Subsidies follow AT&T into netbook market
http://arstechnica.com/telecom/news/2009/03/subsidies-follow-att-into-netbook-market.ars
AT&T plans to expand its netbook subsidies to makers beyond Acer and Dell, eating hundreds in upfront costs in exchange for two years of high monthly 3G cellular data fees.
By Glenn Fleishman | Last updated March 3, 2009 9:25 PM CT
Subsidies follow AT&T into netbook market
AT&T plans to expand an existing subsidy program that pairs a netbook with a cellular data modem and two-year contract. With fees of $60 for unmetered service and a maximum of 5 GB of data usage each month, AT&T has plenty to give to push a new market.
Netbooks are designed with minimal functionality and low-powered processors. But connectivity is the heart that beats inside this massively growing segment of portable sales. Research firms expect sales to rise from 7 percent of portables in 2008 to 12 percent in 2009, or about 35 million units.
By pairing a subsidy, a contract, and ubiquitous high-speed data access, AT&T may have found a niche in the middle of an otherwise moribund business and consumer market. Telecoms often spend hundreds of dollars in marketing to acquire new customers for voice and data services that produce a few thousand dollars in revenue over two years.
AT&T already subsidizes certain Acer and Dell netbooks to get the price down to $99, with rebates of $250 to $350.
Investor's Business Daily reports that AT&T is working on deals with other netbook makers, and would be happy to extend subsidies far outside phones to any gadget that could sport a cellular modem, such as cameras or gaming systems.
Interestingly, Clearwire and Sprint Nextel have long extolled the notion of WiMax, a competing data network standard so far rolled out in just two US cities, as allowing an ecosystem of devices to have always-on high-speed access with a bundled data plan to avoid high per-device charges. That hasn't materialized yet.
Saturday, March 14, 2009
Eee PC T91 touchscreen netbook - first look
Eee PC T91 touchscreen netbook - first look
Philip Barker - 26 February 2009 - 5:43pm
Following a visit from Asus earlier today, we got the opportunity to get an exclusive look at some of its upcoming products – including the first touchscreen Eee PC Netbook – the Eee PC T91.
This tiny device is little larger than the first-generation Eee PC 701 – with an 8.9-inch screen, but you’ll now find a swivelling touchscreen panel that allows use as a Tablet PC.
The screen is one of the T91’s best features. It has the same 1024 x 600 pixel resolution as most of the other netbooks we’ve seen, but colours are brilliantly vivid, bringing photographs and movies to life. Images are also clear and sharp – which is unusual on a touchscreen panel. The glossy finish will frustrate some, however, proving reflective in brighter conditions.
The first T91 models to hit the shelves will feature Windows XP, with following products featuring Windows 7. Asus was also keen to stress that the T91 will ship with the company’s own eTouchSuite software, offering a user-friendly environment more suited to touchscreen use.
The sample we saw was a pre-production unit, and it’s too early to judge on build quality. However, there’s plenty of space for keys of a reasonable size, and we found usability to be reasonable.
Components such as the Intel Atom processor and 1024MB of memory are standard netbook fare, although more unusual options include a GPS chip for satellite navigation and a TV tuner.
On sale towards the end of April, prices start at around £420 (inc. VAT).
Philip Barker - 26 February 2009 - 5:43pm
Following a visit from Asus earlier today, we got the opportunity to get an exclusive look at some of its upcoming products – including the first touchscreen Eee PC Netbook – the Eee PC T91.
This tiny device is little larger than the first-generation Eee PC 701 – with an 8.9-inch screen, but you’ll now find a swivelling touchscreen panel that allows use as a Tablet PC.
The screen is one of the T91’s best features. It has the same 1024 x 600 pixel resolution as most of the other netbooks we’ve seen, but colours are brilliantly vivid, bringing photographs and movies to life. Images are also clear and sharp – which is unusual on a touchscreen panel. The glossy finish will frustrate some, however, proving reflective in brighter conditions.
The first T91 models to hit the shelves will feature Windows XP, with following products featuring Windows 7. Asus was also keen to stress that the T91 will ship with the company’s own eTouchSuite software, offering a user-friendly environment more suited to touchscreen use.
The sample we saw was a pre-production unit, and it’s too early to judge on build quality. However, there’s plenty of space for keys of a reasonable size, and we found usability to be reasonable.
Components such as the Intel Atom processor and 1024MB of memory are standard netbook fare, although more unusual options include a GPS chip for satellite navigation and a TV tuner.
On sale towards the end of April, prices start at around £420 (inc. VAT).
Android sales to outstrip iPhone by '12?
March 9, 2009 9:08 AM PDT
Android sales to outstrip iPhone by '12?
by Natasha Lomas digg_url = 'http://digg.com/gadgets/Android_Sales_to_Outstrip_iPhone_by_2012';
The iPhone's lead over smartphone upstart Android may be short-lived, according to an industry watcher's predictions.
Android smartphone sales will outstrip iPhone sales by 2012, market researcher Informa Telecoms & Media has predicted in a new report.
