Intel (NASDAQ: INTC) has been building new chips for "netbooks," a product that is much smaller than most laptops and significantly less powerful. Dell (NASDAQ: DELL) has decided to drink that water and bring out a netbook of its own.
According to The Wall Street Journal, "One person familiar with the matter said the new device will likely sell for less than $400."
The launch is a waste of time and money. The smallest laptops now weigh under two pounds and have modest processors. That means the price points for them will keep dropping.
Over in the smartphone industry, companies like Apple (NASDAQ: AAPL) and Research in Motion (NASDAQ: RIMM) are putting out more "computer-like" products each year. Larger handset companies are working to get into the same business because the higher price points of these handsets yield a better margin.
Dell should stick to what it does well. The "netbook" has too much competition and no future.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
9-03-2008 @ 12:59PM
MS said...
Ity amazes me that jounalists, who have never done anything more than use a word processor to voice an opinion, and have never done anything productive in the real world, feel they can second guess Captains of industry, who built corporate empires from humble beginings.
Those of us who madfe our fortunes in the business world learned something they don't teach in Jounalism classes.
A business cannot remain staitc. It either goes ahead or falls back. Companies like Dell must constantly try new things and products. Some may be failures and some will be successful, and the proof of managements prowess is whether they come up with more good ideas than bad.
THAT IS WHY DELL IS COMING OUT WITH A SMALL COMPUTER, FOR BETTER OR WORSE!!!
9-03-2008 @ 5:17PM
upswing400 said...
I agree. Michael Dell has been right 95% so far & must know something we don't. My money's on Dell - hook 'em horns!