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	<title>Nigel Dessau &#187; netbook</title>
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		<title>Mind the Gap</title>
		<link>http://blogs.amd.com/nigeldessau/2009/08/04/mind-the-gap/</link>
		<comments>http://blogs.amd.com/nigeldessau/2009/08/04/mind-the-gap/#comments</comments>
		<pubDate>Tue, 04 Aug 2009 19:48:53 +0000</pubDate>
		<dc:creator>Nigel Dessau</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[netbook]]></category>
		<category><![CDATA[notebook]]></category>
		<category><![CDATA[processor]]></category>

		<guid isPermaLink="false">http://blogs.amd.com/nigeldessau/?p=321</guid>
		<description><![CDATA[I have just seen a sneak preview of the PCMag Digital Network’s 2009 Consumer Technology Holiday Study and it is full of interesting stuff. I don’t want to spoil their party and pre-release all the details, but I do have permission to talk about one particular question, on our favorite subject of netbooks.
From a sampling [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">I have just seen a sneak preview of the </span><a href="http://www.pcmagnetwork.com/"><span style="font-size: small; color: #800080; font-family: Calibri;">PCMag Digital Network’s</span></a><span style="font-size: small; font-family: Calibri;"> 2009 Consumer Technology Holiday Study and it is full of interesting stuff. I don’t want to spoil their party and pre-release all the details, but I do have permission to talk about one particular question, on our favorite subject of </span><a href="http://en.wikipedia.org/wiki/Netbook"><span style="font-size: small; color: #800080; font-family: Calibri;">netbooks</span></a><span style="font-size: small; font-family: Calibri;">.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">From a sampling of almost 1,700 PCMag digital subscribers, they asked netbook buyers whether they would instead consider purchasing an </span><a href="http://links.amd.com/NetvsNotebook"><span style="font-size: small; font-family: Calibri;">ultra-thin laptop</span></a><span style="font-size: small; font-family: Calibri;">, which has a bigger screen, faster processor and larger keyboard but costs on average $200 &#8211; $400 more. Only about a third of those asked said they would still by a netbook.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">So, what do we learn from this?</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">I think it’s fair to takeaway that price is driving the growth of the ultra-thin vs. the netbook segment, with those willing to pay for it getting more for their money in the form of an ultra-thin notebook, and those unwilling to getting a netbook’s more limited functionality instead.<span style="mso-spacerun: yes;">  </span>Of the 66 percent of the respondents who either weren’t sure or who outright would consider an ultra-thin system, we think something like the </span><a href="http://links.amd.com/HPdv2"><span style="font-size: small; font-family: Calibri;">HP dv2</span></a><span style="font-size: small; font-family: Calibri;"> and its bigger form factor is worth a look.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">But it gets more interesting when considering the data plans that are increasingly associated with netbooks, with </span><a href="http://www.businessweek.com/magazine/content/09_22/b4133000229480.htm"><span style="font-size: small; color: #800080; font-family: Calibri;">BusinessWeek pointing out earlier this year</span></a><span style="font-size: small;"><span style="font-family: Calibri;"> that the total cost of ownership over two years for an otherwise discounted netbook could reach $1,440.<span style="mso-spacerun: yes;">  </span>That doesn’t include the price ― discounted, but still ― of the device.<span style="mso-spacerun: yes;">  </span>So now we’re talking more than $1,600.<span style="mso-spacerun: yes;">  </span></span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">For a netbook.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">Is that real computing at a realistic price?</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">The truth is that most mainstream users actually don’t really care what processor is in their PC.<span style="mso-spacerun: yes;">  </span>This isn’t the case for the performance-centric enthusiast, but they make up a very small part of the market. The rest of us care primarily about the user experience, what the system is going to deliver on a daily basis in real-world use scenarios.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;">Taken together, the PCMag survey data and the BusinessWeek article should be food for thought for anyone in the market for a reasonably-priced new mobile system.</span></p>
<p class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p><strong><em><span style="font-size: 11pt; line-height: 115%; font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">Nigel Dessau is senior vice president and chief marketing officer at AMD</span></em></strong><em><span style="font-size: 11pt; line-height: 115%; font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;; mso-fareast-font-family: Calibri; mso-bidi-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">. His postings are his own opinions and may not represent AMD&#8217;s positions, strategies or opinions. Links to third party sites are provided for convenience and unless explicitly stated, AMD is not responsible for the contents of such links sites and no endorsement is implied</span></em></p>
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		<title>Netbook v. Notebook – Confusion Ensues</title>
		<link>http://blogs.amd.com/nigeldessau/2009/06/30/netbook-v-notebook-%e2%80%93-confusion-ensues/</link>
		<comments>http://blogs.amd.com/nigeldessau/2009/06/30/netbook-v-notebook-%e2%80%93-confusion-ensues/#comments</comments>
		<pubDate>Tue, 30 Jun 2009 15:00:11 +0000</pubDate>
		<dc:creator>Nigel Dessau</dc:creator>
				<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[AMD Athlon Neo]]></category>
		<category><![CDATA[netbook]]></category>
		<category><![CDATA[notebook]]></category>
		<category><![CDATA[ultrathin]]></category>

		<guid isPermaLink="false">http://blogs.amd.com/nigeldessau/?p=296</guid>
		<description><![CDATA[Vodka and water. They look the same, but taste different (or so they tell me).
 