Last month, Telefonica Europe said that sales of the iPhone topped 1 million in the U.K. Although T-Mobile UK--the exclusive carrier of the first Android device, the G1--wouldn't say exactly how many of the devices had been sold, it did say the handset now accounts for 20 percent of its contract sales.
Photos: Hands-on with the HTC Magic Android phone
View the full gallery
Web behemoth Google released the first beta developers kit for its Android open OS platform in August, with the first handset--the G1 smartphone--launching the following month. A second handset, the Magic, is expected to arrive next month.
Apple's iPhone has a slightly longer heritage--with the first device arriving in the U.S. in June 2007. However, the iPhone 3G hit stores last July, giving it only a few months' head start on its Google rival.
Both Android and OS X are eating into the market share of the best-selling smartphone OS maker, Symbian. Last year, just under half of smartphones sold were based on Symbian--a drop of 16 percentage points from the year before when it had 65 percent market share. BlackBerry OS, Linux, and Windows Mobile are also gaining popularity and eating some of Symbian's share, according to Informa.
However, London-based Informa believes Symbian's switch to open source will help the Symbian Foundation maintain its leadership over Android, Linux, and Microsoft over the next few years.
Nearly 162 million smartphones were sold last year, surpassing laptop sales for the first time, according to Informa. The market researcher forecasts that smartphone penetration will reach 13.5 percent of new handsets sold this year and that the figure will reach 38 percent by 2013.
Informa also suggests smartphone sales will be immune to the global economic downturn, maintaining a prediction of "robust growth" of 35.3 percent year over year.
Total handset sales, by contrast, won't be as resilient and are set to fall 10.1 per cent year over year, Informa predicts.
Natasha Lomas of Silicon.com reported from London.
Android sales to outstrip iPhone by '12?
by Natasha Lomas digg_url = 'http://digg.com/gadgets/Android_Sales_to_Outstrip_iPhone_by_2012';
The iPhone's lead over smartphone upstart Android may be short-lived, according to an industry watcher's predictions.
Android smartphone sales will outstrip iPhone sales by 2012, market researcher Informa Telecoms & Media has predicted in a new report.
Last month, Telefonica Europe said that sales of the iPhone topped 1 million in the U.K. Although T-Mobile UK--the exclusive carrier of the first Android device, the G1--wouldn't say exactly how many of the devices had been sold, it did say the handset now accounts for 20 percent of its contract sales.
Photos: Hands-on with the HTC Magic Android phone
View the full gallery
Web behemoth Google released the first beta developers kit for its Android open OS platform in August, with the first handset--the G1 smartphone--launching the following month. A second handset, the Magic, is expected to arrive next month.
Apple's iPhone has a slightly longer heritage--with the first device arriving in the U.S. in June 2007. However, the iPhone 3G hit stores last July, giving it only a few months' head start on its Google rival.
Both Android and OS X are eating into the market share of the best-selling smartphone OS maker, Symbian. Last year, just under half of smartphones sold were based on Symbian--a drop of 16 percentage points from the year before when it had 65 percent market share. BlackBerry OS, Linux, and Windows Mobile are also gaining popularity and eating some of Symbian's share, according to Informa.
However, London-based Informa believes Symbian's switch to open source will help the Symbian Foundation maintain its leadership over Android, Linux, and Microsoft over the next few years.
Nearly 162 million smartphones were sold last year, surpassing laptop sales for the first time, according to Informa. The market researcher forecasts that smartphone penetration will reach 13.5 percent of new handsets sold this year and that the figure will reach 38 percent by 2013.
Informa also suggests smartphone sales will be immune to the global economic downturn, maintaining a prediction of "robust growth" of 35.3 percent year over year.
Total handset sales, by contrast, won't be as resilient and are set to fall 10.1 per cent year over year, Informa predicts.
Natasha Lomas of Silicon.com reported from London.
Touch Screen
Video: New startup beats Apple to the punch with touchscreen netbook
http://blogs.techrepublic.com.com/hiner/?p=1247
Rumors have swirled this week about Apple creating a touchscreen netbook, but a startup called AlwaysInnovating has recently unveiled a product called the Touch Book that will get the jump on the Mac.
CNET News has a video of AlwaysInnovating CEO Gregoire Gentil giving a demo of the Touch Book. I was impressed at how versatile the machine is. It twists and folds like a standard Tablet PC, but the screen also separates from the keyboard so that you can use just the flatscreen as a touch interface. Plus, it has a magnetic lid so that you can stick it to a metal surface like a refrigerator.
In an Apple-like move, AlwaysInnovating has created the product with hardware/software integration. The Touch Book, which will cost $399, uses a customized version of Linux with a user interface designed to optimize the touch interface. Unfortunately, the UI is not shown in the video.
The Touch Book is also built on an ARM processor, which will make battery life great but could compromise performance.
http://blogs.techrepublic.com.com/hiner/?p=1247
Rumors have swirled this week about Apple creating a touchscreen netbook, but a startup called AlwaysInnovating has recently unveiled a product called the Touch Book that will get the jump on the Mac.
