The Netbook Lives On

Tablets may be the hottest mobile devices on display at this year’s Computex. But netbooks still have a presence at the trade show, and vendors are coming out with several new models that will hit the market this year. Their low cost will continue to drive sales, analysts said.

PC maker Asus, a pioneer of the netbook concept, unveiled two new models at Computex. The Asus Eee PC 1025 C and 1025 CE are Windows netbooks that will launch worldwide in the fourth quarter of this year. Priced at $299, the devices are built with an “instant on” feature that allow users to resume Windows in two seconds from sleep mode.

The other Asus netbook that has caught some attention is the Eee PC X101, which runs Intel’s MeeGo mobile operating system. The device will launch worldwide in July and cost $199. Asus will also be releasing a Windows 7 version of the netbook that will cost between $240 and $250.

Asus’ rival Acer is also showing a low-cost netbook priced at $199. The Aspire One Happy has both Windows and Android 2.3 installed. Users can toggle between operating systems by rebooting the system. Acer launched a version of the device worldwide last month.

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Laptop Users Still Prefer USB Modems

Mobile data users still overwhelmingly prefer USB modems for keeping PCs and other devices connected while on the go, but they may turn more to built-in cellular radios and portable Wi-Fi hotspots over the few years, according to ABI Research.

Despite the growing market for connected tablets and the availability of laptops and netbooks with high-speed cellular modules built in, worldwide shipments of USB modems still surpass embedded 3G and 4G modules by three to one, ABI said in a report Monday. But by 2016, that ratio may change to near an even split, said ABI analyst Jeff Orr.

Mobile operators including AT&T, Verizon Wireless and Clearwire give consumers the option of buying a laptop or netbook with an integrated cellular module. Those computers let subscribers go online almost anywhere without using up a USB port or carrying around a separate piece of hardware that sticks out of the side of the system.

Built-in modems lock buyers into one carrier or network technology for the life of the device, which most consumers and enterprises don’t want, Orr said. They buy USB modems because they can be easily discarded when a better network comes along, he said. Prices are low and often there is no early termination fee for getting out of the carrier data contract.  “That device becomes almost disposable,” he said.

One problem with built-in modems is that wireless technology changes faster than most users want to change computers. For example, the past three years — a typical PC lifetime — have seen the construction of both a WiMax and an LTE network in many cities around the U.S., offering 10 times or more the speed of 3G networks.

The market for embedded modems is still fairly small, according to ABI. In 2010, only about 5% of laptops worldwide shipped with built-in cellular modems, Orr said. Among netbooks, 17% came with modems, but overall shipments were much smaller for netbooks than for laptops. Meanwhile, 40% of tablets came with such modems, but the overall tablet market was smaller still.

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HTC Profits Rise, Lead By Android Popularity

Taiwan smartphone maker HTC Corp said first-quarter profit almost tripled, beating forecasts, driven by strong demand for its mobile devices, especially those running on Google’s Android operating system.

The company, which has just overtaken industry giant Nokia in terms of market capitalization, said on Friday that first-quarter net profit was $511 million.

“That its first quarter would be above expectations was well foreseen, Q1 seasonality was better than expected,” said Bonnie Chang, an analyst at Yuanta Securities in Hong Kong.

“For the second quarter everyone is expecting revenue sequential growth in the high teens to 20 percent, shipments will be strong and average selling prices are holding up pretty well.”

Growing demand for phones running on Google’s Android platform will help the smartphone market grow in 2011, boosting companies such as HTC and Samsung Electronics who are betting on the platform.

The smartphone market is likely to grow 58 percent this year and 35 percent the next, according to research firm Gartner.

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Android To Control Smartphone Market By 2016

Android will be the operating system of choice for 45% of smartphones shipped by the year 2016. It will take up most of the market share vacated by the soon-to-be exiting of Nokia’s Symbian operating system, according to figures released today by ABI Research.

Although Android will come to be the dominant player in the smartphone market, this doesn’t mean that OSes will necessarily see a big cut in their own market shares, ABI said.