Similarly, netbooks may look like notebooks, but ― as we’ve previously pointed out ― they’re not the same.
 
NPD released a survey last week finding that 60% of consumers who purchased a netbook thought it would have the same performance as a [...]]]></description>
			<content:encoded><![CDATA[<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small;"><span style="font-family: Calibri;">Vodka and water. They look the same, but taste different (or so they tell me).</span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;">Similarly, netbooks may look like notebooks, but ― </span><a href="http://blogs.amd.com/patmoorhead/2008/09/02/five-disappointing-days-on-the-road-with-a-cheap-mini-notebook/"><span style="font-size: small; color: #800080; font-family: Calibri;">as we’ve previously pointed out</span></a><span style="font-size: small;"><span style="font-family: Calibri;"> ― they’re not the same.</span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><a href="http://www.npd.com/press/releases/press_090622b.html"><span style="font-size: small; font-family: Times New Roman;">NPD released a survey</span></a><span style="font-size: small;"><span style="font-family: Calibri;"> last week finding that 60% of consumers who purchased a netbook thought it would have the same performance as a notebook. Additionally, out of the 18-24 year old demographic – a major segment for netbooks – an astounding 65% said they bought their netbooks expecting better performance. </span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;">It’s no wonder that </span><a href="http://news.cnet.com/8301-13924_3-10239390-64.html"><span style="font-size: small; font-family: Times New Roman;">some netbook resellers saw a 30% return rate</span></a><span style="font-size: small; font-family: Calibri;">, as reported by </span><a href="http://www.cnet.com/profile/mbrookec/"><span style="font-size: small; color: #800080; font-family: Calibri;">Brooke Crothers at CNET</span></a><span style="font-size: small;"><span style="font-family: Calibri;">.</span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small;"><span style="font-family: Calibri;">Clearly, there is confusion in the market over the functionality of a netbook. And I don’t blame the consumer. </span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;">So what do we do? </span><a href="http://www.businessweek.com/the_thread/techbeat/archives/2009/06/npd_consumers_a.html?chan=technology_technology+index+page_top+stories"><span style="font-size: small; font-family: Times New Roman;">BusinessWeek’s Olga Kharif</span></a><span style="font-size: small;"><span style="font-family: Calibri;"> wrote a call to action for PC makers and retailers to better explain the difference in netbooks’ and notebooks’ capabilities. Speaking from personal experience, she writes, “I loved using [my netbook] to quickly check Hotmail or to watch a video off of YouTube. But try multitasking, such as downloading a photo or a document while streaming a video off of YouTube, and their performance falls off the cliff. Consumers need to be made aware of this before they make their purchases.”<span style="mso-spacerun: yes;">  </span></span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;">In some cases, consumers may even encounter problems during normal Web surfing. Many Websites now have video or flash right on their homepage. If you’re a parent buying a netbook for your kid, try loading </span><a href="http://disney.go.com/index"><span style="font-size: small; font-family: Times New Roman;">Disney.com</span></a><span style="font-size: small;"><span style="font-family: Calibri;">. </span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;">As with battery life, we think the PC industry has a role in helping consumers make educated decisions. In fact, </span><a href="http://www.bestbuy.com/site/olspage.jsp?id=pcmcat163300050051&amp;type=category&amp;searchresults=1&amp;searchterm=netbook"><span style="font-size: small; font-family: Times New Roman;">Best Buy calls out on their Website</span></a><span style="font-size: small;"><span style="font-family: Calibri;"> that, “Netbooks may look like laptops, but they don&#8217;t have the full capabilities of a computer.” </span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small;"><span style="font-family: Calibri;">What I also find interesting about the NPD survey is that the percentage of consumers who bought a netbook expecting the performance of a notebook closely parallels the percentage of netbooks that never leave the home (60% according to NPD). To me, this signifies that there is an opportunity in the market for a higher-performance product that is inexpensive and lightweight, satisfying consumers&#8217; desire for a small, powerful machine while not disappointing on performance. </span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;">Of course, AMD’s response is the </span><a href="http://blogs.amd.com/patmoorhead/tag/ultrathin/"><span style="font-size: small; font-family: Times New Roman;">“ultrathin” category</span></a><span style="font-size: small; font-family: Calibri;">. If you’re looking for a lightweight, sleek laptop that is still powerful enough to handle your day to day activities, we recommend you check out the </span><a href="http://www.shopping.hp.com/go/dv2"><span style="font-size: small; font-family: Times New Roman;">HP Pavilion dv2</span></a><span style="font-size: small;"><span style="font-family: Calibri;">, powered by the AMD Athlon™ Neo processor for ultrathin notebooks.<span style="mso-spacerun: yes;">  </span></span></span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small; font-family: Calibri;"> </span></p>
<p class="MsoNormal" style="margin: 0in 0in 0pt;"><span style="font-size: small;"><span style="font-family: Calibri;"><strong><em>Nigel Dessau is senior vice president and chief marketing officer at AMD</em></strong><em>. His postings are his own opinions and may not represent AMD’s positions, strategies or opinions. Links to third party sites are provided for convenience and unless explicitly stated, AMD is not responsible for the contents of such links sites and no endorsement is implied.</em></span></span></p>
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