number of the same specifications and attributes of the upscale Dell Adamo but is priced more than $1,000 below the Adamo

(Credit: Acer)

Maloney continued. "We've shipped very large numbers of Netbooks through service providers in the last year and a half. Most of the service providers around the world have been shipping Netbooks for some time," he said. Hewlett-Packard, for instance, is now selling an Intel Atom-based Netbook at Verizon stores in the U.S. with 3G built in.

And, how important is the rollout of the new ULV chips? "This is a big announcement and it's kind of on par with the original announcements we made with the original Centrino," Maloney said.

"Fashion is going to play an ever-bigger role (in notebooks). It's like the cell phone industry four or five years ago. An incredible number of designs are coming out in the thin form factor."

"Very light, very thin, and incredibly long battery life," he said of the ULV laptops. Sounds a lot like the evolution of the Netbook--except it isn't called a Netbook. But, as Maloney said, may the best product category win.

Intel said Netbook cannibalization of notebook PC sales is about 20 percent in Europe, according to a news report Wednesday. But this trend may ebb later this year when the "affordable" ultra-thin laptop category takes off, leading to a cannibalization reversal of sorts.

Christian Morales, Intel's European sales chief, said Netbook sales were about 16 percent of all notebook sales globally, and a little higher in Western Europe, according to Reuters. "In Britain and Italy they may account for as much as a quarter of all notebook sales," he told Reuters.

Netbooks are small, inexpensive laptops--typically below $500--designed for Web browsing, email, and less-demanding media applications.

Intel Netbook share was about 16 percent in March of this year.

(Credit: Intel)

Intel's marketing chief, Sean Maloney, presenting at the company's investor meeting on May 12, said that the share of Atom processor-based Netbooks out of the total mobile PC market was about 16 percent in March. (See "Netbooks Mix of Mobile PCs" chart.) And he showed that the market share for Netbooks--month to month--hovers around 15 percent.

"The market has not all lept over to Netbooks," Maloney said at the meeting. "We're very comfortable with having established the (Netbook) category. We believe now that Netbooks are an under-distributed product line." Cannibalization, when it occurs, tends to affect low-end laptops based on Celeron processors, he said. "Atom is eating into Celeron. And we're quite fine with this," Maloney said.

Intel's ramp of inexpensive ultra-thin "CULV" laptops may eat into Netbook sales

(Credit: Intel)

Then later in his presentation, alluding to Intel Consumer Ultra-Low-Voltage (CULV) chips due to appear in inexpensive laptops starting in June, he said that this is "an opportunity for upsell. We don't need to give this stuff away. The industry doesn't need to give this stuff away. We can reach new price points and we can also get paid for it." CULV processors will be based, to a large extent, on Intel's Core 2 architecture, which offers better performance than the Atom chips used in Netbooks.

Maloney's comments imply that CULV-based laptops will offer stiff competition for Netbooks, especially high-end Netbooks priced above $400. Many CULV notebooks should fall into the $599 to $799 price range--the upper range of Netbooks--according to Ashok Kumar, an analyst at investment bank Collins Stewart. And some major PC makers expect CULV to become one third of total latop sales by next year, Kumar said.

Though no one can forecast how popular these new inexpensive thin laptops (think: MSI X-Slim series or a hypothetical $800-$900 Apple MacBook Air) will be, Intel is obviously expecting the category to take off. (See "Ultra-Thin Affordable Volume Ramp" chart.)

Maloney said growth markets for Netbooks are children--he said this market is still under-served--as well as Netbook bundles with telecommunications service providers. Verizon, for example, is now offering Hewlett-Packard Netbooks with 3G functionality built in.

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?"

SANTA CLARA, Calif.--Thin is getting thinner. That's Intel's message as a wave of affordable, ultra-thin laptops is expected to break this summer.

Erik Reid, Intel's director of marketing for Mobile Products Group

(Credit: Brooke Crothers)

Last week, I sat down with Erik Reid, director of marketing for the Mobile Products Group at Intel. Reid described Intel's strategy for its Consumer Ultra-Low-Voltage (CULV) processors--a segment that Intel describes as "ultra-thin"--and the chipmaker's first "Nehalem" mobile processors.

