BGR:
Media tablet [iPad] shipments surpassed netbook shipments this quarter, reaching 13.6 million units, compared to just 7.3 million netbooks. Netbooks had previously led the way with 8.4 million shipments in 1Q11, compared to just 6.4 million media tablets.
Prior to the iPad, I spent a lot of time talking myself out of buying a Dell mini. It was a notebook I really adored because of the small size, low-price and overall portability. Being a fan of Windows equally as much as Macintosh, the Mini was under $500 and would be used primarily for booting up and launching a web browser. Some of the Mini models had 3G data cards built in which was a nice addition. I’d say netbooks didn’t take off because of the companies that were involved and this is why, once again, Apple wins at these markets. Here’s how the conversation goes for most netbook manufacturers:
Dell: “We have an idea for a netbook that has a 9-inch screen, a dual core processor, 4 gigabytes of ram and a small SSD. All we need is a small motherboard to fit in the shell without sacrificing battery life and we’re going to need an operating system to run it.
Intel: “The only processor we can give you for a battery of that size is our Atom chip. It’s a 32 nanometer chip but, if you want to use it, you’ll need to use our entire chipset which includes an integrated graphics card, wireless system (based on Centrino), our Bluetooth module and I/O chip. The whole package will cost about $300 even though the Atom chip itself would only cost you $75, we require you use everything or nothing.”
Microsoft: “Netbooks are going to possibly compete with full-fledged notebooks and we don’t want that. So, for a netbook form factor, you won’t be allowed the full Windows OS unless you can pay up $150 per license which will put you over cost and sell the Mini at a huge loss. We’ll give you an alternative version of Windows that runs even better on the Atom chipset and we’ll give it you to you at a price that you can’t say no to (around $25). The only thing is, this OS (Windows 7 Starter Edition) can only run on a machine with 2 gigabytes of ram or less. If you put 4 gigabytes in there, you’ll have to sell the Mini will the full version of Windows”
Dell: “So, our small form factor only allows us the Atom chipset and Starter edition of Windows (XP, Vista and 7)? Doesn’t Starter edition lock you to the candy skin of the OS, limit functionality and keep you from doing things like change the wallpaper?”
Microsoft: “Yup. The thing is, if you were to sell our full OS, you’d lose money on the Mini.”
Dell: “We’re already losing money on the Mini. That’s why we have to pre-load it with offers from AOL, WordPerfect 30 day trial and Rhapsody music. Already, the boot up time is cut in half by apps that our users don’t even need.”
Microsoft: “Take it or leave it.”
The result is that the Dell Mini costs $299-$599, is slow as hell, made entirely of plastic and is an absolute disappointment to use. My girlfriend has a Dell Mini and she hates it. I’ve used it and have tried to help her out by removing some processes and simplifying the UI so it runs faster but I can’t wait 10 minutes for the thing to boot up before losing patience and letting her borrow my iPad. The thing is, Apple is using Intel hardware but made demands that pushed Intel to the next level. Remember also that the MacBook Air used to cost $2500 and that’s way beyond what the Dell Mini costs because Apple used chips from Intel that didn’t suck (Core2Duo) and passed on the cost to the users. The first “UltraBook” from Apple came in 2008 with the MacBook Air and it was expensive but didn’t suck like Netbooks mostly because it cost 5 times as much and Apple only shipped it if it ran the complete and full Mac OS and not a simplified version. Apple could have used Atom chips and could have stripped down the OS but they didn’t and, in 2008, that cost slightly more than what it would cost to have a netbook.
Now, in 2011, Netbooks still suck and at $499, it’s a far better experience to just buy an iPad. I LOVE the Netbook form factor still because you do get a keyboard and trackpad even though they are low quality, you still get them and you can get real work done on one once the thing boots up and launches Word or Chrome. However, PC makers are at a crossroads.
A) Netbooks suck because the industry hasn’t made any improvements on cheap mobile chip speeds for that form factor
B) Apple is owning the UltraBook market with MacBook Air
C) Apple has provided a great alternative to Netbooks by way of the iPad that costs the same ($499) and is fast, virus-free and smaller
I feel bad for Netbook makers. They’re stuck with Atom chips, stuck with Windows Starter Edition and stuck at a price point that is barely better than the iPad on cheap plastic PCs that are 4 times as thick. Apple didn’t have to take on the Netbook by releasing a Netbook. Besides, if you really want a Netbook from Apple, buy a $999 MacBook Air. It’s twice as expensive but 10 times as fast, has a full size keyboard, multi-touch trackpad and an Intel Core i5 processor with 6 hours of battery life. Save for a couple of extra months and get a real usable laptop because, compared to the Dell Mini, the 11″ MacBook Air is worth far more than just $500 more in price.
Netbooks never had a chance because bureaucracy got in the way. Shame on Intel and Microsoft for killing the market. The only things netbooks had going for them is the price point and the iPad destroyed that argument a long time ago.