As the release of low-cost laptops based on Intel's upcoming Atom processor draws near, Microsoft is getting boxed into a corner.
How Microsoft can stay in the low-cost laptop market
Microsoft plans to stop selling most Windows XP licences after 30 June, yet most of these low-cost laptops won't be powerful enough to run Vista when they arrive later this year.
That leaves Microsoft executives with a choice: do they extend the availability of Windows XP for low-cost laptops, or possibly concede this nascent market to Linux?
The poster child for the low-cost laptop is the Asus Eee PC, which hit the market in October last year and runs the Xandros distribution of Linux.
Consumers embraced the laptop, which uses a version of Intel's Celeron M processor, for its small size and ability to perform basic tasks such as web surfing and email. It became something of an overnight sensation, and that success caught the attention of other hardware makers, including top-tier PC vendors.
The Asus Eee PC's success wasn't possible without Intel's support. The chip maker was initially hesitant to embrace the push into low-cost laptops for fear it would drive down margins for its mobile processors if users opted to buy low-cost laptops instead of more powerful and more expensive models.
But Intel eventually decided that the opportunity to expand the size of the overall laptop market outweighed the risks of lower profit margins, and gave its backing to the little laptops.
Intel's support for low-cost laptops is ready to shift into overdrive. The company's upcoming line of Atom processors, relatively inexpensive chips that consume little power, will show up during the third quarter in small laptops, priced from $250 (£125) to $300 (£150). They will be aimed at users in developed markets and heavily promoted by the chip maker.
Intel executives want these laptops to be cheap enough that consumers don't think twice about buying them as a second computer. Most are planned to ship with either Linux or Windows XP, even though they will arrive after Microsoft's 30 June deadline has passed.
Windows Vista isn't a viable option in this product segment. It's too expensive and does not work on the stripped-down hardware configurations required to keep prices low.
"At the low end, Vista's hardware footprint is too large," said Tom Rampone, an Intel vice president and general manager of the company's Channel Platforms Group, noting that some low-cost laptops, such as Intel's Classmate PC, have just 2GB of solid-state storage instead of higher-capacity, more costly hard disks.
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Comments
Jimmy said: OS developers have always had the luxury of next gen hardware to take the pressure off their code The low cost computer penomena means there is now a market for and ultra efficient OS Imagine an efficient linux based Vista clone that looked and felt as good but ran on low end hardware How embarressing would that be for MS
Ron H said: Intel has set guidelines no 14 screens has it I wonder if EU competition people will happy with such a restriction on trade Agree with Jimmy perhaps back to the good old days of tight efficient and fast running code
Mr Philanthrope said: Hi I am Mr Philanthrope and I want every little child in this world to grow up using every bloatware well said I overprice If a generation of children are growing up used to be using linux then I will lose my sustainability I will be very angry with you and I will stop being a PhilantrhopePlease buy my bugware many thanks
cal said: why would you buy a sleek well made gadget and install some horrendous Microsoft bloatware on it you will only ever get the best out of something like this well a well made linux distro running
Jez said: Why would you want to buy a shiny brand new device in this market and then run an aging operating system like Windows XP on it In what decade have significant numbers in the end user market still been using the same operating system seven years after it was released Its time to move forward Who cares if Microsoft is coming to the party or not