The netbook is keeping the computer hardware business humming, after ASUS invented the category 1.5 years go. It is remarkable that a company that specializes in assembling computers for others was able to come up with a winning formula after software monopolist Microsoft failed when it defined a similar, yet pointless device, the UMPC -- short for ultra mobile personal computer.
What sunk the UMPC was (1) it's price and (2) its touchscreen orientation. You may recall an earlier reference design by Microsoft that also sunk for the same two reasons: the TabletPC.
Knowing how Microsoft thinks, the initially high target price (roughly $2000) was deliberate. With it, Microsoft was able to fool hardware vendors to go along with their plan to ship more Windows and Offices -- develop and sell expensive hardware to consumers who would fall over themselves to buy it.
Problem is that Microsoft's monopoly is the reason Apple-priced hardware doesn't sell well in Windows' World. Competition between the HPs, Dells, and Toshibas of the world ensures that prices headed to the $500 level. Apple has seen the mistake made by Microsoft, and so keeps a local monopoly on its OS and its hardware.
Never one to have an original thought, Microsoft attempted the same among music players, cutting off its PlayForSure "partners" in order to create a monopolized music delivery and hardware system. But for its efforts (I won't use the word "backstabbing" here), it has a smaller marketshare than does Apple in PCs.
Comments