CNET News has a video of AlwaysInnovating CEO Gregoire Gentil giving a demo of the Touch Book. I was impressed at how versatile the machine is. It twists and folds like a standard Tablet PC, but the screen also separates from the keyboard so that you can use just the flatscreen as a touch interface. Plus, it has a magnetic lid so that you can stick it to a metal surface like a refrigerator.
In an Apple-like move, AlwaysInnovating has created the product with hardware/software integration. The Touch Book, which will cost $399, uses a customized version of Linux with a user interface designed to optimize the touch interface. Unfortunately, the UI is not shown in the video.
The Touch Book is also built on an ARM processor, which will make battery life great but could compromise performance.
IDC Report on Netbooks
IDC Report on Netbooks
March 13, 2009
IDC - Press Release
dotted lines
Mini-Notebooks Make Explosive Entry into EMEA PC Market in 2008, and Momentum Will Continue in 2009, Says IDC
16 Feb 2009
LONDON, February 16, 2009 — Following a major surge in the back-to-school season, mini-notebook momentum continued unabated in the final quarter of the year. Thanks to robust consumer demand in Western Europe in the run up to Christmas, overall EMEA mini-notebook shipments reached 3.6 million units, in line with expectations, representing 20% of total portable sales and 30% of consumer portables in EMEA in 4Q08.
For the full year 2008, mini-notebook shipments in EMEA reached close to 7 million units. Positioned as a secondary device for Internet-centric use and representing the first affordable ultraportables in the retail channel, mini-notebooks drove strong consumer momentum and resulted in a major sales boom in 2H08.
”As expected, mini-notebooks were one of the most sought-after items in the Christmas season, particularly in Western Europe, which represented over 80% of volumes,” said Eszter Morvay, research manager at IDC’s EMEA personal computing group. ”Driven by strong vendor and channel push, consumers benefited from the plethora of new models appearing on the shelves from October onwards, and the explosion in the product offering stimulated fierce competition for shelf space. Following in the footsteps of Asus, there are currently more than 50 vendors, from international players to local assemblers, with a mini-notebook offering across EMEA, which is clearly contributing to the ongoing buoyancy.”
The telco channel has also been playing a pivotal role in the development of the EMEA mini-notebook market. While telco operators have been looking at the notebook market for some time to drive new revenue sources, mini-notebooks offer a better fit in terms of value proposition — small and attractive products at lower price, therefore lower subsidy costs. Telco operators also offered additional exposure, which acted as a major accelerator of mini-notebook demand.
Vendor Highlights
Acer has made a strong push in the EMEA mini-notebook market since the Aspire One was launched in June. Although its primary focus is the retail channel, the vendor has also been working on building its presence in the telco channel, partnering with the likes of Phone House, T-Mobile, TIM, and TMN. In addition to the successful Aspire One series, Acer also launched the Packard Bell Dot in October 2008. However, focusing solely on the 8.9in. segment, the vendor is facing increasing competitive pressure from the growing success of 10in. mini-notebooks.
Asus maintained a key position in EMEA, boasting the largest and most complete product portfolio, and continued to play a pivotal role in the market from a branding standpoint. In 4Q08, Asus continued to enjoy strong demand for the Eee PC family and benefit from a large and expanding number of telco partnerships across EMEA, with SFR in France and TIM in Italy being the largest from a volume perspective.
Hewlett-Packard took third place in the EMEA mini-notebook market, helped by the launch of its first consumer mini-notebook, the Compaq Mini 700, in December. The commercial-focused HP2133 saw gradual uptake, due to the higher price and lack of retail presence, but it benefited from several telco deals across the region, including Bouygues, Cosmote, Elisa, and Mobistar.
Samsung was a newcomer to the mini-notebook market in 4Q08, launching the NC10 in October 2008. The product received excellent reviews and enjoyed rapid uptake across EMEA. In addition to strong retail demand, Samsung also benefited from several telco deals, including Phones 4u, T-Mobile, and Vodafone.
Dell introduced the Inspiron Mini in September 2008, launching it across most EMEA countries throughout 4Q08. The vendor continued to work with its key retail partners DSGi, Carrefour, and Tesco, while also benefiting from its EMEA-wide partnership with Vodafone.
Top 5 Vendors: EMEA Mini-Notebook Shipments, 4Q08
Vendor Units (000) % Market Share
1. Acer 1,095 30.3%
2. Asus 1,011 28.0%
3. HP 253 7.0%
4. Samsung 232 6.4%
5. Dell 156 4.3%
Others 864 23.9%
Total 3,610 100%
Source: IDC EMEA Quarterly PC Tracker, Final Results, 4Q08
Market Outlook
IDC expects sustained buoyancy in the EMEA mini-notebook market in the coming quarters, and robust double-digit growth in 2009. Strong vendor push will undoubtedly remain one of the key market drivers. Most vendors are working on expanding their product portfolios with increased distinction between entry-level, mainstream, and even higher-end models. Mini-notebooks will also continue to evolve both from a technology and design standpoint. The shift towards 10in. will continue and is expected to dominate the market in 2009, and we will see the first convertible models with touchscreens appear later this year.
