Linux Exec Expects Netbook Bundles Like Cell Phones
Look for personal computer users to soon get their hardware in the same way that they get their cell phones: for free as part of telecommunications service subscriptions, the executive director of the Linux Foundation said on Friday afternoon.
In a presentation at the O'Reilly OSCON (Open Source Convention), Linux Foundation Executive Director Jim Zemlin said a trend will emerge in which users would select a wireless or network service provider and get a free PC with a data plan. AT&T, he said, already is offering netbooks as part of a service plan, with the user getting the netbook for $50.
[ Earlier this year, Intel said it would turn Moblin over to the Linux Foundation. ]
In an interview last week, Zemlin elaborated on his free PC vision, enabled by the rise of netbooks running Linux. "What made the cell phone industry in the U.S. in particular take off in the mid-90s was the free phone," he said.
Carriers, he predicted, can provide Linux-based devices and develop their own app stores. Device makers also can provide these store, like Apple has, Zemlin said.
During his keynote, Zemlin emphasized the use of Linux in multiple types of systems and how Linux was changing the game in operating systems even on the client. "Today, everybody in the modern world uses Linux multiple times a day," he said, citing examples such as laptops, Google searches, and other systems.
Meanwhile, phones and PC devices are starting to converge, offering a lot of the same functionality, he explained. A PC can be cheaper than a phone, he said.
"If you look at what the iPhone has, it looks pretty similar to that PC," said Zemlin, comparing the iPhone to a $1000 ThinkPad PC.
Linux also is benefitting from the down economy, with customers looking to save costs, Zemlin said. It also is overcoming potential legal hurdles with developments such as Microsoft now embracing the GPL, Zemlin said.
Get Me Rewrite: Microsoft Alters Laptop Hunter Ads
Microsoft Chief Operating Officer Kevin Turner may have done "cartwheels down the hallway" when Apple called him to complain about the Redmond, Wash.-based company's "Laptop Hunters" campaign. But he must have cartwheeled past Microsoft's legal department because, as Advertising Age reports, the company has quietly altered its ad campaign in an apparent response to Apple's complaints.
The "Laptop Hunters" campaign, you may recall, features actors-on-the-street looking for low-cost laptops that meet some rather specific technical specifications. I do not believe I am spoiling the outcome of the TV commercials when I tell you that each one ends with the person choosing a Windows-based laptop. As easily as it may be to pick apart Microsoft's argument, there's no denying the ads have been effective, even forcing Apple to tweak its own "Get A Mac" campaign in response.
In June, Apple revamped its laptop line, which included price cuts for the MacBook Pro and MacBook Air models. Microsoft, however, continued to air its old -- and now outdated -- TV ads, prompting that phone call from Cupertino to Microsoft's Kevin Turner that the Microsoft executive was crowing about last week:
". . . two weeks ago we got a call from the Apple legal department saying, hey -- this is a true story -- saying, "Hey, you need to stop running those ads, we lowered our prices." They took like $100 off or something. It was the greatest single phone call in the history that I've ever taken in business. (Applause.)
I did cartwheels down the hallway. At first I said, "Is this a joke? Who are you?" Not understanding what an opportunity. And so we're just going to keep running them and running them and running them."
Microsoft may be planning to "keep running them and running them and running them," but they'll be somewhat altered, according to the Advertising Age report. The original version of an ad featuring a law student and her mother includes a scene in which the two sniff about Apple pricing. "This Mac is $2,000, and that's before adding anything," moans Mom.
And now? Says Advertising Age:
In the latest version of the ad, that portion has been edited out. The original ad has been removed from YouTube and other sites by Microsoft, and replaced with a version in which Lauren doesn't talk about how much the Mac costs, but she does say: "It seems like you're paying a lot for the brand."
A Microsoft spokeswoman confirmed to Advertising Age that the change was made to the ad to reflect Apple's new pricing. "This does not change the focus of the campaign, which is to showcase the value and choice of the PC," she added.
Does it seem disingenuous to boast about Apple's apparently-quite-legitimate complaints one week and then quietly accede to that same request the next? Maybe. But from Microsoft's vantage point, maybe it's better to eat a little crow than stare down an FTC complaint.
Apple COO: Laptop Strategy Is on Track, Even Without Netbook
Apple's chief operating officer Tim Cook stood by his previous assertion that Apple's not in the market to make a netbook when pressed repeatedly by analysts during Tuesday's conference call to discuss Apple's third-quarter results. At the same time, he noted that Apple's recent laptop price cuts have helped move inventory.
