Folly – Wintel And “Partners” Response To Competition

There’s this thing about dinosaurs. They were magnificent and perfectly suited to their environment… until the environment changed.“Intel, Microsoft and notebook brand vendors are preparing to push entry-level notebooks priced at US$199-249 in the second half, according to sources from the upstream supply chain.” Wintel is like the dinosaurs when it comes to competition from the small cheap computers. Apparently, they continue to believe it’s only the “little guys” they have to worry about. M$ is giving away its OS to put on small cheap Wintel PCs. Intel is pricing down certain low-power CPUs. There’s nothing wrong with such moves except that it ignores much of the rest of the world and the fact that we can hook a monitor, keyboard and mouse onto a smartphone and get better performance than their offering. What use is a $200 clamshell compared to something that will fit in one’s pocket and which can be used on a desk or on the go? You could pay people to use these notebooks and still have no effect on that competition.

It’s just folly to assume that this move will have any effect on the huge volume of smartphones being sold. They are the real competition. Chromebooks are not the real competition. Chromebooks won’t be affected in the least by lowering prices on Wintel. It’s WINTEL that people are escaping, not high prices. Low prices are just a fringe benefit of using FLOSS on small cheap computers. People are tired of the Wintel treadmill, re-re-reboots, malware and bloat. You can pay people to use Wintel and they will just refuse often enough to affect the bottom line of the proponents of Wintel.

Still, it’s fun to see them try. I bet those machines would work great with GNU/Linux or Android/Linux… 😉 Finally, we won’t have to build a PC from parts to escape M$’s “tax” or Intel’s high prices.

See Vendors partner with Wintel to release US$199-249 notebooks for 2H14.

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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8 Responses to Folly – Wintel And “Partners” Response To Competition

  1. dougman says:

    Fedex and UPS are in the package business and generate PLENTY of revenue.

    At least Samsung and the other OEMs are SMART enough to pick up and use Linux.

    “Microsoft is over-valued given its slow earnings growth, its challenge in competing against Amazon in the cloud and Google and others in office software, and the near-impossible task of earning a return on its Nokia investment.”

    “Microsoft’s biggest cash sources are losing teeth. Windows is losing momentum, its second biggest profit maker, Office, is still going strong, but Google Apps has forced Microsoft to offer more flexible pricing on Office.”

    “Microsoft needs to become less dependent on Windows and make software for mobile devices running other operating systems while dumping the Xbox and other hardware businesses. That does not seem to be happening nor does Microsoft appear to have prospects for the kind of double digit earnings growth.”

    I think some funny cooking has been going on, and I am not alone.

    “THE ALLEGATIONS WERE shocking: For years, Microsoft has systematically distorted its profit figures in an effort to consistently beat Wall Street expectations and keep its stock price steadily rising. The false reports would violate SEC regulations, and amount to outright fraud.

    More shocking was the source of the allegations: Microsoft’s chief of internal audits, Charlie Pancerzewski, who reported directly to the company’s chief financial officer.

    Most shocking of all was what happened to Pancerzewski when he reported the suspicious bookkeeping to his supervisors, Microsoft CFO Mike Brown and chief operating officer Bob Herbold, in the spring of 1995. Soon afterward, Pancerzewski—who for nearly five years had received stellar performance evaluations—received his first-ever unsatisfactory one, and was eventually forced to resign.”

  2. wolfgang says:

    …very interesting…

    but just hot air maybe. all the gloom and doom laid at microsoft door and yet they have highest profit year ever and highest sales year ever and highest stock price since start of recession. smart linux people saying linux year just around corner and now bragging about chromebook getting to 0.25% of users and still whatever linux means is dragging along at 1% or so.

    microsoft can show the money and now samsung and apple can show the money, but nobody else in package business showing any money.

    wolfgang believe that all the linux hoopla is just noise from empty drums.

  3. dougman says:

    Anyone remember the M$ Office “New Era” ad campaign featuring, of all things, Dinosaurs?