Market dynamics will remain driven by consumer demand, but improving specifications, larger screens, and integrated 3G will make mini-notebooks more appealing to businesses as well. The education sector will be another growth opportunity in the long term. There are already several projects running in the U.K. and Russia, for example, and demand is expected to rise in an effort to promote one-to-one computing across the region.
IT and telco convergence will gain further momentum in 2009. Most vendors have already set up partnerships with key pan-European operators, and will continue to expand this year, targeting second- and third-tier operators in each country. The market will also see a shift from USB to integrated 3G, supported by the plethora of new models coming out with this functionality.
IDC believes the mini-notebook market will be a key growth opportunity in EMEA in 2009 amid the ongoing global economic recession, and will contribute to the sustained expansion of the EMEA portable PC market. However, mini-notebooks will continue to shake the industry from both a go-to-market and a pricing perspective. Mini-notebooks have proven that miniaturization does not have to cost a fortune, and will force vendors to rethink their ultraportable offerings and pricing. New initiatives from AMD, Intel, and Microsoft will also help the industry to reinvent ultraportables in a more affordable packaging.
The mini-notebook market is analyzed as part of IDC’s EMEA Quarterly PC Tracker program and a special report is also available. For more information on IDC’s EMEA Quarterly PC Tracker or other IDC personal computing research services, please contact Associate Vice President Karine Paoli (tel.: +44 [0] 20 8987 7218, email: kpaoli@idc.com). Alternatively, contact your local IDC office or visit www.idc.com.
March 13, 2009
IDC - Press Release
dotted lines
Mini-Notebooks Make Explosive Entry into EMEA PC Market in 2008, and Momentum Will Continue in 2009, Says IDC
16 Feb 2009
LONDON, February 16, 2009 — Following a major surge in the back-to-school season, mini-notebook momentum continued unabated in the final quarter of the year. Thanks to robust consumer demand in Western Europe in the run up to Christmas, overall EMEA mini-notebook shipments reached 3.6 million units, in line with expectations, representing 20% of total portable sales and 30% of consumer portables in EMEA in 4Q08.
For the full year 2008, mini-notebook shipments in EMEA reached close to 7 million units. Positioned as a secondary device for Internet-centric use and representing the first affordable ultraportables in the retail channel, mini-notebooks drove strong consumer momentum and resulted in a major sales boom in 2H08.
”As expected, mini-notebooks were one of the most sought-after items in the Christmas season, particularly in Western Europe, which represented over 80% of volumes,” said Eszter Morvay, research manager at IDC’s EMEA personal computing group. ”Driven by strong vendor and channel push, consumers benefited from the plethora of new models appearing on the shelves from October onwards, and the explosion in the product offering stimulated fierce competition for shelf space. Following in the footsteps of Asus, there are currently more than 50 vendors, from international players to local assemblers, with a mini-notebook offering across EMEA, which is clearly contributing to the ongoing buoyancy.”
The telco channel has also been playing a pivotal role in the development of the EMEA mini-notebook market. While telco operators have been looking at the notebook market for some time to drive new revenue sources, mini-notebooks offer a better fit in terms of value proposition — small and attractive products at lower price, therefore lower subsidy costs. Telco operators also offered additional exposure, which acted as a major accelerator of mini-notebook demand.
Vendor Highlights
Acer has made a strong push in the EMEA mini-notebook market since the Aspire One was launched in June. Although its primary focus is the retail channel, the vendor has also been working on building its presence in the telco channel, partnering with the likes of Phone House, T-Mobile, TIM, and TMN. In addition to the successful Aspire One series, Acer also launched the Packard Bell Dot in October 2008. However, focusing solely on the 8.9in. segment, the vendor is facing increasing competitive pressure from the growing success of 10in. mini-notebooks.
Asus maintained a key position in EMEA, boasting the largest and most complete product portfolio, and continued to play a pivotal role in the market from a branding standpoint. In 4Q08, Asus continued to enjoy strong demand for the Eee PC family and benefit from a large and expanding number of telco partnerships across EMEA, with SFR in France and TIM in Italy being the largest from a volume perspective.
Hewlett-Packard took third place in the EMEA mini-notebook market, helped by the launch of its first consumer mini-notebook, the Compaq Mini 700, in December. The commercial-focused HP2133 saw gradual uptake, due to the higher price and lack of retail presence, but it benefited from several telco deals across the region, including Bouygues, Cosmote, Elisa, and Mobistar.
Samsung was a newcomer to the mini-notebook market in 4Q08, launching the NC10 in October 2008. The product received excellent reviews and enjoyed rapid uptake across EMEA. In addition to strong retail demand, Samsung also benefited from several telco deals, including Phones 4u, T-Mobile, and Vodafone.
Dell introduced the Inspiron Mini in September 2008, launching it across most EMEA countries throughout 4Q08. The vendor continued to work with its key retail partners DSGi, Carrefour, and Tesco, while also benefiting from its EMEA-wide partnership with Vodafone.
