"The era of a perfect Internet computer for $99 is coming this year,” said Jen-Hsun Huang, chief executive of Nvidia. The technology industry is facing a new revolution. The need for efficient, small, cheap computers has been growing and is finally reaching a peak. The way producers have responded to the latest consumer needs concerning laptops is the new netbook. The netbook is a light and cheap compact PC. Even though it has trouble running more demanding software such as games and photo-editing programs, it is something that you carry around all day since the battery lasts hours with only one charging and it is great for people who mainly need a PC to go online. The first of the new netbooks will be on the shelves in June probably provided by Acer and Asustek.
What does this mean for the industry overall? The sales of PCs have been falling and are expected to keep on falling throughout 2009 even though the netbook is predicted to sell well. Things are definitely not looking good for Intel and Microsoft, which reported its first sales decline ever of the PC version of Windows. The netbooks that are in stores now use an Intel chip that can support Windows, however, the new version is running on Linux and a different kind of chip, one similar to cell phone chips. This will also lead to PC makers placing more price pressure on Microsoft. Microsoft will have to come up with a new product if it wants to keep its position in the market. On the other hand, cell phone carriers will profit from this change. They will see their market expand to include PC users.
Microsoft and Intel advise people to be cautious when buying a PC under $300; however, the new netbook might turn out to be exactly what the market needs right now.