High Speed Internet Access (HSIA): Mobile Broadband

Apple is conspicuously missing from the netbook market. Steve Jobs dismissed netbooks as a piece of junk a few months ago. He said “We don’t know how to make a $500 computer that’s not a piece of junk”.

Apple CEO Tim Cook more recently repeated the sentiment as reported by CNN. “Netbooks, he said, are “principally based on hardware that’s much less powerful than we think customers want, software technology that is not good, cramped keyboards, small displays.”
“We don’t think people will be pleased with those products,” Cook added. “It’s a category we watch, we’ve got some ideas here, but right now we think the products are inferior and will not provide an experience to customers they’re happy with.”

In spite of the derogatory comments about netbooks, Apple are avoiding dismissing the possibility out of hand. They do concede that consumers want portable, low priced devices to do things like email and web browsing while on the go. Apple’s answer at the moment is that the iPod or iTouch fills this need. In addition, Apple offer an ultra-thin notebook for portability in the form of the MacBook Air.

As far as future product offerings go Apple say that they are working on ideas for a netbook type product. Speculation, based on a patent, is that this could be a touchscreen netbook.

Apple have just posted a 15 per cent increase in quarterly profit. This was primarily driven by iPhone sales that were up 123%. In contrast, Apple Mac sales fell however and this was put down to the poor economy.

Netbooks have made an impact on computer profits industry wide. The profit margins on netbooks are smaller. The success of netbooks has seen a reduction of laptop sales. It has also caused an expectation in the minds of consumers in terms of lower prices.

If it’s true that a good number of people would prefer a product that was bigger than a netbook but in the same price range then the reports that Apple may slash the price of the entry level Mac might provide the answer. There are also bigger netbooks about to come on the market like the Acer Aspire One 751 with a. 11.6″ screen.

However, the small size and weight of netbooks will always be the key selling point for some consumers who want a computer with a bigger keyboard and screen than a smartphone but don’t want to carry around anything bigger than the current crop of netbooks.

One thing’s for sure, the netbook market is gearing up to evolve even more in the coming months and it will be interesting to see how Apple respond.

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