Top 5 Vendors: EMEA Mini-Notebook Shipments, 4Q08
Vendor Units (000) % Market Share
1. Acer 1,095 30.3%
2. Asus 1,011 28.0%
3. HP 253 7.0%
4. Samsung 232 6.4%
5. Dell 156 4.3%
Others 864 23.9%
Total 3,610 100%
Source: IDC EMEA Quarterly PC Tracker, Final Results, 4Q08
Market Outlook
IDC expects sustained buoyancy in the EMEA mini-notebook market in the coming quarters, and robust double-digit growth in 2009. Strong vendor push will undoubtedly remain one of the key market drivers. Most vendors are working on expanding their product portfolios with increased distinction between entry-level, mainstream, and even higher-end models. Mini-notebooks will also continue to evolve both from a technology and design standpoint. The shift towards 10in. will continue and is expected to dominate the market in 2009, and we will see the first convertible models with touchscreens appear later this year.
Market dynamics will remain driven by consumer demand, but improving specifications, larger screens, and integrated 3G will make mini-notebooks more appealing to businesses as well. The education sector will be another growth opportunity in the long term. There are already several projects running in the U.K. and Russia, for example, and demand is expected to rise in an effort to promote one-to-one computing across the region.
IT and telco convergence will gain further momentum in 2009. Most vendors have already set up partnerships with key pan-European operators, and will continue to expand this year, targeting second- and third-tier operators in each country. The market will also see a shift from USB to integrated 3G, supported by the plethora of new models coming out with this functionality.
IDC believes the mini-notebook market will be a key growth opportunity in EMEA in 2009 amid the ongoing global economic recession, and will contribute to the sustained expansion of the EMEA portable PC market. However, mini-notebooks will continue to shake the industry from both a go-to-market and a pricing perspective. Mini-notebooks have proven that miniaturization does not have to cost a fortune, and will force vendors to rethink their ultraportable offerings and pricing. New initiatives from AMD, Intel, and Microsoft will also help the industry to reinvent ultraportables in a more affordable packaging.
The mini-notebook market is analyzed as part of IDC’s EMEA Quarterly PC Tracker program and a special report is also available. For more information on IDC’s EMEA Quarterly PC Tracker or other IDC personal computing research services, please contact Associate Vice President Karine Paoli (tel.: +44 [0] 20 8987 7218, email: kpaoli@idc.com). Alternatively, contact your local IDC office or visit www.idc.com.
Friday, March 13, 2009
Google boss backs subsidized Linuxbooks
Google boss backs subsidized Linuxbooks
http://www.theregister.co.uk/2009/03/04/schmidt_on_netbooks/
By Cade Metz in San Francisco • Get more from this author
Google CEO Eric Schmidt has hinted that his company - or at least its partners - will one day subsidize the purchase of extra-low-cost Linux netbooks in an effort to promote the use of its myriad cloud online services.
"What's particularly interesting about netbooks is the price point," Google's Willy Wonka told a room full of financial types this afternoon at the Morgan Stanley Technology Conference in downtown San Francisco. "Eventually, it will make sense for operators and so forth to subsidize the use of netbooks so they can make services revenue and advertising revenue on the consumption. That's another new model that's coming."
Schmidt called netbooks the "next generation" of the low-cost machines produced by Nicholas Negroponte's One Laptop Per Child (OLPC) initiative. "Products today are not completely done. Things are missing. It's perfectly possible that operating systems that are Linux-based will become a significant player in that space, whereas they have historically not been a significant player in the PC space."
In other words, Schmidt believes the US is going back to the future. The subsidized-PC model famously failed in the late 90s and early aughts, with outfits like PeoplePC and emachines. In the UK, mobile operators are already offering free laptops with wireless contracts.
If Google taps into this plan, you'd have to assume that Googlicious netbooks will be sold by someone other than Google. As the company has shown with its open-source Android mobile stack, Google prefers to keep the direct-sales biz at arm's length.
Developers have often said that Android is already well-suited to netbooks as well as mobile handheld devices. And rumor has it that motherboard-maker ASUS is already hard at work on an Android-based netbook, set for release at the end of this year or early 2010.
Such devices could rule the world, Schmidt said, because cloud online apps are the future. "Cloud computing is one of those changes that are going to happen - regardless of whether or not companies in the ecosystem want it to," he said. "IT systems today are so slow in the way that they evolve...We now have an opportunity to build a whole new generation of applications that cycle much faster."
Just as predictably, Schmidt began his Morgan Stanley Q&A by insisting that Google's search monopoly could vanish at any moment. He pointed to a recent snafu where Google's search engine blocked access to the entire internet.
"We had a bug recently where we put a malware statement out for users, and in that time, Yahoo! searches gained very, very quickly," he said. "It looks like people will move very quickly from one search engine to another, for any number of reasons. We've looked at this very carefully."
But even a cursory examination would show that Google's February snafu knocked out its search engine for less an hour - and that it promptly reclaimed over 60 per cent of the market.
In Google's mind, Google is not a monopoly - but Microsoft certainly is. When asked whether he was at all concerned about a possible search tie-up between Yahoo! and Microsoft, Schmidt said "The problem has to do with Microsoft's ability to use its Windows monopoly to restrict a user's fair choice...Anything that Microsoft would do that would eliminate user choice with respect to the way search engines and internet browsers are distributed - for which it was previously found guilty - would be of concern."
