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PC Makers See Big Trouble in Smaller 'Netbooks'

Web-focused computers, starting at $300, yield little profit, may forecast trend

By Jim O'Neill,  Newser User

Posted Jul 21, 2008 11:22 AM CDT
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(Newser) – Smaller and lighter than most textbooks, “netbooks”—the latest generation of computers used for light computing and surfing the web—are causing heartburn among PC manufacturers who see the low-cost innovation as a threat to already-slim profit margins, the New York Times reports. Perhaps more worrisome to giants like Microsoft and Dell is that the trend could signal a major industry shift.

The upstarts are challenging the notion that consumers prefer their machines come with built-in computing power rather than use what’s available online via so-called cloud computing. One Silicon Valley startup is launching a $300 “net-top,” offering basic functions while using a fraction of the electricity, and at a fraction of the size, of traditional desktops.

New Acer Aspire one netbook, an all-new communication device designed to make online activities fast, simple and cool.
New Acer Aspire one netbook, an all-new communication device designed to make online activities fast, simple and cool.   (Business Wire)
Low-cost, scaled-down netbooks are used primarily for surfing the Internet and performing other basic functions like word processing.
Low-cost, scaled-down "netbooks" are used primarily for surfing the Internet and performing other basic functions like word processing.   (AP Photo)
At slightly more than 2.5 pounds, the HP Mini is smaller and lighter than many math or science books.
At slightly more than 2.5 pounds, the HP Mini is smaller and lighter than many math or science books.   (AP Photo)
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Just what is a 'netbook?'
Wikipedia

Netbooks are the wave of the futureâ??today
Manila Standard

 
Acer • Dell Inc • Netbooks • computer hardware • Hewlett-Packard

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