With everyone from HP to Asus manufacturing mini-notebook computers--known as netbooks--many industry pundits and analysts expect that it's only a matter of time before Apple competes in this segment of the market. Cook doesn't see it happening any time soon, however--a statement he's made before during past quarterly analyst calls.
"Our goal is not to build the most computers, it's to build the best," Cook told an analyst with RBC Capital--a pithy comment he's used before when asked about Apple selling netbooks or low-priced computers. "At this point, we don't see the way to build a great product for this $399, $499, this kind of price point unit."
Pressed by a Morgan Stanley analyst for more details on a possible Apple netbook or iPhone-based tablet computer, Cook said, "I never want to discount anything in the future, and never want to specifically discuss new products."
But Cook said that customers who buy such hardware are often disappointed with their purchases, and that Apple is focused on products with the best value.
"We're only going to play in things where we can deliver things that are very innovative that we're proud of," said Cook.
And Cook and Apple have reason to be happy with the company's laptop business. Apple sold 1.75 million notebooks during the quarter, up 13 percent from the 1.553 million it sold last year during the same quarter. The strong laptop sales were boosted in part by an overhaul of the company's laptop lineup at WWDC in June that included price drops.
Cook conceded that the average selling price (ASP) of Macs did fall somewhat in the quarter, but added that, "now you can buy a MacBook Pro for $800 less than last year," and that customers are happy with that strategy and pricing.
Overall, consumer sales were strong, and Cook said that compared to projections from market research firms, Apple was "7 to 9 points ahead of the market," and thrilled with those numbers.
Apple COO: Laptop Strategy Is on Track, Even Without Netbook
Apple's chief operating officer Tim Cook stood by his previous assertion that Apple's not in the market to make a netbook when pressed repeatedly by analysts during Tuesday's conference call to discuss Apple's third-quarter results. At the same time, he noted that Apple's recent laptop price cuts have helped move inventory.
With everyone from HP to Asus manufacturing mini-notebook computers--known as netbooks--many industry pundits and analysts expect that it's only a matter of time before Apple competes in this segment of the market. Cook doesn't see it happening any time soon, however--a statement he's made before during past quarterly analyst calls.
"Our goal is not to build the most computers, it's to build the best," Cook told an analyst with RBC Capital--a pithy comment he's used before when asked about Apple selling netbooks or low-priced computers. "At this point, we don't see the way to build a great product for this $399, $499, this kind of price point unit."
Pressed by a Morgan Stanley analyst for more details on a possible Apple netbook or iPhone-based tablet computer, Cook said, "I never want to discount anything in the future, and never want to specifically discuss new products."
But Cook said that customers who buy such hardware are often disappointed with their purchases, and that Apple is focused on products with the best value.
"We're only going to play in things where we can deliver things that are very innovative that we're proud of," said Cook.
And Cook and Apple have reason to be happy with the company's laptop business. Apple sold 1.75 million notebooks during the quarter, up 13 percent from the 1.553 million it sold last year during the same quarter. The strong laptop sales were boosted in part by an overhaul of the company's laptop lineup at WWDC in June that included price drops.
Cook conceded that the average selling price (ASP) of Macs did fall somewhat in the quarter, but added that, "now you can buy a MacBook Pro for $800 less than last year," and that customers are happy with that strategy and pricing.
Overall, consumer sales were strong, and Cook said that compared to projections from market research firms, Apple was "7 to 9 points ahead of the market," and thrilled with those numbers.
The Macalope Weekly: I Love My Mac-usin’ Son!
What gives?! The Macalope goes on vacation for a couple of weeks and Google gets into the operating system business? Well, fear not, loyal readers. He's back now, just in time to save you from the Wal-Mart OS or some other atrocity.
So, who wants a big slice of Dvorak Schadenfreude pie? Ha-ha! That's silly. We all do, of course. Meanwhile, David Coursey is throwing some loose charges around and Microsoft opening stores next to Apple's? There goes the neighborhood.
Thanksgiving is going to be real uncomfortable
Prepare your best Nelson Muntz impression, people, because John Dvorak's son just went Mac.
The family flag is flying at half mast.
The Dvorak family flag, as you know, is a jackass rampant, avec jerkweed azure.
Anyway, he ended up with a new MacBook Pro, one of the few laptops being sold that actually impresses me.
Well, let's see, there's the MacBook and the Air and the Pro. So, if "few" means more than one, then most of Apple's laptops impress Dvorak. Not that he'd put it that way.
All these whiz-bang features make me realize that I have fallen behind.
You mean the action's not in concern-trolling Apple anymore? But that gig seemed like such a sure thing! Oh, wait, he's not talking about that.