But at one point during his chat - which was broadcast live over the net, but was not open to reporters - Schmidt's typically extreme Google arrogance subsided. At least a tad. In recent months, Google has all but called itself Meltdown-proof. But today he hedged those claims.
"I don't need to talk to this audience about the state of the global economy. The situation is pretty dire," he said. "During this time, what's happening is that people are using the internet more. But it obviously will affect the online advertising markets as well - simply because our systems are so tightly tuned that if customers are buying less it will eventually be reflected in [cost per advertising click]...
"We are not immune - 'we' Google and 'we' the online-advertising industry. But we may be better positioned than other advertisers."
Google's ad system isn't as "tightly tuned" as Schmidt would indicate. And in the fourth quarter, the company pumped its revenues a cool 18 per cent. But perhaps he's hinting that Q1 isn't going quite as well as the company might like.
After conversations with countless "CEOs and customers," Schmidt predicts that the global recession won't subside until 2010. But when it does, he says, Americans will still be Americans. "What we have to do in our country in solve the credit problem. We have to get the job situation at least stable. And we have to do something about the housing crisis," he said. "All of those things are being worked on now. When those things are done, it's a reasonable bet that Americans will go back to what they do best, which is spend money."
http://www.theregister.co.uk/2009/03/04/schmidt_on_netbooks/
By Cade Metz in San Francisco • Get more from this author
Google CEO Eric Schmidt has hinted that his company - or at least its partners - will one day subsidize the purchase of extra-low-cost Linux netbooks in an effort to promote the use of its myriad cloud online services.
"What's particularly interesting about netbooks is the price point," Google's Willy Wonka told a room full of financial types this afternoon at the Morgan Stanley Technology Conference in downtown San Francisco. "Eventually, it will make sense for operators and so forth to subsidize the use of netbooks so they can make services revenue and advertising revenue on the consumption. That's another new model that's coming."
Schmidt called netbooks the "next generation" of the low-cost machines produced by Nicholas Negroponte's One Laptop Per Child (OLPC) initiative. "Products today are not completely done. Things are missing. It's perfectly possible that operating systems that are Linux-based will become a significant player in that space, whereas they have historically not been a significant player in the PC space."
In other words, Schmidt believes the US is going back to the future. The subsidized-PC model famously failed in the late 90s and early aughts, with outfits like PeoplePC and emachines. In the UK, mobile operators are already offering free laptops with wireless contracts.
If Google taps into this plan, you'd have to assume that Googlicious netbooks will be sold by someone other than Google. As the company has shown with its open-source Android mobile stack, Google prefers to keep the direct-sales biz at arm's length.
Developers have often said that Android is already well-suited to netbooks as well as mobile handheld devices. And rumor has it that motherboard-maker ASUS is already hard at work on an Android-based netbook, set for release at the end of this year or early 2010.
Such devices could rule the world, Schmidt said, because cloud online apps are the future. "Cloud computing is one of those changes that are going to happen - regardless of whether or not companies in the ecosystem want it to," he said. "IT systems today are so slow in the way that they evolve...We now have an opportunity to build a whole new generation of applications that cycle much faster."
Just as predictably, Schmidt began his Morgan Stanley Q&A by insisting that Google's search monopoly could vanish at any moment. He pointed to a recent snafu where Google's search engine blocked access to the entire internet.
"We had a bug recently where we put a malware statement out for users, and in that time, Yahoo! searches gained very, very quickly," he said. "It looks like people will move very quickly from one search engine to another, for any number of reasons. We've looked at this very carefully."
But even a cursory examination would show that Google's February snafu knocked out its search engine for less an hour - and that it promptly reclaimed over 60 per cent of the market.
In Google's mind, Google is not a monopoly - but Microsoft certainly is. When asked whether he was at all concerned about a possible search tie-up between Yahoo! and Microsoft, Schmidt said "The problem has to do with Microsoft's ability to use its Windows monopoly to restrict a user's fair choice...Anything that Microsoft would do that would eliminate user choice with respect to the way search engines and internet browsers are distributed - for which it was previously found guilty - would be of concern."
But at one point during his chat - which was broadcast live over the net, but was not open to reporters - Schmidt's typically extreme Google arrogance subsided. At least a tad. In recent months, Google has all but called itself Meltdown-proof. But today he hedged those claims.
"I don't need to talk to this audience about the state of the global economy. The situation is pretty dire," he said. "During this time, what's happening is that people are using the internet more. But it obviously will affect the online advertising markets as well - simply because our systems are so tightly tuned that if customers are buying less it will eventually be reflected in [cost per advertising click]...
"We are not immune - 'we' Google and 'we' the online-advertising industry. But we may be better positioned than other advertisers."
Google's ad system isn't as "tightly tuned" as Schmidt would indicate. And in the fourth quarter, the company pumped its revenues a cool 18 per cent. But perhaps he's hinting that Q1 isn't going quite as well as the company might like.
After conversations with countless "CEOs and customers," Schmidt predicts that the global recession won't subside until 2010. But when it does, he says, Americans will still be Americans. "What we have to do in our country in solve the credit problem. We have to get the job situation at least stable. And we have to do something about the housing crisis," he said. "All of those things are being worked on now. When those things are done, it's a reasonable bet that Americans will go back to what they do best, which is spend money."
