Ampers.
Dell: Netbooks won't change shape of PC market
Summary
Company founder Michael Dell expresses doubts about the netbook form factor and discusses the company's push into services, as well as growing customer interest in green IT.
Topics
Netbooks are unlikely to change the shape of the PC market, according to Michael Dell.
A number of hardware vendors, including Dell, have been unveiling their own versions of the ultraportable devices, but it seems Dell himself is not convinced by the form factor. When asked about the netbook phenomenon, Dell said: "I'm not that fond of the phraseology. If you look at screen sizes for portable computers, 85 percent of portable computers that run advanced operating systems are in the 14- to 15-inch screen space. What percentage will be 8.9- to 10-inch [screens] is hard to say."
"We have introduced a product there, but I don't think [netbooks] will be the massive growth factor in the industry. I think it's a second machine in developed countries and a first machine in newly developed countries," said Dell.
In a wide-ranging interview on Tuesday, the founder and chief executive of Dell also discussed his company's upcoming push into services.
Dell is planning to launch an expanded managed services offering in London soon, with a suite of services, including helpdesk support, available to customers.
"The services business for us is roughly a $7 billion [£3.8 billion] business. For every dollar spent on computers, companies then spend $2 to $3 on infrastructure services and support. When we sell 90,000 machines to a mining company in Australia, the opportunity is to attack that $2 to $3 and take over the systems management of that," he said.
However, this doesn't mean Dell is going to go down the same route as HP, which bolstered its services operation by buying EDS. Dell said he preferred smaller acquisitions that aid the company by the "network effect" of sharing skills.
"I wouldn't hold your breath for a really big acquisition," he said. "We have some pretty good history with organic growth."
Dell avoided the question of whether the company will move into making phones, saying only: "I think you will see smaller and smaller screen devices from Dell". He also noted that operating systems such as Windows Mobile and Google's Android have created the potential for disruption in the mobile arena.
The Dell chief pointed to where much of the future growth in PC sales will come from: emerging markets. "The PC is an echo of the cell phone, about three years after. If you want to know where people are going to buy PCs, go where they were buying cell phones three years before for the first time."
Dell added that there has been a dramatic increase in customers looking for greener IT hardware: "The thing I've seen change dramatically in the last 12 months is: a year ago, if you went to a chief information officer with a product that saved energy, they would say that wasn't their budget so not their problem, but energy costs have gone up so much they are being held accountable for energy consumption."
Talkback Most Recent of 7 Talkback(s)
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Michael Dell
Was he the guy who said "The world will only ever need five Netbooks"
Ampers.
ampers@...25th Sep 2008 -
RE: Dell: Netbooks won't change shape of PC market
I would like to see a portable device with a 24 inch screen. It sounds a bit crazy but if the hardware industry leaders would invest in flexible (possibly even folding screens) you could have a device about the size of a PS3 you could use in default mode as a phone but would open up to a 12 or 24 inch screen for all types of visual media. Add a great headphone jack and you can get most of your media on the go with a nice size screen. Add some color e-ink of an advanced resolution and you could eliminate most of the media devices in your home and carry your data with you. Make it a touch screen with a full sized keyboard layout and you can replace your PC, Cell Phone, Laptop, Netbook, Ipod, T.V., Radio, etc. Even books.
On an airplane with limited space open the device to 12 inches. At home in a comfy chair or at work open the device to 24 inches.
mr197225th Sep 2008 -
Dell is wrong
I've never bought a laptop in 20+ years of working in IT. I've never seen the point or been able to justify the expense.
I now own an EEE PC. Sorry, Dell. You're mistaken. There is a massive market for lightweight, low-cost laptops.
anthony_hunt26th Sep 2008 -
Margins are slim ...
Well they have to play down the netbooks because the margins are much slimmer than the full size notebooks while the overheard expenses (operational, marketing, manufacturing, etc) are relatively the same.
Wait till more low cost Chinese netbooks start hitting the markets for price points under $200, then the devices start to become disposable.
MisterMiester26th Sep 2008 -
I Agree with You. Dell has been wrong before
Like The quote about Steve Jobs just closing Apple and giving the shareholder's money back.
Them holding out on using AMD processors UNTIL the Core 2 Processors came out.
I too have never owned a laptop but will be purchasing a netbook, either the MSI Wind (6 cell battery) or the Lenovo S10.
Even though you can find some laptops that are priced about the same and have more internal peripherals and larger screens the battery life is horrible.
The netbooks avaerage about one hour per battery cell so if you get a 3 cel then about 3 hours, 6 cells-6 hours.
For browsing the Internet and email they can't be beat.
But to be honest I don't particularly care for dell's netbook.
dunn@...29th Sep 2008 -
Nice, but needs work...
The netbook idea is a fantastic idea. But, it's no
panacea of computing desires or needs. I think it's
great enough that I bought one of the Dell Mini's. I
waited for Dell's version because the performance of
the parts blows the EEE PC out of the water. I don't
have time to wait 2 hours just to install Office (only
took 10 mins on my Dell Mini...) But, I will keep my
17" notebook, as I will always have need for power on
the road too.
I'd say more than 1/2 of the netbook owners also own a
much larger and more powerfull notebook.
So far though, I'll have to say that the netbook is
neat, but too small. I'm waiting for a 10" model with
1280x800 screen (Too much of the web and software
require at least 768 lines horizontal resolution, even
Asus' and Dell's apps installed ON their devices have
this issue. WTF??!?!?) And a slightly bigger
keyboard. The 8.9" model's keyboards are just a hair
too small for me, and the button changes required are
not very good. That slightly extra room will make all
the difference. And I have small hands too, so go
figure!
That 1 extra inch could change the usability of such a
device to gain much more market. Weight would not
change much, and portability differences would be un-
noticable.
Narg29th Sep 2008 -
Netbook market will continue to explode.
The paperback book form factor and the $100-$200 price range targets will continue to make this market expand. Second computers, travelers, kids, college students, and that's only in this market.
Hardware equivalent to 1999 technology (but smaller) will run latest Linux (like Xubuntu.com) fine... I have a P3-500Mhz laptop running Xubuntu 8.04 for travel and presentations and want a smaller (but don't need more powerful). $400 is too much but under $200 or under $150 and its off to the store!
jvin24829th Sep 2008
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