    I find it funny that they chose to use that image, as it suits them perfectly today.

  4. luvr says:

    “When mentioning Apple and crapware, you should consider pre-X.”
    Absolutely! I have never understood how people could get so excited about such overpriced, unstable, crash-prone crap. My dad used to have a pre-X iMac. He apparently considered it easy to work with (which I find crazy; to me, the Mac GUI has always felt like a big confusing mess, and I believe that Ubuntu made a huge mistake trying to imitate it). I cannot count the number of times that I had to reinstall it, though; it just kept on breaking beyond repair. Blech!

  5. dougman says:

    LiveCD’s, neither Windows or OSX still have captured that idea, but package management was what blew me away years ago and yes, I am VERY sure someone got the idea from that system and derived the “App Store” we see so much of today.

    On the subject of $200 Windows devices, LOL.. they cannot seem to understand that no one wants Windows 8.

    Speaking of follies, I see M$ is killing RT finally, golly, I only figured that out what 1-2 years ago when it was first brought out. Two flaws, lack of apps and poor design led to it’s demise.

    The biggest failure of Windows RT was that it took away the single best part of Windows — the fact that it can run just about every app ever created. Instead, Windows RT can only run apps built for the Windows Store. You know those strange-looking tile apps in Windows 8? Yup, those are the ones.

    M$ never made a compelling case for why you should buy a Windows RT tablet over a rival tablet except for the fact that it runs Office. And that argument just went out the window when M$ brought Office to the iPad earlier this year.

    Now onto the subject of another folly, the recent firing of 18K, some asshat decided to get on YouTube and whine about it.

    “When I say ‘I don’t agree with the direction Microsoft is going’ I’m only speaking from public knowledge of 18,000 people being laid off. I have no knowledge of the companies internal strategic direction nor would I share it if I did so please do not ask.”

  6. oe says:

    GNU/Linux distro’s had out-Mac’ed the Mac by 2004-6 timeframe. I recall that’s when I stopped having Mac envy and the plans to get one dropped away experiencing Ubuntu, Mint, even Fedore and Puppy and seeing how “polished” Linux had become over the proceeding decade and was the first to marry polish with bulletproof robustness and efficiency. LiveCD’s that Windows nor OS-X has yet to producted, “integrated package management” more than a DECADE before “app stores” (ok, so Linux lacks slick marketers, until perhaps Ubuntu came along), smooth release upgrades in place nailed by mid-2000’s (still not there with Mac nor Win), and it goes on. Now until Linux distro’s really started polishing up in the mid-2000’s Apple only had to compete in the “slickness” mind-share with the MS juggernaut; not exactly a high bar. Their proprietary layers on top of the BSD open source kernel and low level tools is probably better than MS code nightmare, but probably is quite a bit worse the the GNU produced code in Linux – crowdsourcing and FOSS has a way of producing really tight code; almost Darwin’in in efficiency.

  7. Mats Hagglund wrote, “Mac OS X is far from excellent OS code. More likely big mess.”

    When mentioning Apple and crapware, you should consider pre-X. I saw that stuff in one school absolutely falling apart. A couple of machines eventually would not boot and I installed GNU/Linux on them. That carried the school for months. At times, folks could not even print from MacOS so they e-mailed files to me on GNU/Linux and I printed from there. Networking was slow and unreliable. An expert was flown in and got the MacOS system working beautifully. Within hours everything went to crap again. OS X was a huge improvement but price/performance in schools could not compete with that other OS let alone GNU/Linux.

  8. Mats Hagglund says:

    Or just like one Finnish veteran developers mentioned about a decade ago:

    “The secret of success of Microsoft is based on their lousy software”.

    On thing i have always mentioned to younger generation is that there ain’t correlation between economic success and high class production. Many “successful” companies have made terrible low level devices and services for mankind. For instance Mac OS X is far from excellent OS code. More likely big mess.

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