HP to shake up netbook market with mainstream line

After a brief experiment in the education market, HP on Wednesday is set to introduce a whole line of netbooks for mainstream consumers.

The HP Mini 1000 comes in three versions, with starting prices ranging from $379 to $699, and will be available at retailers worldwide starting Wednesday.

HP first dipped its toe into the mini-laptop market back in April with the Mini-Note 2133, which it claimed was strictly for children and some business travellers. At the time, HP was adamant this was not meant to play in the same arena as the consumer-oriented netbook from Asus, the Eee PC. Though it won't break out the numbers, HP now says the sales of the 2133 "exceeded all expectations".

But the new HP Mini 1000, Mini 1000 MIE, and the Mini 1000 Vivienne Tam Edition are very much intended for consumers. The look and feel of the Mini 1000 line isn't drastically different from the 2133 but the netbook market has had a dramatic makeover.

The first difference between the Mini-Note 2133 and the updated version is the Mini 1000 is actually a "netbook" in the true sense - as it contains Intel's Atom processor, rather than the C7 from Via.

Second, there are more options depending on the features a person needs, and a cheaper low-end device, now starting below $400. The Mini 1000, intended for productivity applications, starts at $399 and is available starting Wednesday. It comes with Windows XP and either an 8.9-inch or 10.2-inch screen, for $449. The MIE, meant for more casual, online activities, starts at $379 and comes with Linux. The Vivienne Tam version will go on sale in mid-December starting at $699.

Otherwise, compared to the earlier 2133, the basic computer it is shipping is essentially the same. Slightly thinner and lighter - due to the plastic case rather than the aluminium of the 2133 - but with the same 92 per cent keyboard, built-in webcam, wireless, and options for solid-state or hard-disk drives.

The HP MediaStyle interface is available on the Mini1000 MIE version, which comes with Linux rather than Windows XP like the other two models. MediaStyle sits on top of Linux and is a dashboard that takes users to music, IM, photos, videos, and the web with one touchpad click, which HP says will shield users from ever having to interact with the open-source OS.

"It's important we made sure that Linux does not manifest itself to the user," said Carlos Montalvo, vice president of marketing for the Personal Systems Group at HP.

Different colours, screen sizes, and slightly lower price tags have been the only way PC makers have come up with that set these tiny laptops apart ao far. By creating a unique interface option on the MIE, HP has officially made the first real move to differentiate netbook devices.

In March 2008, when HP introduced the Mini-Note 2133, IDC estimated the year would finish up with 3.6 million netbooks shipped worldwide. As of October, IDC is now estimating that 10.9 million netbooks will ship.

It's a dramatic increase, and the difference is all coming out of Europe, the Middle East and Africa (EMEA), where Asus and Acer have been incredibly aggressive about their netbooks, the Eee PC and Aspire One, respectively. Of the 10.9 million units that are estimated to ship worldwide by the end of 2008, 8.1 million will go to EMEA, says IDC.

Acer and Asus have done well in the region, as evidenced by Acer's quick rise to the top of the portable PC market there. But it's been aided by local telecom companies, who are subsidising netbooks in exchange for a signed wireless service contract. It's a model that in the past few months has thrived in Europe.

Dell signed up Vodafone for this kind of deal on its netbook, the Inspiron Mini 9 in September, but HP's mostly been on the sidelines in this regard and representatives for the company haven't indicated if a similar deal with wireless providers are in the works.

Either way, in the end, HP is among the best positioned in the netbook market: It's the biggest PC maker out there, and has the resources and industry clout to actually do something relatively different in the netbook space. But whether success comes at the cost of selling traditional laptops still remains to be seen.

Original article: HP gets serious about Netbooks from CNET News.com