In fact, the firm projects that Apple’s iOS will see its market share rise from 16% in 2010 to 19% in 2016, while Research In Motion’s BlackBerry OS is expected to fall slightly from 16% in 2010 to 14% in 2016. Microsoft’s Windows Phone 7 and Samsung’s Bada will also be players in the 2016 smartphone market, as ABI projects those two operating systems to take 10% and 7%, respectively.

ABI vice president Kevin Burden says that although RIM stands to lose a bit between now and 2016, the company will carve a comfortable niche for itself in the enterprise market, as enterprise users will still need the security provided by RIM’s network operations center.

“RIM’s slight loss of share doesn’t mean falling shipments,” he says. “RIM has found its niche, but the consumer market will grow faster than its portion of it.”

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Dell To Unleash Microservers

Representatives from Dell stated that the PowerEdge C5125 and C5220 were built for businesses that want to set up cloud computing infrastructures. Dell’s Barton George wrote in his blog that the C5125 will utilize AMD processors and will ship next month and the C5220 which will have an Intel processor will ship in May. The PowerEdge eco-friendly servers will have a dense 3U infrastructure that has 12 one-socket servers that can be used for running one application. These types of servers use four times less rack space and cabling which makes data centers more efficient.

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Japan’s Earthquake Will Not Impact PC Supply

According to Scott Lin, President  of Acer Taiwan has said the PC supply chain still has at least three months worth of stock.  That said, Lin stated that the Japan earthquake should not have an immediate will on impact on the PC market.

With PC manufacturers, brick and mortar each having at least one month’s worth of inventory, the supply should be fine for up to three months. Nevertheless, Lin did caution that Japan’s power infrastructure is an important factor and taking it online sooner rather than later will be crucial to whether the shortages become more serious. Read More…..

Flash Finally Comes To Motorola Xoom

Motorola announced on Twitter that the Android software update for the Xoom tablet is being pushed out in phases starting March 11, which includes enhancements to support the upcoming Adobe Flash Player 10.2.

Launched on February 24, the Xoom was pushed out to the market with some seemingly rushed, half done features, just so it arrived on the market before a new iPad. Despite certain hardware advantages over the original and new iPad, the Xoom flaunted 4G radios, SD card memory expansion and Flash support. However, none of these features were actually operational when the device launched.  Read More….

Android Takes Top Spot

Android smartphones bested iPhone and BlackBerry devices for the first time in the U.S. in the latest Nielsen Co. survey conducted right before Verizon Wireless began selling Apple’s iPhone.

Android devices made by several phone makers were used by 29% of the U.S. market in the November through January reporting period. That compares to 27% each for both Apple iPhones and BlackBerry devices from Research in Motion, Nielsen said.

In Nielsen’s most recent report from December, the three top smartphone operating systems were in a statistical dead heat, a Nielsen spokeswoman said Friday.

Microsoft’s Windows Mobile and Windows Phone 7 smartphones garnered 10% of the U.S. market from November through January, while the WebOS from Hewlett-Packard gained 4% and Symbian from Nokia earned 2%.  Read More…

Acer Returning To Server Market In U.S.

Acer, the No. 4 PC maker in this country, has released a line of servers and storage products for the United States market.

The launch marks the company’s return, or reinvestment, in the U.S. as a server vendor. Acer sells consumer PCs and related devices under its own name, as well under Gateway, eMachines, and Packard Bell brands.

It had previously sold servers in the U.S., but it let that business dwindle over the last few years. The company said it has made a major investment in this market.

It said it has expanded its support and service capabilities, and will manufacturer its server products in the U.S. through third-party makers.

“I want to make sure that we can we build very, very quickly and deliver much faster than everyone else,” said Todd Mottershead, senior manager for servers and storage at Acer.

IDC ranked Acer No. 3 worldwide PC shipments in the fourth quarter of 2010, following Hewlett Packard and Dell. In the U.S., Acer is the fourth largest vendor; HP has 28.6% of the U.S. market; Dell about 22%; Toshiba, about 10%; and Acer 9%.

Acer has been selling servers outside the U.S.

For its U.S. reintroduction, Acer has released a tower rack, blade system, and systems especially designed for cloud computing, all with a number of configurations, as well as network attached storage products. Prices range from $721 for a tower to $10,499, for storage. Acer will be selling through channel partners. Read More…..

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