Business Tech

Cages at Best Buy are stocked with new models preloaded with Windows 7: behind bars until October 22.

(Credit: Brooke Crothers)

Best Buy is locked and loaded for the Windows 7 launch.

And I don't use the phrase "locked and loaded" figuratively. "Locked" in that all the new Windows 7 machines are locked down behind cages. And "loaded" in that all the cages are full. (See photos.)

I visited a Best Buy Friday night in Southern California where the cages were loaded exclusively with new models preloaded with Windows 7. And I learned a few odd tidbits from a stoked salesperson who had definitely been drinking the Windows-7-is-totally-awesome Kool-Aid. Let me add that the information was conveyed to me at one store in Southern California and may not necessarily apply to all stores nationwide.

Call it the Netbook halo effect: small and cheap is infectious. A quick peek at the lineups of new laptops slated for the Windows 7 (October 22) roll-out make it clear that the prices of mainstream and higher-end laptops are diving, even as the technology gets better.

"There's a new reality in laptop pricing," said Bob O'Donnell, an analyst at market-researcher IDC. "It's getting harder and harder to sell anything over $800." O'Donnell cited a data point that showed the average selling price of notebooks falling below desktops briefly in retail. "That may have been an anomaly, but the fact that's it's even close is indicative of this phenomenon."

That said, let's start with HP, the world's largest PC supplier. Svelte, well-built business laptops have historically been priced at a premium--starting at more than $1,000. Not anymore. On October 22, HP will begin selling the 13-inch ProBook 5310m that is about 0.9 inches thin, less than four pounds, and clad in an aluminum display enclosure and a magnesium alloy bottom case for $699.

HP ProBook 5310m starts at $699: this class of business laptop used to start at well over $1,000

(Credit: Hewlett-Packard)

That's about $800 less than the HP EliteBook 2530p business notebook series introduced in August of last year (that started at about $1,500). The 5310m is priced at $699 with an Intel Celeron dual-core processor and $899 with Intel Core 2 Duo chip. Both come with the Windows 7 operating system.

That's what I call a sea change in pricing.

But it gets better. Then there's the 4-pound HP Pavilion dm3 notebook that starts at $549 (no, it's not a Netbook) and will likely range up to about $700 in price for a reasonable memory and hard drive configuration. The 13-inch laptop comes with power-efficient Intel Core 2 Duo or AMD Neo dual-core processors and a standard 6-cell battery that delivers--so HP claims--up to 10 hours of battery life.

I was able to play with a dm3 at a function sponsored by Advanced Micro Devices recently in San Francisco. My immediate impression was that this was a light but solid design.

The Apple $999 MacBook is suddenly ... Read more

Fujitsu and Toshiba announced on Thursday that they have completed the transfer of Fujitsu's hard-drive business to Toshiba.

First announced in February, the agreement moves Fujitsu's former hard-drive business into a new Toshiba subsidiary company called Toshiba Storage Device Corp., or TSDC.

To ease the transfer, Toshiba will initially own 80 percent of TSDC, with the remaining 20 percent owned by Fujitsu. By December of 2010, Fujitsu will give up its entire share, making TSDC a wholly owned Toshiba subsidiary.

The conclusion of the deal had been postponed because of delays in obtaining regulatory approval from the European Commission.

Facing intense competition from rivals Seagate, Western Digital, and Hitachi, Toshiba is hoping to carve out a bigger slice of the hard-drive market. The company said it's looking to capture hard-drive sales of 600 billion yen ($6.7 billion) by its fiscal year ending March 2012 and win 20 percent of the market for the year ending March 2016.

Toshiba has unveiled solid-state drives based on the new mini-Sata interface standard, which lets manufacturers create very small drives for use in Netbooks and other portable or embedded devices.

The Japanese hardware maker introduced on Monday the two 32-nanometer-process SG2 SSD modules, each of which comes in two capacities. In a separate announcement the same day, the Sata-IO consortium said it is developing mini-Sata (mSata).

