The low-cost sub-portable segment revisited

JK on the Run has put to print what many of us have observed - notebook manufacturers appear more interested in maximizing profits than in establishing the low-cost sub-portable segment established by the Asus Eee PC. The site cited the (practically) 100% increase between announced and actual selling prices of the OLPC (USD100 announced, USD200 selling) and the Eee PC 701 ($200 announced, $400 selling).

In addition, newer models, which are supposed to be competing with the original Eee PC are basically more advanced and more expensive (HP Mini starts out at USD499 and goes over USD800; MSI Wind's pre-order price is USD610). Even Asus itself is not exempt with the Eee PC 901's pre-order price at USD549. Which is quite ironic since Asus was the one which established the market segment in the first place. But it now seems bent on competing with competitors trying to compete with its original Asus Eee PC in a roundabout way simply because they can't compete direct on feature for feature for the lowest price.

Well, if Asus does not see the light, hopefully (and expectedly) other manufacturers such as Compal or ECS will pull back and reverse the trend. After all, computers in any decent form and quality will always sell at the holy grail price of USD199. That was how the Asus Eee PC managed to generate so much pre-selling hype in the first place. It was announced at USD199. That is also how the Everex gPC, an otherwise ordinary computer with a boring configuration, have managed to become a Walmart hit. It is priced at USD199.

Imagine what a sub-portable with 7" 800 x 480 LCD, 512MB, 4GB, WiFi, webcam at USD199 will fare then. Well, imagine the original Asus Eee PC 701 4GB at USD199. It will yet become the iPhone of sub-portables.

You can read the JK on the Run article here.