Netbook PCs gain power and challenge notebooks

It's getting harder and harder to tell the difference between a "netbook" and a "notebook". Last year, Microsoft and Intel colluded to set forth the definition of a so-called netbook PC. For example, Microsoft characterized machines as ultra-low-cost PCs if they ran a processor running at or below 1-GHz and possessed 1GB or less of RAM. Furthermore, the machine could have a maximum hard drive storage of 80GB and a puny 10-inch screen.

Hardware manufacturers are ignoring these spec's by building low-priced laptops with features that were once only available in higher-end machines. The Dell Inspiron Mini 12 netbook ships comes with a 12-inch screen and a nearly full laptop-size keyboard. ASUSTek Computer Inc. announced that an upcoming model of its popular Eee netbook, the 1004DN, would ship with an internal DVD drive, a 10-inch LCD screen that supports 720p HD video, and a 120GB hard drive. These and other similar netbooks are all priced under $650 (US).

For some users, there is no real requirement to pay the Microsoft premium. Free or low-cost Linux operating systems will handle web browsing and typical document creation just fine. This will put dramatic pricing and revenue pressure on both Microsoft and Intel. Expect to see their shares of the operating system and chip markets to continue to degrade over the next several years.

Read more at ComputerWorld: Beefed-up netbooks blur lines with notebook PCs

Apple is moving the target

Over the last few weeks, Palm has been attempting to generate buzz around the Pre, which is expected to hit the market later this year. Palm believes that this new device will draw existing iPhone users as their 2-year contracts come up for renewal. As I have noted before, I have serious doubts about the efficacy of this strategy, and Apple is making it even more of a long-shot than ever.

On March 16, Apple previewed the iPhone 3.0 operating system. It includes some pretty rudimentary upgrades, like the ability to cut, copy & paste. Unfortunately, the new OS still doesn't support Flash, which a serious limitation on effective web browsing. But it does include some game-changing features like peer-to-peer capabilities. According to the company, users will be able to link up with other iPhone users via stereo Bluetooth, making their media files instantly available. I would imagine that this can easily be extended to include more mundane filesharing, too.

For corporate IT managers, this will mean that smartphone security policies will need to be updated and users will need to be cautioned about sharing sensitive data via Bluetooth.

Nevertheless, I believe this puts a major obstacle in the path of Palm's return to relevance.

More information from eWeek.com: Apple's New iPhone OS
More info from Apple: iPhone Home Page

IEv8 Survey Results: users are ambivalent

Over the past 10 days, I've asked colleagues and connections to answer a few questions about their intentions to use the next version of Internet Explorer. Version 8 is expected to be released in the next few weeks, and Microsoft is expecting the new product to reverse the trend away from IE in the browser wars. Based on these results, I'd say their confidence is not completely justified.

Of the 57 respondents, only 25 indicated that they were likely or very likely to install and and use IEv8. That's just about 45% of the admittedly small population. What should concern Microsoft is that one-third of the respondents (19) were consciously choosing NOT to install and use the new version of IE. Nearly 23% were neutral.

That means over 55% of regular internet users (93% of respondents use the internet more than 4 hours per week) either don't care about their choice of browser, or are actively choosing against the Microsoft product.

There will be more to come regarding these results, including an analysis of how current browser choices are related to the choice of future browser use. If you're interested in having your opinion be a part of this survey, then please click here to take survey.

Dell moves closer to the handheld market

At a March 24, 2009 speech in Tokyo, Michael Dell announced that his company is "...exploring smaller-screen devices. We don't have any announcements to share today, but stay tuned as when we have new news we will share that with you." Their laptops and notebooks have been shipping with 3G radios for the past three years, and it's a reasonably understandable path from small-form PCs to smartphones and handheld devices. Along those lines, an acquisition of Palm wouldn't be out of the question.

I can certainly understand why Dell would want to get into the handheld business. They bring brand recognition and a fairly strong reputation to the table, along with firm grasp of what it takes to build hardware at a low cost.

Nevertheless, it will be very challenging to displace the BlackBerry and the iPhone, even at a relative discount.

Dell Inc.: DELL (NASDAQ)
Read more at ComputerWorld: Michael Dell hints at smartphones, mobile Internet devices