Toshiba's new solid-state drives

(Credit: Toshiba)

The new interface specification will provide a "high-performance, cost-effective storage solution for smaller devices like notebooks and Netbooks," said the Sata-IO consortium, which includes Toshiba.

One of Toshiba's SG2 modules uses an mSata interface, while the other uses a standard Sata II connector in a "Half-Slim" caseless format. The modules, which come in capacities of 30GB and 62GB, are each smaller than a business card, according to the manufacturer. The mSata module measures 30mm x 4.75mm x 50.95mm, while the Sata II module measures 54mm x 4mm x 39mm.

The company said that the 62GB version of the module is one-seventh the volume and one-eighth the weight of the standard 2.5-inch SSDs currently used in Netbooks.

"Our latest 32nm mSata and Half-Slim caseless modules enable hardware designers to add the performance and reliability advantages of a solid-state drive in a smaller, footprint for notebooks, portable electronics and other embedded storage applications," Toshiba memory chief Scott Nelson said in a statement.

The SG2 modules have interface speeds of up to 3Gbps, a maximum sequential read speed of 180MBps, and a maximum sequential write speed of 70MBps. The modules will go into volume production in October, Toshiba said.

Other manufacturers working on the mSata specification include Dell, Hewlett-Packard, Lenovo, Samsung, SanDisk, and STEC.

David Meyer of ZDNet UK reported from London.

Updated on September 16 at 6:30 a.m. PDT: adding information from Hironori Kasahara, a professor of computer science at Waseda University

Large electronics companies are building a chip for consumer electronics devices in Japan, while a China-based device manufacturer said it is working on devices using the ARM chip design, according to reports.

Waseda University's Hironori Kasahara wrote software for chips that Japanese companies are developing.

(Credit: Waseda Daigaku)

In Japan, some of the country's largest electronics and chip manufacturers are collaborating in an effort to develop a new low-power processor design for consumer electronics devices, according to Nikkei, which Forbes reported earlier.

The Japan-based group includes Fujitsu, Toshiba, Panasonic Renesas Technology, NEC, Hitachi, and Canon. The Ministry of Economy, Trade and Industry will offer between 3 billion and 4 billion yen (between $32 million and $43 million) to support the project, according to Nikkei.

Each company will develop their own central processing unit, or CPU. The report claimed that the chips would be compatible with "energy-saving" software developed by Hironori Kasahara, a professor of computer science at Waseda University, Nikkei said. Kasahara said he was developing an application programming interface (API) for multi-core processors, in response to an e-mail query.

A prototype is able to operate using less than 30 percent of normal power consumption and works even when a power outlet is not available, according to Nikkei.

Once a standard is established--the companies are targeting 2012--the CPU will be used in TVs, digital cameras, and other products. The companies may also sell the chip to other companies for use in automobiles, servers, and robots, Nikkei said.

That doesn't mean, however, the CPU will be adopted across Asia. Following the Nikkei article, Taipei-based Digitimes reported that circuit board makers in Taiwan are not enthusiastic about the prospects of a new CPU architecture.

A more immediate threat to Intel--and possibly a more potent rival to any chip that emerges from the Japan-based chip consortium--is ARM, the power-stingy processor design already used by a host of chip manufacturers including Samsung, Texas Instruments, and Qualcomm.

Hon Hai--also referred to as Foxconn--the world's largest contract electronics manufacturer, is readying small laptop designs based on the ARM processor, according to various reports.

A special assistant to the Hon Hai CEO was quoted by Reuters as saying that the company has "a few smartbook projects" based on the ARM chip. Smartbooks are essentially a smartphone in a larger format, such as a small laptop or tablet. These designs are being promoted by Qualcomm, Nvidia, and Freescale, among other chip manufacturers.

Intel is developing a new version of the Atom processor, a so-called system-on-chip, or SOC, that is slated for use in smartphones as well as consumer electronics products. The smartphone and consumer electronics segments are already highly competitive, unlike the PC market, which is dominated by Intel.