When I do use a laptop, I prefer the lightest machine I can get hold of. I continue to use an old Toshiba R200 weighing in at 2.2 pounds.
That's right. The go-to laptop of John C. Dvorak, technology pundit extraordinaire, is four years old. Now, John says he primarily uses a desktop machine and the desk he sits at is probably made of laptop review units, so it's not like he hasn't seen the improvement made to hardware under the new pope. But in terms of mainstream usage patterns, John's fallen so far behind he can't even see the behind of the thing he fell off of. So far behind, in fact, that technology has actually lapped him.
You see, John, that lightweight laptop sporting a processor from 2005 you've got is called a "netbook" these days. And they're apparently all the rage amongst the don't-mind-running-an-8-year-old-operating-system set.
By the way, Toshiba's spec page actually says the R200 weighs 2.68 pounds, which is pretty equivalent to the MacBook Air if you ever feel like using a modern laptop.
Dvorak distastefully spits out some nice words about Macs, but in typical fashion he can't complete a column about Apple without throwing in some trumped-up charges.
It's like a car dealership in the '70s, with layers of various salespeople, each trying to screw you.
Clearly the implication here is either that if you go into an Apple Store to buy a laptop, the salesperson will have one of those fake discussions with his manager about whether they're going to let you out of the store without buying AppleCare. The Macalope, of course, has bought many, many things at the Apple Store and has never once had to go through "layers of various salespeople." Yes, you're going to get asked if you want AppleCare--once, politely.
This discussion ignores the fact that AppleCare is actually a good idea, particularly for a laptop.
Maybe his son had a bad experience; the Macalope has seen people get passed to someone else to complete a transaction in a crowded store on a Saturday.
More likely John is just trying desperately to find something to complain about.
Because when mindlessly dissing Apple is pretty much your shtick, it really must be galling to have the fruit of your loins switch to the other team.
Apple's monopoly (actual monopoly not included)
When Coursey was in Egypt's land, Let my iPhone go; Locked down so hard they could not load, Let my iPod go.
David Coursey says Apple's iPhone and iPod Monopolies Must Go!
Is it really in customers' best interest for Apple to have such tight control over what iPhone and iPod users can buy?
Now, the brown and furry one has some of the same complaints about the App Store that Coursey has and there is no alternative to the App Store other than jailbreaking your phone. But apps written for the iPhone are not portable to other platforms, no matter who runs the store. So, other than limiting choice and making it unpleasant for developers, this is no more lock-in than any other scheme.
And media? C'mon. The Macalope currently has 12 feature-length movies in iTunes, exactly zero of which were purchased from the iTunes Store. He does buy some TV shows and the bulk of his music there, but frequently uses Amazon's MP3 store as well.
Yet, the tight linkage between iPod/iPhones, iTunes, and the Music Store is a big wall for potential competitors to climb. And if Amazon can't compete head-to-head with Apple, who can?
But Amazon does compete head-to-head with iTunes. It managed to get DRM-free music before Apple did. It might help if Amazon made a dedicated app that allowed you to purchase and download in one interface, but they don't want to be stopped from pointing out that people who bought songs by Coldplay also bought AXE Body Spray and lots of hair-care product.
That would dramatically increase competition in smartphones and players as well as between the Music Store and its suddenly compatible competitors.
Yeah! Why doesn't Apple do that?! It's almost like it's not in their business plan to promote competition against their products!
Okay, sarcasm aside, there is currently huge competition in smartphones. Not only does Apple not have a monopoly, it doesn't even have the largest market share.
Before you call something a duck, David, you might want to check to see if it has wings and quacks.
"Innovation" is the sincerest form of flattery
Hey, kids, if you're strolling through the mall some time and you're getting close to where the Apple Store is and you see a store that looks a lot like an Apple Store but reeks of brimstone and flop sweat, don't be fooled!
It's probably a Microsoft store. Don't worry, that confusion is apparently only temporary.
The executive was emphatic that the stores wouldn't imitate Apple retail, at least in the long term, but that they would "innovate."
Yeah-huh. As soon as we're done doing exactly what Apple does, we're going to innovate like hell! Watch this space, because the innovation train? She's a-comin'! Spoken like a true innovator.
You know, the one thing the Macalope has noticed about people who are really innovative, they don't say they'll be innovative next year.
