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Netbooks chewing at Apple, Intel finances?

updated 12:00 pm EDT, Wed September 24, 2008

Netbooks Affecting Apple

The rapid surge in popularity of netbooks is affecting the bottom line for Apple and its chipmaking partner Intel, ThinkEquity researcher Vijay Rakesh claims in a recent study of the market. The analyst's checks with both Amazon and physical retail show Apple as having to face increasing competition from Acer, ASUS, and MSI. Of the top ten portables at Amazon at the time of the report's creation, two Apple MacBooks were the only systems not to fit into the new category of mini-notebooks, according to Rakesh.

Suppliers also claim that the development of full-size notebooks has slowed while netbooks have spiked in production.

The impact is seen by Rakesh as potentially damaging to Apple, particularly during the late summer period as students return to college or university and may opt for a netbook for class rather than the more than twice as costly Apple alternative. Forecasts for Apple notebook shipments could be optimistic as a result, the analyst tells investors.

By extension, Intel is also considered at risk. Although its Atom processor is used in nearly all these netbooks, the low cost of the processor itself combined with the need for lower profit margins prevents the semiconductor firm from generating as much money per sale or from recovering its revenue through sheer volume.

Apple at present has no quick avenue into netbooks. Manufacturers of these systems are often required to use leaner versions of Linux or Windows to accommodate weaker processors and are often limited in terms of storage; Apple doesn't currently have a feature-reduced version of OS X for Macs. [via Barron's]

 
Previous Comments

bring it on

09/24, 12:17pm reply

Come on Apple. Bring on those netbooks. It's what I wished the MacBook Air was instead. Otherwise I'll be looking at trying to install OS X on one of the new Dells or HPs.

cmoney

Dedicated MacNNer

Joined: Sep 2000

+2

Good

09/24, 12:19pm reply

"Apple doesn't currently have a feature-reduced version of OS X for Macs."

I wouldn't want it anyway.

mgpalma

Fresh-Faced Recruit

Joined: Sep 2000

-2

Um... OS X iPhone?

09/24, 12:21pm reply

I think there's this new device called the iphone running a reduced feature version of OS X on a "weaker" processor.

I'm not suggesting that this would be the one they would use on a netbook but maybe they've done a good chunk of the leg work...

Guest

Fresh-Faced Recruit

Joined: Nov 1999

+7

OS Features

09/24, 12:24pm reply

Apple doesn't currently have a feature-reduced version of OS X for Macs.


10.3 worked well enough on a 500MHz G3 with 384 MB RAM.

An Atom CPU should not be a serious obstacle to overcome.

Guest

Fresh-Faced Recruit

Joined: Nov 1999

+5

Netbooks are weak...

09/24, 12:30pm (1 reply) reply

You can't possibly tell me that a user will go to a store: I want to buy a Macbook, wait a second this netbook is half the price, I'll take it instead.
That is BS.

Guest

Fresh-Faced Recruit

Joined: Nov 1999

+2

Apple needs

09/24, 12:32pm reply

a $500 and $700 solid state, sub-80gb, non upgradable uber thin netbook to compete with the Asus EeePC that runs the whole Mac OS X not just a limited version. 1024x768 on a 10" screen, no optical drive, lots of USB ports (at least 4), no firewire (make it an economy model), lots of wireless connectivity. It is entirely possible from Apple, using an LED screen and possibly even a backlit keyboard and aluminum casing...

Apple is good at the throw away computer, but this one needs to be totally recyclable when its life is disposed of. Oh, and this time lets make the battery user replaceable.

ibugv4

Fresh-Faced Recruit

Joined: Jun 2003

-2

Another analyst with...

09/24, 12:40pm reply

nothing better to speculate on decides that netbooks are the "new" thing and goes off half cocked. Internet "press" (and I use that term loosely MacNN)pick up the story and report on it with no counterbalancing opinions.

Netbooks pose no threat to apple and we will see good growth in apple notebook sales this quarter.

shmoolie

Fresh-Faced Recruit

Joined: May 2002

+2

Really Out of Touch

09/24, 12:52pm reply

The reasoning of these analysts is weak at best. I believe Acer is losing ground in the PC market based on the recently released performance number for PC sales. There is also the issue about who the buyers are, if you're buying a Mac, you're probably buying it b/c it runs Mac OS X. I can see NetBooks impacting the bottom line of other Windows/linux computers as a lot of PC shoppers buy the cheapest thing out there.

Apple has also gotten tons of flack about not including this or that in the MacBook Air, why would Apple even want the head-ache of Mr. Needs an ethernet port, or Mr. What-No-Firewire, etc.

Apple seems to understand the pulse, other all, of what the market will bear and what products will success (with minor exception - Cube), I don't think building one of these NetBook is innovation, and even if Apple did build one, I think it'd be another Cube.

Apple may build some web focus device, but it'd be more though through with both form factor and functionality and probably won't look like a NetBook at all.

slider

Mac Elite

Joined: Oct 1999

+1

Misguided

09/24, 02:39pm reply delete

'Apple doesn't currently have a feature-reduced version of OS X for Macs'

Obviously the person who wrote that has no understanding at all of the modular structure at the base of OSX. If you judge an operating system by what is required by Windows to do the same thing, it is no wonder that you can't foresee the future of technology. After the iPhone one would have thought however that these Dumbo's' just might have developed at least an inkling of what a game changer can do, especially when it is the same game changer.

spyinthesky1

Joined:

+2

not what students buy

09/24, 02:41pm reply

I work in higher education and can tell you my friends around the country are seeing a huge spike in Apple computers on college campuses. Four years ago you just saw iPods attached to windows machines. Now the demand from students (and faculty) is so great old windows only IT support is being replaced by all around IT for windows, osx and linux.
I just don't buy back-to-school sales will be hurting Apple by these netbooks. Real world is proving different.

macnews

Fresh-Faced Recruit

Joined: Jun 2004

+3

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