Updated on August 23 at 6:45 a.m. PDT: adding updated $299 price of Toshiba laptop.

Netbooks based on Intel's Atom processor faced a fresh assault this week: the $279 AMD-based Acer laptop.

Here's the $299--or this case, the $279---question: do you want a Netbook or a Notebook?

The choice: a Netbook with a 10-inch screen, an Intel Atom processor, no optical drive, and Windows XP that weighs about two pounds? Or, a notebook with a 15.6-inch screen, a higher-performance AMD or Intel processor, an optical drive, and Windows Vista that weights about six pounds?

Best Buy was selling a 15-inch Acer laptop for $279.99 on Wednesday.

(Credit: Brooke Crothers)

On Wednesday, Best Buy was offering an Acer laptop (AS5516-5474) that had been previously listed at $299.

A Best Buy salesperson in a Southern California store said these deals typically last a week.

Acer $279.99 laptop

(Credit: Best Buy )

The specifications: an AMD Athlon TF-20 64 processor, 15.6-inch WXGA display, 2GB DDR2 memory, DVD-RW drive, 160GB hard disk drive, ATI Radeon Xpress 1200 graphics, 802.11b/g wireless, 10/100 Ethernet LAN, and Microsoft Windows Vista Home Basic Edition.

Pretty close to basic mainstream-laptop hardware with the exception of the low-end AMD-ATI silicon and the older "g" wireless.

It weighs in at 6 pounds and measures 1.5-inches thick.

Earlier this month, Best Buy was offering a $299 Toshiba laptop sporting a 15-inch screen but then bumped the price up to $329.

Update: As of August 23, the price of the Toshiba Satellite with an Intel Celeron Processor (Onyx Blue, model: L305-S5955) had been cut to $299. The laptop showed wide availability, as of August 23.

But whether it's a $279, $299, or $329, it's a laptop design that has legs. And a real competitor to the 10-inch Netbook, which costs about the same.

And here's another question: As more of these $279-$329 deals are seen at Wal-Mart and Best Buy and as more ultra-thin laptops appear that approach $600 in price, what will happen to the popularity of the Netbook?

Toshiba has begun volume shipments of solid-state drives ranging up to 512GB in size, as these hyper-fast storage options bulk up on capacity.

Drives are also offered in 64GB, 128GB, and 256GB capacities and are built on a 43-nanometer manufacturing process using multi-level cell (MLC) technology. MLC technology allows drive makers to increase capacity while keeping production costs under control.

All drives come in either a 1.8-inch enclosure, typically used in ultraportable laptops, or a 2.5-inch housing, the standard size for mainstream laptops.

Toshiba said in December that it would begin shipments of a 512GB drive this year. And this drive became available exclusively on Toshiba laptops in May.

SSDs typically offer higher performance--often much higher performance--than hard-disk drives and are more durable since they have no moving parts.

But SSDs are still hobbled by a distinct price disadvantage. Toshiba's own Web site offers vivid proof. A Toshiba Portege R600 laptop is priced at $2,099 with a 160GB hard disk drive. Adding a lower-capacity 128GB SSD hikes the price to $2,499. Add the 512GB option and this goes to $3,499.

Back in December of last year, Toshiba said sample quantities ranged from $220 for the 64GB drive to $1,652 for the 512GB drive--though these prices have likely come down, as the drives are now shipping commercially.

For businesses up-front pricing may be less important. Over the lifespan of an SSD total cost of ownership may be lower, according to Gregory Wong, president, Forward Insights. Potential savings are particularly relevant to business laptop users, said Wong. And Intel recently did some in-house testing that showed that failure rates of SSDs are lower than hard disk drives.

On the performance front, Toshiba said it is using an advanced controller chip that enables a maximum sequential read speed of 230 megabytes per second and maximum sequential write speed of 180 megabytes per second. These read-write speeds are typically many times that of a hard disk drive. Toshiba did not specify random read and write speeds, which are also critical benchmarks for everyday data access.