Indian PC Sales Drop 7 Percent
PC sales in India were down 7 percent compared to the previous fiscal year, as a result of the economic downturn in the country, according to a survey by a trade body.Sales in the Indian fiscal year to March 31 were 6.8 million units, the Manufacturers Association of Information Technology (MAIT) said on Tuesday. While desktop sales declined by 4 percent, the highest drop of 17 percent was in sales of notebook computers. In the previous year, notebook computer sales were up 114 percent, according to MAIT.About 5.3 million desktops were sold in the year, with notebook computers, including netbooks, accounting for 1.51 million units. The netbook, a new category of low-cost notebook computers, caught the fancy of consumers, MAIT said. Sales of netbooks crossed 70,000 in the fiscal year.MAIT is now forecasting growth of 7 percent to over 7.3 million units in the fiscal year to March 31, 2010. A revival in the market was already evident in the January to March quarter, MAIT said.Growth by 7 percent in the current fiscal year may not reflect a strong rebound in the market, because there were two bad quarters in the last fiscal year, according to some analysts.A return to strong double-digit growth is likely only in the third quarter of the next calendar year, Kapil Dev Singh, country manager at research firm IDC India said on Wednesday.
Netbook Shipments to Double This Year, Research Says
Netbook shipments will double this year, while mainstream laptop shipments will remain flat, research firm DisplaySearch said on Monday.
Netbook shipments this year could reach around 32.7 million units, propelled by competitive pricing and improved hardware capabilities. Shipments will be close to double that of 16.4 million netbooks that shipped last year, said John Jacobs, director of laptop research at DisplaySearch.
The latest estimate represents a hike on the company's previous forecast of 27.5 million netbook shipments for the year.
Netbooks will also take a larger chunk of worldwide laptop shipments as mainstream laptop shipments flatten, Jacobs said. Worldwide mainstream laptop shipments will total 129.5 million, flat compared to last year.
Buyers are drawn to netbooks because of competitive pricing between US$300 to $500, Jacobs said. PC makers have also improved netbook hardware with larger screens and keyboards, which could further boost demand. The improvements were necessary as the cramped keyboards and small screens were resulting in many netbooks being returned, Jacobs said.
Some PC makers are also offering netbooks with better graphics capabilities, Jacobs said. For example, Lenovo recently introduced the IdeaPad S12 netbook, which has a 12-inch screen that can play full high-resolution movies with the optional Ion platform from Nvidia. The platform couples Nvidia's GeForce 9400 graphics core with Intel's Atom chip.
Companies like Apple previously dismissed netbooks, saying the small laptops had junky hardware and limited software capabilities.
Hardware improvements could blur the lines between netbooks and mainstream laptops in the future, Jacobs said. That could affect the shipment of laptops priced at around $800, he said. Lines could blur further when new ultrathin laptops priced between $500 and $800 make an impact, Jacobs said. PC makers recently started offering lightweight ultrathin laptops, which are more powerful than netbooks, but offer less performance than mainstream laptops.
Netbook shipments are getting a boost in developing countries, where buyers are adopting them as primary laptops. In developed countries, however, netbooks are viewed as secondary devices to mainstream laptops, Jacobs said.
Frozen IT budgets have also slowed down mainstream laptop shipments, though that may change in 2010 when customers look to upgrade their PCs to Microsoft's upcoming Windows 7 OS. There is a lot of momentum behind Windows 7, but unlike mainstream laptops, users won't buy netbooks specifically for the OS, Jacobs said. Microsoft has said it would offer a version of Windows 7 for netbooks.
DisplaySearch said that of the 32.7 million netbooks estimated to ship this year, EMEA (Europe, Middle East and Africa) will account for 13.1 million units. North America shipments will total 8.8 million, with Greater China totaling 3.9 million units. Shipments in Asia will touch 3.0 million, while Japan and Latin America will account for 1.9 million units each.
Netbook shipments for the second quarter of 2009 totaled 7.07 million, just shy of 100 percent year-over-year growth, Jacobs said.
Netbook Shipments to Double This Year, Research Says
Netbook shipments will double this year, while mainstream laptop shipments will remain flat, research firm DisplaySearch said on Monday.
Netbook shipments this year could reach around 32.7 million units, propelled by competitive pricing and improved hardware capabilities. Shipments will be close to double that of 16.4 million netbooks that shipped last year, said John Jacobs, director of laptop research at DisplaySearch.
The latest estimate represents a hike on the company's previous forecast of 27.5 million netbook shipments for the year.
Netbooks will also take a larger chunk of worldwide laptop shipments as mainstream laptop shipments flatten, Jacobs said. Worldwide mainstream laptop shipments will total 129.5 million, flat compared to last year.
Buyers are drawn to netbooks because of competitive pricing between US$300 to $500, Jacobs said. PC makers have also improved netbook hardware with larger screens and keyboards, which could further boost demand. The improvements were necessary as the cramped keyboards and small screens were resulting in many netbooks being returned, Jacobs said.