Ultra-thin is a big move for Intel. This will be Intel's primary mobile market focus in the next few months--until Nehalem appears later this year, according to Reid.

"It's a big change in the market. Consumer ULV has great battery life, very low TDPs," Reid said.

TDP, or thermal design power, describes the power envelope of a processor. For example, the current Apple MacBook Air uses Intel ultra-low-voltage processors with a TDP about half of the 35-watt rating for mainstream Intel mobile processors. Some of the lowest-power processors for the ultra-thin CULV category may be only a few watts more than the power-sipping Atom--which is rated at no more than 2.5 watts.

And what will consumers notice the most? Aside from good battery life, the laptop's aesthetics. "Systems can't ever be too thin. So thin will be a significant change in the industry and we're very pleased with the traction that we're seeing leading up to the introduction of those products," Reid said.

Prices will also get consumers' attention. "The affordability thing is really important. Look at your MacBook Air and think about that in terms of being available at different price points," said Intel spokesman Bill Calder.

Intel's initial processors for the ultra-thin category will be single core--like the current SU3500 processor. And the new chips won't all necessarily be Core 2--Intel's current mobile architecture--though Intel wouldn't elaborate on what other architectures--such as Pentium--it may use.

And size? Reid said some laptops will be 13.3-inch (diagonal screen size) designs, some will be a little larger, some will range down to 11.6-inch designs.

And what about cannibalization of the Netbook market--and vice-versa? "We're seeing very little cannibalization," Reid said. "Consumer ULVs are full-featured PCs. Price points will overlap. You might have some premium Netbooks in price bands where you'll see ULV," he said.

"We don't call it a Netbook if it's more than a 10.2-inch," Calder said. "The more that we can be clear about that and help people understand what each one is optimized for, the better the experience they will have," according to Reid. Netbooks are companion devices, Reid said. A person with a notebook is adding to their purchase when they get a Netbook. There are relatively few cases in which the Netbook is being used as the primary device, according to Reid. (Some readers may disagree with this.)

A notebook from MSI portends the crush of lower-cost, Intel-based MacBook-Air-like laptop designs to come.

The MSI X-Slim series herald Apple MacBook Air-like laptops without the luxury laptop tax

(Credit: MSI)

As I've written before, consumer ultra-low-voltage (CULV) chips will arrive in earnest this summer. The X-Slim X340 from MSI (Micro-Star International) is using the ULV SU3500, a precursor to lower-cost CULV Intel chips to come.

(Note: On April 19, Intel cut prices (PDF) on a wide range of processors. Though the SU3500 didn't see any cuts, the prices on its low-power cousins, the SL9400 and SU9400, were reduced 10 percent and 9 percent, respectively.)

What is CULV exactly? Well, one thing it's not is the Netbook-centric Atom processor: the 1.4GHz SU3500 is based on Intel's higher-performance mainstream Core 2 architecture. But like the Atom, it's a single-core chip. Single core means low power. In this case, the SU3500 draws only 5.5 watts, more than the Atom but a fraction of the dual-core mainstream Intel mobile chips rated at 25 and 35 watts. It also comes in a small 22mm chip package.

And what does all this mean? Better performance than Atom-based Netbooks. And in a well-designed system, longer battery life than a mainstream laptop.

Oh, and lower prices than luxury laptops like the Apple MacBook Air and Dell Adamo, which start at around $1,800. The MSI X-slim 340 with the SU3500 was launched this week in Japan and the higher-end version starts at around $1,000. U.S.-based reports say it is priced at $1,100.

The ultra-thin HP Pavilion dv2 laptop powered by AMD's Athlon "Neo" chip is also in this price range. AMD CEO Dirk Meyer said Tuesday that the single-core Neo processor will get a dual-core sibling dubbed "Congo" by summer.

Let the low-cost laptop competition begin.

Advanced Micro Devices' server roadmap is solid but its mainstream mobile lineup is languishing.

AMD's six-core "Istanbul" processor release was moved up to June

(Credit: AMD)

First, the good news. These days AMD is walking the talk. This is a radical change from the AMD of 2007-2008, which always seemed to have a hopper full of Intel-vanquishing paper processors that, if they did materialize, disappointed.

