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Michael Dell on Netbooks and Other Small Things

DELL_209_fl ZDNet is currently running an interview with Michael Dell in which he had some interesting things to say about mobile computing.

First of all, he is not buying all the recent commentary that Netbooks are saving the PC industry and will be outselling Notebook computers in a few years. Even though Dell has released a Netbook that is generating a lot of buzz, he seemed pretty dismissive of the whole thing. When the interviewer referred to Netbooks as a phenomenon, Mr. Dell had this to say:

I’m not that fond of the phraseology. If you look at screen sizes for portable computers, 85 percent of portable computers that run advanced operating systems are in the 14- to 15-inch screen space. What percentage will be 8.9- to 10-inch [screens] is hard to say.

We have introduced a product there, but I don’t think [netbooks] will be the massive growth factor in the industry. I think it’s a second machine in developed countries and a first machine in newly developed countries.

I agree with him that for most users Netbooks will be second or third computers, but I feel that if the prices drop a little lower, and the processors get a little faster, Netbooks will sell in massive numbers, and will become a common fixture in the enterprise and the consumer market.

In light of the recent debut of Android, of course the questions came around to the long standing rumor that Dell was preparing to produce a smartphone of it’s own. Mr. Dell dodged that line of inquiry as follows:

I think you will see smaller and smaller screen devices from Dell.

Smaller and smaller screens? Perhaps not a phone at all…an Axim MID or UMPC perhaps? We live in hope, Mr. Dell, we live in hope…

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  • I love netbooks. I hope the netbook market will grow.
  • Dell bet against netbooks. That explains why he is trying to jump ahead to the next trend. Maybe he can predict that, but it may be easier to predict the path of a hurricane that hasn't taken shape yet than to guess which way tech trends will go.
  • Robert
    Dell had a small screen device its called the X51V, wake up Dell and smell the roses!
  • Zealot
    I think Netbooks will have more of an effect in the Enterprise then expected. Certainly as a second laptop, but also as a more mobile way to stay connected to the LAN, take notes and function in large campus environments.

    That is how I and several of my coworkers are using Netbooks in the Enterprise, and I think that kind of "intracampus" use will become more prevelant in a year or two.

    The ability to connect to external monitors and projectors is also a big plus in terms of Enterprise adoption, cutting down the amount of hardware you have to lug when you have a day of presentations. That is the main reason our Corporate Development VP just bought an Eee 900.


    I agree however that consumers are the main market for netbook sales overall, but don't ignore the Enterprise possibilities.
  • doogald
    I have heard that there is almost zero margin on Netbooks, so that may explain his lack of excitement about them.

    I'm not so sure about enterprise adoption myself. I see these as consumer machines first, maybe road warrior commercial users as well, but only in specific markets and positions.
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