Some PC makers are also offering netbooks with better graphics capabilities, Jacobs said. For example, Lenovo recently introduced the IdeaPad S12 netbook, which has a 12-inch screen that can play full high-resolution movies with the optional Ion platform from Nvidia. The platform couples Nvidia's GeForce 9400 graphics core with Intel's Atom chip.
Companies like Apple previously dismissed netbooks, saying the small laptops had junky hardware and limited software capabilities.
Hardware improvements could blur the lines between netbooks and mainstream laptops in the future, Jacobs said. That could affect the shipment of laptops priced at around $800, he said. Lines could blur further when new ultrathin laptops priced between $500 and $800 make an impact, Jacobs said. PC makers recently started offering lightweight ultrathin laptops, which are more powerful than netbooks, but offer less performance than mainstream laptops.
Netbook shipments are getting a boost in developing countries, where buyers are adopting them as primary laptops. In developed countries, however, netbooks are viewed as secondary devices to mainstream laptops, Jacobs said.
Frozen IT budgets have also slowed down mainstream laptop shipments, though that may change in 2010 when customers look to upgrade their PCs to Microsoft's upcoming Windows 7 OS. There is a lot of momentum behind Windows 7, but unlike mainstream laptops, users won't buy netbooks specifically for the OS, Jacobs said. Microsoft has said it would offer a version of Windows 7 for netbooks.
DisplaySearch said that of the 32.7 million netbooks estimated to ship this year, EMEA (Europe, Middle East and Africa) will account for 13.1 million units. North America shipments will total 8.8 million, with Greater China totaling 3.9 million units. Shipments in Asia will touch 3.0 million, while Japan and Latin America will account for 1.9 million units each.
Netbook shipments for the second quarter of 2009 totaled 7.07 million, just shy of 100 percent year-over-year growth, Jacobs said.
Google Chrome OS, BlackBerry Tour, and CrunchPad on PC World Podcast 35
This week on the PC World Podcast, editors Robert Strohmeyer, Tim Moynihan, and Ginny Mies try to figure out what the just-announced Google Chrome OS might look like... and how it will be different from Android. Plus, what does Google's new Web-centric operating system mean for the future of installed software and gaming? Only time (and more information about Google Chrome OS) will tell.
There's a brand-new BlackBerry on the scene, and it's called the BlackBerry Tour. The new smartphone offers a blend of the best features from the BlackBerry Curve and the BlackBerry Bold, but the Verizon version of the phone is missing one key feature. Find out what that mysterious omission is, and hear editor Ginny Mies's take on the new phone. Is it good enough for you to consider an upgrade?
And finally, some back-to-the-future news. Michael Arrington, founder of the popular TechCrunch blog, had an announcement of his own this week: an upcoming Web tablet called the CrunchPad. It'll do one thing and one thing only: surf the Web (watch a video of the prototype CrunchPad in action). But it won't be the first device built to do that one task, and previous devices didn't really catch on.
Plus, we want to know what you think will happen first: an Apple lawsuit against Arrington, or an Arrington lawsuit against Apple. Write us at podcast@pcworld.com to let us know your thoughts.
Listen in on iTunes or via the PC World Podcast RSS feed.
Google Chrome OS, BlackBerry Tour, and CrunchPad on PC World Podcast 35
This week on the PC World Podcast, editors Robert Strohmeyer, Tim Moynihan, and Ginny Mies try to figure out what the just-announced Google Chrome OS might look like... and how it will be different from Android. Plus, what does Google's new Web-centric operating system mean for the future of installed software and gaming? Only time (and more information about Google Chrome OS) will tell.
There's a brand-new BlackBerry on the scene, and it's called the BlackBerry Tour. The new smartphone offers a blend of the best features from the BlackBerry Curve and the BlackBerry Bold, but the Verizon version of the phone is missing one key feature. Find out what that mysterious omission is, and hear editor Ginny Mies's take on the new phone. Is it good enough for you to consider an upgrade?
And finally, some back-to-the-future news. Michael Arrington, founder of the popular TechCrunch blog, had an announcement of his own this week: an upcoming Web tablet called the CrunchPad. It'll do one thing and one thing only: surf the Web (watch a video of the prototype CrunchPad in action). But it won't be the first device built to do that one task, and previous devices didn't really catch on.
Plus, we want to know what you think will happen first: an Apple lawsuit against Arrington, or an Arrington lawsuit against Apple. Write us at podcast@pcworld.com to let us know your thoughts.
Listen in on iTunes or via the PC World Podcast RSS feed.