The case for a netbook at Macworld
TBR's Ezra Gottheil issued a remarkably detailed description Tuesday afternoon of the "inexpensive mobile device" he believes Apple (AAPL) will announce at MacWorld on Jan. 6 for delivery mid-year.
"It will come in two sizes," he writes, "one much like the MacBook Air and one similar to a netbook, with the smaller unit priced at $599."
Almost as if he had seen the specs, Gottheil ticks off the benefits the new device offers the user:
- It will provide web access, e-mail, media playing, and essential applications at a single low price.
- Computer beginners will be able to start using it quickly and easily. Users will have fewer questions, problems, conflicts and security breaches, as the device will be less intimidating than both PCs and Macs.
- As with the iPhone, iTunes and the App Store will offer an array of content, applications and games.
- As with the iPhone, the software can be rebuilt from the App Store. With an optional online backup service, the entire device can be restored. Under a more expensive support plan, Apple will be able to send the customer a replacement functional device if theirs is stolen or physically damaged.
There are also several benefits for Apple:
- It will open up new markets, including emerging economies, price-sensitive consumers, and those for whom all PCs, including Macs, are too complicated.
- Because all applications are delivered through the iTunes App Store, Apple will maintain sustained relationships with users, making it easier to upsell and cross-sell to existing customers. TBR believes Apple will make online services like MobileMe increasingly attractive to all customers, but purchasers of the new Apple device may find its simplicity especially appealing.
- The device will provide yet another entry point into the Apple digital hub family of products.
- Apple will be able to sell the captive peripherals that work with the device.
Moreover, the thing will give Apple entree into the most price-sensitive markets — an important consideration in the middle of a recession — with, as Gottheil sees it, only minimal risk of cannibalization of MacBook sales.
Of course, as John Paczkowski of AllThingsD reminds us, Steve Jobs pooh- poohed the whole netbook idea last October, and famously added:
"We don’t know how to make a $500 computer that’s not a piece of junk, and our DNA will not let us ship that." (link)
But Gottheil's device, conveniently enough, starts at $599, giving Jobs just enough leeway not to have to eat his words.
We were intrigued, so we called Gottheil and asked for the source of his information.
"I made it up," he said, with remarkable candor.
"I have no spies or internal information. It's triangulated. It's logical. It fits with what they're trying to do. And it solves a lot of problems for them."
And it gives us something to talk about, three weeks before the Macworld keynote.
There is some truth to captbilly's statements. Apple has not developed "revolutionary" technology. What Apple is good at doing is developing products that captivate the public. I'm sure that there are phones that are much more capable than the iPhone, but they're not iPhones.
It really comes down to preference. Do you prefer pure function, or the art and form of performing that function.
captbilly: "My son could do more on the cell phone he got a year before the Iphone was released then he could on the Iphone"
Like what, for example? I can't think of anything.
…as an engineer I do understand that none of their products are in any way revolutionary.
captbilly = clueless
I wish I could get all the free advertising I want every time I came out with a new product. I have nothing against Apple, but as an engineer I do understand that none of their products are in any way revolutionary. In most cases (Ipod, Iphone, computers) there were as good or better products available before the Apple product was developed. My son could do more on the cell phone he got a year before the Iphone was released then he could on the Iphone he finally bought and quickly sold a year later.
What is it about the media and Apple? Is there something about how the products look that causes people to simply ignore the underlying technology? Again, I am not saying that I dislike Apple products, they are fine, it's just that they are not good enough to justify all the hoopla that seems to ensue every time they come out with their latest stuff.
@jimmx – your comment is nonsense! Apple does not need to come in lower at a $449. Where do you get this crap? Apple always has a great value proposition that allows it to charge more – that is superior OS, features, reliability, ease of use, etc. etc. They DO NOT need to race to the bottom like the other fools out there are doing.
"I made it up" describes the entire idiot-blogger universe. Any journalist, blogger, commentator, pundit, who's assertions don't have big cash on the line are garbage.
It sounds like a netbook version of the ipod touch with slightly expanded capabilities. That's not a far stretch, and the $599 price could be justified if the device has a touchscreen and/or 32GB flashdrive.
Hooie!
At $599 it both fails to compete with the netbooks, and would be cannibalized by the bottom end MacBook at $999.
Needs a price point of $449. If they can make a Touch @$229, they can make a Touch Grande – 6 to 9 inch screen – for $449. That is still far above the base price for Linux netbooks.
But I think they will have a scaled down version of Snow Leopard in there. Probably running on their own chips w/ Nvidia integrated gpu (maybe they will license the gpu design and build it into their chip.)
The argument in favor of a netbook is that they need to. The netbooks are currently the most popular items in Amazon. But they need to get in where they can compete, and starting at 2X price point is too high.
That sort of product makes even more sense if there is a companion product with a phone and 3G connectivity included.
Apple hit a home run when they brought out the iPod Touch. By sharing parts and engineering with the iPhone they had two products with shared costs and many similar features.
I agree that the $699 NetBook is a logical product for Apple to introduce. I can also envision a different version with a slot for stowing a Bluetooth Headset, 3G Connectivity, and iPhone functionality. This version would be sold as an alternative to the iPhone with real computer capabilities.
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