Sub-$300 Laptops: Where the Action Will Be

Right now, there seems to be at least one tech company that is incredibly positioned to take advantage of the crappy way we all feel about the economy -- and that would be Taiwanese computer maker Asus.

Not even a year ago, I stopped in at the Intel booth at the Consumer Electronics Show in Las Vegas, and the Intel (INTC) folks showed me a prototype of a new Linux-based, tiny Asus laptop that ran on Intel's new low-power, low-price Atom chip. When they told me it was supposed to cost between $300 and $500, I almost flipped. And Intel seemed very excited about the possibilities.

 

Here we are now, and Asus -- which has been getting attention all year for its low-priced EeePC line -- just came out with a $299 machine it's selling at Best Buy (BBY) The latest PC industry numbers from Gartner Group make it clear that this low end is where the big action is. The big guns of the PC industry -- H-P (HPQ) and Dell (DELL)-- don't have anything in that segment. If the economy stays down and people seek low-cost alternatives to the usual $1,000 laptops, this could act as a slingshot for Asus.

 

Not to mention Linux. So far, Linux on PCs has been a non-starter. But Asus and other mini-laptops may be the vehicle that puts Linux in front of Joe the Plumber types of users. Sounds like a whole new challenge for Microsoft (MSFT)...

Comments

[byrnemm:]

Nice. Sounds like consumers are finally realizing that it doesnt take a $1K notebook to use internet explorer, microsoft word, itunes, AIM, and illegally downloaded episodes of the office.

2008 Oct 17 12:02 PM

[nosajio:]

Not quite true. While I can't speak for HP, Dell is selling a 9" netbook that starts at $349.

2008 Oct 17 12:10 PM

[thedozer:]

whatever, I'll forever post on my mac book pro!

pc's suck boys

2008 Oct 17 01:41 PM

[Jason Schwarz:]

For so many buyers, price is the only thing that matters. Asus has just started a new round of margin destruction for all the low cost hardware makers. It's a very tough business model to compete with.

2008 Oct 17 02:03 PM

[bigmoney:]

There's a number of players in the ultra-portable niche, including Dell. Each is distinguished by features that may be a priority to certain users. The Asus has non-reflective screen, and 6-cell battery. The Dell has reflective screen, back-lit keyboard, and 4-cell battery. Etc.

These laptops are really too small to be considered laptop replacements, as you have to single finger type on them. However, at 2+ pounds, they can go many places that you wouldn't tote a real laptop around, and its a vast improvement over a handheld, such as blackberry, iphone, etc.

One thing to keep in mind, is that the laptop can be remote controlled (ie. vncserver) from a larger desktop / laptop, which means at home (or work), you can get data in and out of it with full size screen and keyboard.

2008 Oct 17 04:10 PM

[H.J. Huneycutt:]

Very interesting. I've been expecting Linux to gain popularity in a market downturn. It just makes too much sense when Microsoft is trying to extract more and more money out of consumers for products of declining quality. Why not go with the free choice?

I also won't be surprised if more small companies begin option for Linux over Windows.

2008 Oct 17 11:50 PM

[User 281757:]

Computer companies should create a new computer design, that would allow multiple people to do multiple, simple things on a single computer, in a home setting. For example, on same computer, one person could be doing voice chat with someone (that only needs a headset, not computer monitor), another could be watching a movie on a TV connected to the computer (that does not need computer monitor or headset), one could be editing a spreadsheet on the computer (that needs computer monitor)

Also, please provide EASY way to connect computers to TV, for watching those movies, etc on TV, given the growing trend of people watching movies/videos, etc

Thanks, Avinash
Published at blog: people20.blogspot.com/...

2008 Oct 18 02:26 PM

[User 281757:]

people20.blogspot.com/...
To request Dell/Gateway/Everex to come up with a the cheapest computer that you can tout as most economical($100-$300 range), that has:

a) No DVD or DVD/CD -RW
b) No lines to connect to printer, external displays
c) No dial-up modem
d) No unnecessary outputs etc at back of computer
e) Hard drive no more than 20Gig

Reason for above:
The computer would be forward looking. as (a) it uses the Internet for watching movies etc (hence no need for DVD or DVD/CD R-W), (b) it uses Internet for printing, it can upload files via Internet to print at Fedex-Kinko or Walgreens, (c) No dial-up model since it uses either DSL or cable, etc, (d) There are lots of unnessary pins at back of computer, they can be removed, (e) Since storage would be on Internet, Hard drive no more than 20Gig needed.

This is because, with online videos etc growing and storage of documents, spreadsheets etc stored online, there should be NO need to DVD, DVD-RW anymore. Also unnessarily creating DVDs harms the planet. This will also be cheaper for consumers.
But it does have good processing power and good network connectivity
Thanks, Avinash

2008 Oct 18 02:30 PM

[dig:]

just get an ipod touch it's cheaper has more apps and you can take it anywhere you like.

2008 Oct 19 10:03 PM

[Netbook Review:]

Prices of netbooks went down again today! The top ten selling notebooks listed today on Amazon.com (a trusted e-tailer) are mostly netbooks (and Macs). Your title mistakenly calls netbooks LAPTOPS. Netbooks are a separate new class of notebooks.
Anyone buying a cheap netbook should be warned: Netbooks do not perform just like a laptop. They have smaller processors, often use linux operating systems and have small screens and cramped keyboards.
That being said, netbooks can easily handle 80% of the typical users needs just fine.
Buyers need to read reviews and compare models before buying.

2008 Oct 22 10:31 PM