You probably thought we forgot about announcing the winner of the BlackBerry TypePad Mobile contest, didn't you? The truth is we got some really good entries and we had to read through all of them several times as it was very hard to choose the one we thought was deserving of the awesome prize package:
- Unlocked BlackBerry Pearl 8100
- Two year TypePad Pro account ($300 value)
After much deliberation we are happy to announce that Vivek Gowri penned the winning post about the UMPC scene:
Significant Changes Coming for the Subnotebook Market
By Vivek Gowri
When the Asus EEE 701 debuted as the "$200 notebook" at Computex 07 last June, it sent a shock through not only the techblog community, but also mainstream media publications as well. In the intervening 5 months to its release, the EEE's price steadily increased, finally going on sale at a $399 price point. (The $299 2G Surf would go on sale later on without some of the niceties, such as upgradable RAM and a webcam.) Now, the price has gone upwards once more, with the 9" 901 model going on sale last week at a price of $549.99 in either Linux or Windows XP flavors, and a Atom based 901 is expected to debut at Computex 08 next month at a price of around $650. To put that in perspective, that's an increase of almost 250% from the original EEE concept. While the extra features are nice, the overall trend is somewhat disturbing, in light of the much increased competition from HP (MiniNote), Via (CloudBook), Intel (Classmate PC and Netbook) and, most recently, MSI.
Just this week, MSI released details and pictures of its new 10" Wind, which looks remarkably similar to the Apple MacBook. At $399, it packs a 1.6GHz Intel Atom processor that is substantially faster than the 900MHz Celeron M in the EEE, a 10" 1024x600 screen with a larger display featuring the same resolution as the 901, a 2.5" 80GB SATA hard drive, 512MB of RAM, 2.5 hour 3 cell battery, a webcam, and Linux. A version with XP, Bluetooth, and a 6 cell battery with 6 hours of runtime will go for $549. Due to the hard drive, the Wind weighs slightly more than the EEE (2.35 pounds as opposed to 2.18 for the 901), but given the extra prowess, it is easily forgiven.
As much as I love Asus, I am forced to admit at this point that the Wind is truly far superior to anything in the EEE range. The Atom processor in the Wind will eat the EEE's Celeron M353 for lunch, and not even pause to spit out the bones, and with an 80GB hard drive, the Wind is far less stifling in terms of storage space, though it is not a solid state disk as in the Asus machines. While this is not optimal, it enabled MSI to keep the price lower and allows for easy upgrading to drives of much higher capacity (up to 250GB and 320GB hard drives, numbers unthinkable in an EEE). Though the mechanical hard drives are heavier, use more energy, and are more prone to failure, none of these are factors enough to change the fact that as of right now, solid state flash technology is simply not economically viable in a $400 device. Consider the fact that the Wind is a whopping 40% cheaper than the EEE 901, while having a much faster processor, four times the hard drive space, a larger screen, and better styling, and it is evident that MSI has a winning candidate on its hands. Even after the EEE gets the Atom processor later this year, it will be far too expensive to compete successfully with the Wind. The EEE 701 cannot be mentioned in the same sentence as the Wind, even though they share the same $400 price point. The MSI is so much more advanced in every way compared to the 701 that it's comical to the point of tragedy. 150% higher clockspeed (the EEE 701 is underclocked to 630MHz), 20 times the hard drive space (!), 60% more screen real estate, you name it
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So how should Asus combat the growth of its latest competitor? It should start by dropping prices drastically. Make the 701 4G as the lowest end model, at $250-300. Make a version of the 901 with 12GB flash and Linux and put it at $450, keep the 20GB Linux one at $550, and put XP on the Atom based 901 at $650. As flash prices continue to drop, keep lowering prices, and as Atom becomes more readily available, put it into the lesser models in the EEE range. Use the SSD factor to combat the fact that the Wind has much more storage space. This is only a short term fix, however. As the EEE continues its climb into the upper price echelons, it needs to become a more upmarket device in the manner of the HP MiniNote. However, at the same time, it needs to continue to dominate the lower price points, where people can impulsively throw out $400 for a notebook and not think twice about it. How can they accomplish this? Split the EEE into two lines. Make a polished model with good styling and some metal in its build for the higher end markets, and have a full plastic model like the current 901 at $400. I wish Asus luck in keeping its slice of this surging market. May the best subnotebook win.
Join me in congratulating Vivek on a very thoughtful blog post! Vivek, please email either Kevin or I (click on our cartoon head in the right sidebar) with your shipping address so we can make sure your prize package gets on its way to you. We'll also make sure you have all the information you need to activate your two year TypePad account. Let the blogging begin!
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