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Intel Discovers Capitalism

 
 
Lawrence D'Oliveiro
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      03-20-2008
Oh look
<http://arstechnica.com/news.ars/post/20080320-classmate-pc-rated-e-for-everyone-intel-to-sell-to-public.html>,
Intel has finally realized that its Classmate PC isn't just suitable for
third-world markets, there might actually be a tidy profit in offering it
to first-world customers as well.

All I can say is, it had better hurry. Others have already worked out that
the Asus Eee has had this segment to itself for too long, and are bringing
competitors to market (Everex, HP, Shuttle, MSI etc). I have a feeling it's
going to get a bit crowded...
 
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thingy
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      03-20-2008
Lawrence D'Oliveiro wrote:
> Oh look
> <http://arstechnica.com/news.ars/post/20080320-classmate-pc-rated-e-for-everyone-intel-to-sell-to-public.html>,
> Intel has finally realized that its Classmate PC isn't just suitable for
> third-world markets, there might actually be a tidy profit in offering it
> to first-world customers as well.
>
> All I can say is, it had better hurry. Others have already worked out that
> the Asus Eee has had this segment to itself for too long, and are bringing
> competitors to market (Everex, HP, Shuttle, MSI etc). I have a feeling it's
> going to get a bit crowded...


Considering I think the EEE is overpriced, yes (but then Im not in the
market for a handy sub-laptop)...in saying that its predecessors like
tablets etc were way over priced, fragile and too limited....If I was a
Linux support guy wandering about Wellington (and especially if on call)
I'd buy one...though a USB key with VMware's ACE on it is even smaller.

So some competition might see some keener prices, it will be interesting
to see how the Linux powered ones stand up to the Windows ones...$50 or
even $30 for a OEM of XP/Vista...CE? adds a lot to a $500 unit.....not
to mention the bigger need for ram and "hd" just to boot.

regards

Thing




 
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Lawrence D'Oliveiro
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      03-21-2008
In article <frul91$n6i$(E-Mail Removed)>, Lawrence D'Oliveiro did write:

> Others have already worked out that
> the Asus Eee has had this segment to itself for too long, and are bringing
> competitors to market (Everex, HP, Shuttle, MSI etc). I have a feeling
> it's going to get a bit crowded...


Another one joining the fun: ECS
<http://www.reghardware.co.uk/2008/03/20/ecs_spills_g10il_beans/>.
 
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whoisthis
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      03-21-2008
In article <frul91$n6i$(E-Mail Removed)>,
Lawrence D'Oliveiro <(E-Mail Removed)_zealand> wrote:

> Oh look
> <http://arstechnica.com/news.ars/post...d-e-for-everyo
> ne-intel-to-sell-to-public.html>,
> Intel has finally realized that its Classmate PC isn't just suitable for
> third-world markets, there might actually be a tidy profit in offering it
> to first-world customers as well.
>
> All I can say is, it had better hurry. Others have already worked out that
> the Asus Eee has had this segment to itself for too long, and are bringing
> competitors to market (Everex, HP, Shuttle, MSI etc). I have a feeling it's
> going to get a bit crowded...


A rush to cheap, low (no?) profit hardware will not last long.
Apple has captured 14% of the hardware market by volume but 25% by $
value.
Come the recession they have about US$20 billion to ride it out, that is
the whole point of profit.

History is littered with the corpses of failed computer companies, some
used to be household names, anyone remember Sinclair ?
 
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Lawrence D'Oliveiro
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      03-21-2008
In article <(E-Mail Removed)>, whoisthis did
write:

> In article <frul91$n6i$(E-Mail Removed)>,
> Lawrence D'Oliveiro <(E-Mail Removed)_zealand> wrote:
>
>> Others have already worked out
>> that the Asus Eee has had this segment to itself for too long, and are
>> bringing competitors to market (Everex, HP, Shuttle, MSI etc). I have a
>> feeling it's going to get a bit crowded...

>
> A rush to cheap, low (no?) profit hardware will not last long.


I think Asus, for one, is making a nice profit on its Eee machines--they are
well-made products after all, not cheap-feeling in any way. Which is why so
many competitors are scrambling to join in the fun.

The only company likely to lose (both money and market share) out of this
shift is Microsoft. Oh, and possibly...

> Apple has captured 14% of the hardware market by volume but 25% by $
> value.


That's US-only. Worldwide they're still stuck at around 3%. And they have no
product to compete in this fast-growing category.

> Come the recession they have about US$20 billion to ride it out, that is
> the whole point of profit.


Apple were highly profitable in the early 1990s, too, even as they were
losing market share.

> History is littered with the corpses of failed computer companies, some
> used to be household names, anyone remember Sinclair ?


Or the G4 Cube?
 