Fast forward to AMD's Tuesday earnings announcement, when the company said it was actually moving up the introduction its most sophisticated processor, the six-core Istanbul, to June.

And AMD has proved its silicon mettle at large server customers such as IBM and Sun Microsystems--the latter's executive vice president John Fowler had nothing but praise for AMD processors in high-end Sun server systems.

In a "Global Webcast" on server technology Wednesday, Patrick Patla, a vice president in AMD's server and workstation business, revealed a strong roadmap, saying that 8- and 12-core "Magny-Cours" processors will appear in 2010. "We're currently working on new processors which we expect will deliver more than 35 times the performance of the original single-core AMD Opteron processor released in 2003," Patla said in a statement.

Intel, of course, will also bring out many-core processors, but AMD is keeping pace, and, according to people who should know, like Sun's Fowler, maybe more than keeping pace.

Now, the bad news. This post today on CNET's Crave blog says it all: "One of our biggest issues with HP's Pavilion dv3z was its AMD processor, keeping it from beating out the performance of comparable 13- and 14-inch laptops with Intel Core 2 Duo CPUs." This is, by no means, the first review that expresses this sentiment. In short, AMD mobile platforms consistently come up short in the high-profile, burgeoning laptop market. Will AMD close the gap in 2009?

Maybe one answer to that question is AMD's Neo chip that powers the low-cost, ultra-thin HP Pavilion dv2 laptop. More than a Netbook but less than a mainstream laptop, this kind of sleek mobile device could eventually eclipse the high-end Netbook segment.

AMD CEO Dirk Meyer said Tuesday that the single-core Neo processor will get a dual-core sibling dubbed "Congo" by summer. A dual-core processor in this low-cost, MacBook-Air-for-the-masses category is a compelling proposition. AMD needs to stay ahead of the game, especially when Intel brings out chips for this category in the May-June timeframe.

Intel Chief Executive Paul Otellini said low-cost, ultrathin laptops with future Intel processors will be a big trend, a development that could upset the Netbook cart.

HP Pavilion dv2: harbinger of things to come

(Credit: CNET Reviews)

During Intel's first-quarter earnings conference call Monday afternoon, Otellini had a surprising amount to say about Intel's upcoming consumer ultra-low-voltage (CULV) processors, designed to fit into future ultrathin laptops that are expected to be priced significantly below $1,700-and-up luxury laptops such as the Apple MacBook Air and the recently-introduced Dell Adamo. The category of upcoming CULV-based laptops has been described by some observers as the MacBook Air for the masses.

CULV chips will be based on mainstream Intel chip designs, such as Intel's Core architecture, differentiating them from the lower-performance Atom processor, which powers low-cost Netbooks.

Otellini said in prepared remarks during the conference call that Intel "looks forward to the launch of our consumer ultra-low-voltage products, which will enable many new sleek thin-and-light notebooks at very compelling price points."

And later in the conference call, responding to an analyst's question, he said: "The big trend in notebooks this year, starting mid-year, is likely to be very well designed thin-and-light notebooks using the CULV or ultra-low-voltage products."

Otellini continued. "And I think you'll see those at very attractive price points. Up to this point in time, those machines have been sort of executive jewelry and I think they'll hit mainstream consumer price points."

He said that these notebooks will be different from Netbooks. "And we're expecting (there will be) a more clear distinguishing set of characteristics between Netbooks and notebooks," he said.

One issue likely to emerge is, why would anyone buy a $500 Netbook, like the HP Mini-Note 2140, if these more powerful, sleek laptops are available?

The Intel CEO also said that new versions of the Atom processor are coming and mentioned a dual-core version. Intel currently offers a dual-core 330 Atom model for Nettops--a low-cost desktop PC category--so this would presumably be in addition to this sole dual-core Atom offering.

Otellinli also said that the future Larrabee graphics processor shown at the Intel Developers Conference in Beijing last week was a "high-end version" and added that "there's obviously other versions that have far fewer cores for different price points. What you saw is the 'extreme' version, let me put it that way." Volume shipments of Larrabee are expected early next year, he said.