Intel has recently begun shipping a 160GB solid-state drive that offers improved random write performance. The chipmaker was able to get up to a 2.5X improvement over previous versions of its SSDs.

Toshiba is not alone in announcing commercial shipments of large-capacity SSDs. Micron Technology's Crucial Technology unit has begun selling 256GB drives listed at $599, which beats Toshiba pricing at that capacity.

Note: Intel has found a bug in the new SSDs cited above that affects users who set a BIOS drive password. When disabling or changing the password followed by powering off/on the computer, the SSD becomes inoperable. The root cause has been identified and a fix is under validation. Intel expects to post an end-user firmware update to fix this bug in the coming weeks.

Best Buy has listed a 15-inch Acer laptop with relatively robust specifications for $299. But try getting your hands on one.

Though listed among the "new arrivals" on Best Buy's Web site, it is currently not available at stores or online. But there is anecdotal evidence of its existence. Very-recent user comments indicate that people have purchased the laptop and other stores, such as Wal-Mart Stores and Amazon (which shows it in stock), list it at a higher price.

Acer laptop comes with most of the fixins' for $299

(Credit: Best Buy)

And the specifications? An AMD Athlon 64 processor, 15.6-inch WXGA display, 2GB DDR2 memory, DVD-RW drive, 160GB hard disk drive, ATI Radeon Xpress 1200 graphics, 802.11b/g wireless, 10/100 Ethernet LAN, and Microsoft Windows Vista Home Basic Edition. Pretty close to mainstream-laptop hardware with the exception of the low-end AMD-ATI silicon and the older "g" wireless.

When contacted by phone, a Best Buy sales representative said the reseller has fielded a number of calls already about the laptop and confirmed that it was currently unavailable.

By comparison, what do you get for $299 when buying a diminutive Netbook? An Asus Eee PC at this price comes with an Atom N270 processor, 1GB memory, 10.1-inch screen, 160GB hard disk drive, Intel 950 graphics, a Webcam, no optical drive, and Windows XP.

And there are good deals on other, more-mainstream laptops at Best Buy. A Toshiba Satellite is listed at $349 with an Intel Celeron processor, 15.4-inch display, 2GB DDR2 memory, DVD-RW drive, 160GB hard disk drive, Intel 4500MHD graphics, 802.11b/g wireless, 10/100 Ethernet LAN, and Microsoft Windows Vista Home Basic Edition.

Back in the day, Netbooks ran Linux and packed solid-state drives. But Windows XP and big hard disk drives have prevailed.

Toshiba's mini NB200 does not offer a solid-state drive option in featured configurations nor Linux

The early Asus Eee PCs--which almost single-handedly created the Netbook market--came with a Linux operating system and small-capacity solid-state "flash" drives ranging from 2GB to 8GB. Early Acer Aspire Netbooks were also offered with Linux and a solid-state drive.

Those devices bore little resemblance to PC laptops. The Eee PC was a tiny, stripped-to-the-bone device that required minimalist hardware to run an efficient Linux OS. (Will a wave of Google Chrome OS-based devices revive the minimalist Netbook next year?)

Fast forward to today: Windows XP rules, with a Netbook-specific Windows 7 on the way. A glance at the Netbook lineups from any top PC maker--including Hewlett-Packard, Acer, and Toshiba--reveals few, if any, Linux offerings and equally few solid-state drive options.

Rather, beefy hardware configurations sporting 160GB hard disk drives and as much as 2GB of memory are the norm.

And the momentum for solid-state drives on mainstream laptops is waning too. A report from market researcher iSuppli says higher prices for flash memory chips may undermine high-capacity SSDs in laptops.

Average pricing for widely used 16-gigabit flash chips rose to $4.10 in the second quarter of 2009, a steep 127.8 percent increase from $1.80 in the fourth quarter of 2008, said Michael Yang, senior analyst for mobile and emerging memories at iSuppli, in a report released Wednesday.

As for Linux, time will tell if Netbooks return to their roots with Google's Android and/or the Chrome OS next year.