Whither Windows? OLPC 2 likely to use ARM, not x86
Whither Windows? OLPC 2 likely to use ARM, not x86
http://arstechnica.com/gadgets/news/2009/03/olpc-project-to-adopt-arm-processors.ars
OLPC founder Nicholas Negroponte has revealed that the project could switch to ARM processors for its next-gen XO laptop. This move is odd in light of the organization's increasingly Microsoft-centric software strategy, but Negroponte says he is hopeful that Microsoft will port Windows XP to ARM.
By Ryan Paul | Last updated March 13, 2009 9:37 AM CT
Whither Windows? OLPC 2 likely to use ARM, not x86
The One Laptop Per Child (OLPC) project, which seeks to produce low-cost laptops for education, revealed on Thursday that it might drop the aging AMD Geode processor it has been using and replace it with ARM chips in its next-generation mobile computing device.
OLPC, which emerged from the MIT media lab and was founded by Nicholas Negroponte, has been plagued by an endless stream of technical problems and logistical blunders. The cost of the hardware, which was originally targeted at an ambitious $100, has climbed by 88 percent. The software platform strategy has totally disintegrated, leading to significant friction within the organization. Key figures have left in frustration and have vocally criticized Negroponte for taking actions that conflict with OLPC's stated goals.
In January, OLPC downsized half of its staff and largely discontinued its involvement in the development of the Sugar software framework—an education-oriented software environment built with open source technologies that is designed to run on the Linux operating system. Negroponte says that the cuts were needed because the organization's large corporate sponsors are closing their wallets in the current economic climate. In addition, the second Give 1 Get 1 program, a major source of funding for the project, fell flat and generated only a fraction of the revenue that was produced by the problematic first attempt.
OLPC could simply not afford to continue without major cuts and a serious change in strategy. Negroponte attempted to reorganize the group and shifted the focus away from large-scale distribution. The new approach is to produce hardware designs that can be manufactured and brought to market by commercial partners. This approach is similar to the one that Intel has pursued with its Classmate PC, which has already shipped to students in greater number than the OLPC XO laptop.
OLPC says that they intend to use ARM processors for their next-generation hardware because the ARM chips will use less power and could potentially deliver better performance than the aging AMD Geode that runs the current OLPC model. This seems like a reasonable move in principle, but it makes little sense when viewed in the context of the organization's software strategy—though it's hard to tell what the software strategy is even supposed to be anymore.
When OLPC began building closer ties with Microsoft and publicly criticizing Linux in press interviews, concerns were expressed by OLPC members that Negroponte might be preparing to abandon Sugar. He vigorously denied it and claimed that OLPC was planning to significantly increase its commitment to Sugar. Only months later, he reversed this position when he ended OLPC's involvement in Sugar development and turned it over to the community. Ongoing Sugar development is handled by Sugar Labs, which is run by former OLPC president Walter Bender.
The problem with moving to ARM is that Windows XP, which OLPC has increasingly been warming up to, won't run on it at all. Even the existing, Fedora-based Sugar platform would probably require some tweaking. Fedora's ARM port is promising, but still somewhat experimental. I suspect that the Fedora ARM port is mature enough that it could be adapted to meet OLPC's needs within a reasonable timeframe (an alternate approach would be to make Sugar and OLPC's software customizations work well on Canonical's officially supported ARM port of Ubuntu), but that would still require at least some software engineering. It's unclear if Sugar Labs is in a position to handle that kind of development at this stage.
Negroponte seems convinced that a Windows port for ARM would be advantageous to the project. Microsoft might have an incentive to port XP to ARM in order to prevent Linux from gaining ground on the inevitable commercial ARM-based netbooks, but it seems more likely that Microsoft would rather invest in moving forward with Windows Mobile for that market. Microsoft seems to have a clearly defined roadmap for Windows Mobile 6.5 and 7, but Negroponte isn't crazy about the idea of using Windows Mobile for his device.
"Like many, we are urging Microsoft to make Windows—not Windows Mobile—available on the Arm. This is a complex question for them," Negroponte told IDG.
Some pundits are speculating that Google's Linux-based Android platform could potentially be an option for an ARM-based OLPC device. Although Android could probably be made to run on the hardware, it really doesn't seem like a feasible choice. As Google's engineers have pointed out, Android uses the Linux kernel but is fundamentally not a Linux platform.
The Android stack doesn't support Xorg and is not capable of running conventional desktop Linux software. It's absolutely not equipped to accommodate Sugar (which is built with Python and GTK+) and there is no conceivable glide path for making such a port.
The hardware plans—a device with a dual-touchscreen interface and an extremely low-power ARM chip—are intriguing. I think that a device of that nature could have a lot of practical value if it's designed well. However, the general lack of direction at OLPC, the lack of staffing, the lack of resources, and the lack of a successful track record don't really bode well. The fact that Negroponte is publicly begging Microsoft for a Windows ARM port also adds to my skepticism.
