SAN FRANCISCO (AP) - One more of the world's biggest technology
companies is clamoring to enter the growing market for pint-sized
computers targeted mainly for pint-sized customers. Hewlett-Packard
Co., the No. 1 seller of personal computers worldwide, said Tuesday
it's throwing its weight behind a new class of miniaturized laptops, a
fledgling market already populated with products from Intel Corp., the
world's largest semiconductor company, and Asustek Computers Inc., the
world's largest maker of computer motherboards.
The machines are so new the industry hasn't settled on a name for
low-cost and scaled-down laptops used primarily for surfing the
Internet and performing other basic functions like word processing.
Intel has labeled them "netbooks," and it expects more than 50 million netbooks to be in circulation by 2011.
HP executives say their new machines, which go on sale later this
month, are an important piece of the Palo Alto-based company's effort
to build market share in schools, where machines had to be smaller and
cheaper without losing too many functions.
The companies also expect adults to cotton to the idea of buying two
laptops _ a lightweight one just for Web browsing on the go and the
full-power machine for the home or office. But industry executives
acknowledge that the market is untested and that no one knows what
demand will be once the machines are deployed widely.
HP's foray comes in the form of a new computer called a "Mini-Note"
that weighs less than 3 pounds with a screen that measures 8.9 inches
diagonally. The machines start at under $500 for a Linux-based model.
Prices go up for Windows Vista models with faster processors.
The processors HP is using are made by Via Technologies Inc., the
distant third-ranked player in the microprocessor space, and come in
clock speeds up to 1.6 gigahertz. The inclusion is a big win for Via,
which trails Intel and Advanced Micro Devices Inc. by a wide margin in
the microprocessor market.
HP executives say the only major feature its Mini-Note lacks is an
optical drive for ingesting DVDs and CD-ROMs, which can be bought
separately. But they say many schools requested the drives be left out
to prevent students from playing unauthorized games.
The Mini-Note will compete primarily with Intel's Classmate PCs _
which are designed by Intel and feature Intel chips but are built and
branded by other companies _ and Asustek's Eee PC.
To a lesser extent, they also will go up against the XO laptop from
the Cambridge, Mass., nonprofit One Laptop per Child, which is intended
primarily for schoolchildren in developing countries.
Intel says it has sold "tens of thousands" of Classmate PCs since
they went on sale last year. And OLPC says it has sold hundreds of
thousands of the XO. Figures were not immediately available for sales
of the Eee.