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thingy
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      03-21-2008
whoisthis wrote:
> In article <frul91$n6i$(E-Mail Removed)>,
> Lawrence D'Oliveiro <(E-Mail Removed)_zealand> wrote:
>
>> Oh look
>> <http://arstechnica.com/news.ars/post...d-e-for-everyo
>> ne-intel-to-sell-to-public.html>,
>> Intel has finally realized that its Classmate PC isn't just suitable for
>> third-world markets, there might actually be a tidy profit in offering it
>> to first-world customers as well.
>>
>> All I can say is, it had better hurry. Others have already worked out that
>> the Asus Eee has had this segment to itself for too long, and are bringing
>> competitors to market (Everex, HP, Shuttle, MSI etc). I have a feeling it's
>> going to get a bit crowded...

>
> A rush to cheap, low (no?) profit hardware will not last long.
> Apple has captured 14% of the hardware market by volume but 25% by $
> value.
> Come the recession they have about US$20 billion to ride it out, that is
> the whole point of profit.
>
> History is littered with the corpses of failed computer companies, some
> used to be household names, anyone remember Sinclair ?


Sinclair was never really a business corporation, it really sold
consumer items...Amstrad might be better or,

Data General, Dec, Wang....all names of the past, big corporations that
died...what does this say about MS, Sun, Oracle as OSS equiv's come up?

MS did well because it was dirt cheap compared to Unix Risc, OS2 and
mainframes, now how ever it isn't the cheapest kid on the block....

As for the rush to low cost hardware, IT is becoming commoditised, just
like buying apples or steak, its sell volume and small margin. Yes Apple
has a business but boutiques usually can sell small volumes at big
margins. If the niche goes though....bye bye very quickly...

regards

Thing







 
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Lawrence D'Oliveiro
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      03-21-2008
In article <47e311ce$(E-Mail Removed)>, thingy did write:

> Data General, Dec, Wang....all names of the past, big corporations that
> died...what does this say about MS, Sun, Oracle as OSS equiv's come up?


Those were minicomputer companies, that carved out a market by undercutting
the low-volume, high-margin mainframes. Only to be undercut themselves by
the high-volume, low-margin PCs.

> MS did well because it was dirt cheap compared to Unix Risc, OS2 and
> mainframes, now how ever it isn't the cheapest kid on the block....


Microsoft has grown fat on volume. But in the same way the computer market
originaly diversified into mainframes, minis, supercomputers, PCs,
workstations etc, the PC market (which rendered most of the others extinct)
is itself diversifying now, and Microsoft is having trouble adapting.

> As for the rush to low cost hardware, IT is becoming commoditised, just
> like buying apples or steak, its sell volume and small margin. Yes Apple
> has a business but boutiques usually can sell small volumes at big
> margins. If the niche goes though....bye bye very quickly...


High volumes and low margins have been dominant in the PC hardware market
for close to two decades now--that's not new. What's new is that prices
have reached the point where software costs are becoming the largest item
on the bill of materials. In other words, software margins now have to go.
Hard to believe that Microsoft have been able to sustain a high-volume,
high-margin business model for so long, but those days are drawing to a
close.
 
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Lawrence D'Oliveiro
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      03-21-2008
Review <http://linuxdevices.com/articles/AT6425549202.html> of two more
machines, the Zonbook and the Everex Cloudbook. The former is a
conventionally-sized laptop, where you pay a subscription and the vendor
ensures that everything just works. The latter is more directly a
competitor in the Eee/Classmate category.
 
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Gordon
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      03-21-2008
On 2008-03-21, whoisthis <(E-Mail Removed)> wrote:
> In article <frul91$n6i$(E-Mail Removed)>,
> Lawrence D'Oliveiro <(E-Mail Removed)_zealand> wrote:
>
>> Oh look
>> <http://arstechnica.com/news.ars/post...d-e-for-everyo
>> ne-intel-to-sell-to-public.html>,
>> Intel has finally realized that its Classmate PC isn't just suitable for
>> third-world markets, there might actually be a tidy profit in offering it
>> to first-world customers as well.
>>
>> All I can say is, it had better hurry. Others have already worked out that
>> the Asus Eee has had this segment to itself for too long, and are bringing
>> competitors to market (Everex, HP, Shuttle, MSI etc). I have a feeling it's
>> going to get a bit crowded...

>
> A rush to cheap, low (no?) profit hardware will not last long.
> Apple has captured 14% of the hardware market by volume but 25% by $
> value.


I would say by spin, and human nature.

> Come the recession they have about US$20 billion to ride it out, that is
> the whole point of profit.


well I'll be darned. Never thought of this idea before. I thought profit was
to ensure that the company did not go bust.

>
> History is littered with the corpses of failed computer companies, some
> used to be household names, anyone remember Sinclair ?


So, you your point is? Apple is going to join them
 
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Lawrence D'Oliveiro
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      03-21-2008
In article <(E-Mail Removed)>, Gordon did write:

> I thought profit was to ensure that the company did not go bust.


Really? I thought profit was to repay the investors for their investment.
 
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