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ASUS Eee PC gives Sony the willies

by Parm Mann on 28 February 2008, 13:07

Tags: Sony (NYSE:SNE)

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The Register

Tony Smith of The Register reports:

"If [ASUS' Eee PC] starts to do well, we are all in trouble," Mike Abary, a senior VP with Sony US' IT products operation, told Cnet.

"That's just a race to the bottom... if mainstream buyers buy it then whoa..."

Abary's fear is clear: let punters know they can do what that want to do computationally on a small, very cheap machine, they won't want to pay out for expensive upgrades sporting the latest processor, graphics and screen technology.

The PC industry as a whole - let alone Sony - has long depended on punters' desire for more performance from their computers as a driver for regular sales. Ever more bloated apps and operating systems have helped, as they've exposed the limitations of older systems.

Market watchers have long wondered when the point will come when punters decide their current machine is powerful enough for the tasks they want to perform, and the regular upgrade cycle comes to an end. As sales of computers to consumers have grown and grown, this point has become more important.

Still, why blame ASUS? It's largely responding to demand, and consumer laptop prices have been tumbling anyway. In the US, Sony offers notebooks priced under $800 - over here you can now get half-decent ones for the sterling equivalent, £400.

The Eee comes in at around £220, so there's still some space for low-end laptops to fall into before they start matching ASUS' pricing. If the Eee encourages better prices for consumers, then that's no bad thing. Companies like Sony will just have to work harder to win their favour.



HEXUS Forums :: 3 Comments

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I think it could, kind of, though not in the way they think. A lot of people are buying these who already have a main machine, frequently a desktop. The latter gives them a powerful machine, but the Eee makes a great accessory - kind of like a PDA on steroids. They can surf, handle their email, do basic office stuff on the move, and still have the power, flexibility and upgradeability of a desktop at home. Kind of removes the need to choose a top spec laptop as your main machine.
I rather enjoyed ‘lugging’ my eee to a meeting today - i used it to do powerpoint on a projector and raised a few eyebrows from those with bulky laptops.

It's all about the size + the price of entry - nothing comes close. OTOH it's not a replacement, more an ancillary device. Upper management is very interested seeing as they've got to lug lenovo's everywhere just to do some basic tasks.
I played with one the other day and can't see myself giving up my lovely Lenovo X60 for it (thanks work!), but I think the overriding point here is that most people really don't need all that processing power for the stuff they do. A Pentium 1 could run Word, Excel and Internet Explorer on a harddrive measured in Megs, not Gigs. So if the EeePC evolves, it could seriously reduce the prices and margins for all the other laptop players over time.. ..I think this would be a bad thing for most people on this forum as the mainstream computer user essentially subsidises the high-end users (some of the high RnD costs are made back on the mainstream parts that incorporate the cutting-edge tech from a generation before). No need for new technology amongst the mainstream would mean high-end parts pricing would need to bear the full brunt of the RnD charge…