The entire effort appears to have been in a steady downward spiral during the past year, and the potential for recovery looks slim. The latest revelation—an unplanned architecture change without any clearly articulated software strategy—seems to further erode the odds of success.
http://arstechnica.com/gadgets/news/2009/03/olpc-project-to-adopt-arm-processors.ars
OLPC founder Nicholas Negroponte has revealed that the project could switch to ARM processors for its next-gen XO laptop. This move is odd in light of the organization's increasingly Microsoft-centric software strategy, but Negroponte says he is hopeful that Microsoft will port Windows XP to ARM.
By Ryan Paul | Last updated March 13, 2009 9:37 AM CT
Whither Windows? OLPC 2 likely to use ARM, not x86
The One Laptop Per Child (OLPC) project, which seeks to produce low-cost laptops for education, revealed on Thursday that it might drop the aging AMD Geode processor it has been using and replace it with ARM chips in its next-generation mobile computing device.
OLPC, which emerged from the MIT media lab and was founded by Nicholas Negroponte, has been plagued by an endless stream of technical problems and logistical blunders. The cost of the hardware, which was originally targeted at an ambitious $100, has climbed by 88 percent. The software platform strategy has totally disintegrated, leading to significant friction within the organization. Key figures have left in frustration and have vocally criticized Negroponte for taking actions that conflict with OLPC's stated goals.
In January, OLPC downsized half of its staff and largely discontinued its involvement in the development of the Sugar software framework—an education-oriented software environment built with open source technologies that is designed to run on the Linux operating system. Negroponte says that the cuts were needed because the organization's large corporate sponsors are closing their wallets in the current economic climate. In addition, the second Give 1 Get 1 program, a major source of funding for the project, fell flat and generated only a fraction of the revenue that was produced by the problematic first attempt.
OLPC could simply not afford to continue without major cuts and a serious change in strategy. Negroponte attempted to reorganize the group and shifted the focus away from large-scale distribution. The new approach is to produce hardware designs that can be manufactured and brought to market by commercial partners. This approach is similar to the one that Intel has pursued with its Classmate PC, which has already shipped to students in greater number than the OLPC XO laptop.
OLPC says that they intend to use ARM processors for their next-generation hardware because the ARM chips will use less power and could potentially deliver better performance than the aging AMD Geode that runs the current OLPC model. This seems like a reasonable move in principle, but it makes little sense when viewed in the context of the organization's software strategy—though it's hard to tell what the software strategy is even supposed to be anymore.
When OLPC began building closer ties with Microsoft and publicly criticizing Linux in press interviews, concerns were expressed by OLPC members that Negroponte might be preparing to abandon Sugar. He vigorously denied it and claimed that OLPC was planning to significantly increase its commitment to Sugar. Only months later, he reversed this position when he ended OLPC's involvement in Sugar development and turned it over to the community. Ongoing Sugar development is handled by Sugar Labs, which is run by former OLPC president Walter Bender.
The problem with moving to ARM is that Windows XP, which OLPC has increasingly been warming up to, won't run on it at all. Even the existing, Fedora-based Sugar platform would probably require some tweaking. Fedora's ARM port is promising, but still somewhat experimental. I suspect that the Fedora ARM port is mature enough that it could be adapted to meet OLPC's needs within a reasonable timeframe (an alternate approach would be to make Sugar and OLPC's software customizations work well on Canonical's officially supported ARM port of Ubuntu), but that would still require at least some software engineering. It's unclear if Sugar Labs is in a position to handle that kind of development at this stage.
Negroponte seems convinced that a Windows port for ARM would be advantageous to the project. Microsoft might have an incentive to port XP to ARM in order to prevent Linux from gaining ground on the inevitable commercial ARM-based netbooks, but it seems more likely that Microsoft would rather invest in moving forward with Windows Mobile for that market. Microsoft seems to have a clearly defined roadmap for Windows Mobile 6.5 and 7, but Negroponte isn't crazy about the idea of using Windows Mobile for his device.
"Like many, we are urging Microsoft to make Windows—not Windows Mobile—available on the Arm. This is a complex question for them," Negroponte told IDG.
Some pundits are speculating that Google's Linux-based Android platform could potentially be an option for an ARM-based OLPC device. Although Android could probably be made to run on the hardware, it really doesn't seem like a feasible choice. As Google's engineers have pointed out, Android uses the Linux kernel but is fundamentally not a Linux platform.
The Android stack doesn't support Xorg and is not capable of running conventional desktop Linux software. It's absolutely not equipped to accommodate Sugar (which is built with Python and GTK+) and there is no conceivable glide path for making such a port.
The hardware plans—a device with a dual-touchscreen interface and an extremely low-power ARM chip—are intriguing. I think that a device of that nature could have a lot of practical value if it's designed well. However, the general lack of direction at OLPC, the lack of staffing, the lack of resources, and the lack of a successful track record don't really bode well. The fact that Negroponte is publicly begging Microsoft for a Windows ARM port also adds to my skepticism.
The entire effort appears to have been in a steady downward spiral during the past year, and the potential for recovery looks slim. The latest revelation—an unplanned architecture change without any clearly articulated software strategy—seems to further erode the odds of success.
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