Intel Tries to Keep the Netbook Alive

Intel is cutting the price of a good Atom in half to encourage production of netbooks. They also charge different amounts for different OS… Hmmm. What’s that about? Is it competition on price/performance with ARM or is Intel taxing that other OS?

see Intel to offer Cedar Trail CPUs with prices 30-50% less than existing Atom CPUs

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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4 Responses to Intel Tries to Keep the Netbook Alive

  1. twitter says:

    Netbooks have taken a bite out of Microsoft’s bottom line for at least three years. There’s no room for the Microsoft tax at $200 and less retail.

    Intel’s move is obviously designed to undercut ARM, Google and gnu/linux netbooks. They were recently convicted of kickbacks to thwart AMD but may not have learned their lesson or actually become competitive. Supporting the Microsoft monopoly left Intel brain damaged.

    Microsoft has independently attacked netbook makers. They caused Asus to have their first ever quarterly loss. They made the netbook form factor fat enough to stumble through Windows 7 but crippled enough to not threaten laptop sales. Finally they purchased Skype which was a killer feature of the EEE PC back in 2007 – a $200 video phone that could also talk to ordinary phones. Today, in the US, big box stores have nothing but $400 “netbooks” with nothing but Windows 7 in customer free dead zones. Sales have declined as everyone escaped to Android, Tablets and other platforms out of Microsoft’s reach.

  2. Contrarian says:

    I don’t see where even that much is being said here. If Acer sells a model with MeeGo for one price and a model with Windows for another price, the cost is evident. But if they only have the one model, how could you ever tell? I don’t know anything about MeeGo either. Also, why couldn’t the OEM use Ubuntu like Dell did a couple of years ago?

    It seems to me that most of this is just gratuitous speculation. The only facts are that Intel is selling a new CPU model at half the price and it uses less battery power.

  3. Quoting Digitimes, “The platform is capable of supporting either MeeGo or Windows 7/8, but the ASP will vary depending on the vendors’ choice of operating system”

    Yes, I see it is ambiguous but the term “ASP” is applied to the netbook product earlier in TFA. That still implies that the price of that other OS will be exposed to consumers, a good thing.

  4. Contrarian says:

    “They also charge different amounts for different OS…”

    I don’t think that you read this article correctly. Intel is just selling the CPU and the price does not depend on the OS that is going to be used. Rather, what the OEM charges for its netbook product is dependent on other factors, costs of Windows included, but final prices could be as low as $199, presumably without Windows.

    I read this article to say that Intel is cutting the price for the netbook favored CPUs by a bunch and that may get Acer and Asus to pay more attention to that business. It strikes me that the move is aimed at competing with ARM technology and has nothing to do with Microsoft other than the obvious fact that Microsoft will profit from netbook sales as usual and the price drop might cut into potential tablet sales, keeping more business in the netbook corral.

    I bought an Acer One a year and a half ago from Amazon on a sale for $249, so I don’t see this “new” price as being so thrilling as to change much. The netbook is a great idea and I am pleased with it, but it is next to useless when you are not able to get a fast internet connection. I use it most often to just connect to my home workstation via remote desktop.

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