PriceSCAN Blog

July 22, 2008

Letting The “Air” Out Of Ultralight Notebook Prices

Computers | Jul 22, 08

Just thought I’d note some recent notebook computer price drops, including that of the vaunted MacBook Air.
Apple’s ultrathin laptop was going for $1,800 when I first commented on its sleek if feature-limited design back in February (see “The Air Not There”). The MacBook Air may now be purchased from vendors on PriceSCAN for just over $1,600, a drop of over 10% in six months (note also that the Apple Store is selling a refurbished model for $1,499).
Time Period: 4/14/2008 through 7/14/2008
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

The downward price pressure on this popular model could be simply due to the usual slow march toward obsolescence, but another factor could be the introduction of even lighter travel-oriented machines, including so-called “netbooks”. One example is the Asus Eee, priced a bit shy of $400. It’s a 2 lb Linux machine with a 900MHz Celeron M processor, 512MB RAM, 4.0GB HD, webcam, modem, 100 BT & 802.11g and a compact 7.0 inch WXGA Display. Of course, at one pound heavier the Air is a considerably more serious machine, with a 1.60GHz Core 2 Duo Mobile, 2048MB RAM, 80.0GB HD, , and a far larger 13.3 inch WXGA Display (it also has a webcam, modem, and 1000 BT & 802.11agn). However, without a DVD drive and the ability to swap batteries (except by Apple) it’s not clear the Air is hefty enough to serve as a principal computer. And if what’s desired is a mobile device to keep you in touch and able to access key documents away from the mothership, then, for many, a lighter, cheaper netbook like the Asus may make sense, in turn driving down the price of more feature-full lightweights.
As a wider spectrum of mobile computing devices emerges (including of course the iPhone and iPod touch) we may see a more finely gradated cost and feature choice set, unless and until the market determines the ultimate mobile computing machine.

Posted by jeffrey.trester
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February 11, 2008

The Air Not There

Computers | Feb 11, 08

Failing to find her childhood home on returning to Oakland, Gertrude Stein remarked "There is no 'there' there", and perhaps I'm just as lost given my difficulty locating the "there" in the new MacBook Air.
After all, commentators as esteemed as the Times' David Pogue and the Journal's Walter S. Mossberg have described handling the three-pound, 3/4" thick aluminum laptop as so satisfying a sensory experience that I was reminded of Woody Allen fondling that futuristic joy-inducing silver orb in his film "Sleeper". And in addition to such Apple coolness, the MacBook Air does feature a 13.3 inch screen, large for an ultralight notebook.
But for eighteen hundred bucks the Air delivers a relatively small 80 GB hard drive and just one USB port (the only other external connections are for headphones and an external monitor, so perhaps "Air" could be said to stand for air-gap). You can buy an external USB hub or Ethernet connection, but externals kind of defeat the point of the Air's almost hermetically-sealed elegance. And sealed is the operative word, as the battery is not meant to be removed by the user, and thus cannot be swapped for a spare on the road. When the battery dies, you'll have to pay Cupertino to replace it for you. No CD/DVD drive makes backing up data or loading programs from those media an issue, and of course without carrying an external drive you won't be playing DVD movies at 18,000 feet.
Apple offers solutions to these issues that are, well, quintessentially Apple. Download those movies from the company's store via Wi-Fi (which the Air does have) and if you need to get a tune out of the Air, dump it on an iPod. If you really must install software from a CD or DVD, the Air is sold with Remote Disk, a program which allows the machine to wirelessly access another Mac or PC's CD/DVD drive and use it as an external peripheral.
It's worth noting that Apple is offering a more advanced model with a feature road warriors may appreciate: a flash memory-based 64 GB solid state drive whose lack of a spinning disk may increase durability However, this version (with a 1.8 GHz CPU as opposed to the standard 1.6 GHz model) will run you a rather steep $3,100.
So perhaps it's just me, but all this seems like a fairly expensive way to eschew basic features of power management, data back-up, media/program access and connectivity which I find very useful when traveling. Maybe the Air can work on short trips for those with relatively light computing needs, a high degree of comfort with Apple-dependence (just to change the battery?) and/or a willingness to rely on another computer as the mother-ship. Sure, respectable people may touch this machine with a degree of ardor that borders on the obscene, but for now, I'll continue to insist on the ability to put disks in my laptop - and to be able to take the battery out, all by myself. Like Woody in Sleeper, I think that, no matter the tactile appeal of a machine, there are some things human beings should be able to do for themselves.

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April 12, 2007

Vista And The Vox Populi

Computers | Apr 12, 07

When it comes to its new operating system, it seems Microsoft just isn't feeling the love. A recent Harris Poll showed that the number of consumers intending to wait to purchase Windows Vista increased to 67% last month, from 31% in December 2006.

Why the tepid level of enthusiasm? A plethora of issues confront Redmond's new release, including driver and legacy application compatibility, hardware requirements for upgrade ("So I'll Take Vista, And Guess I'll Need More RAM, And Some New Peripherals – Aw, Just Give Me A New System…"), and what some call a lack of "Wow!" factor in Vista's feature set. This complex of factors may have something to do with the notably early and sharp price drop in the top of the line Vista Ultimate that I noted some weeks ago ("Vista Achieves Touted "Wow" Effect, Albeit Through Massive Price Drop"). Slower Vista acceptance is tough news for PC makers as well, since a new OS has traditionally been a key driver in promoting the purchase of new hardware. We're seeing some fairly aggressive markdowns in system prices right now, for both XP and Vista-equipped machines. Thus, what may be a challenging environment for Gates & Co.'s new offering could give consumers a break on notebook and desktop purchases as we move into the traditional Mother's Day/Father's Day/Graduation gift-giving period.
Just remember to warn Mom, Dad or the kid that the first Vista service pack hasn't been released yet.

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February 26, 2007

Vista Achieves Touted "Wow" Effect, Albeit Through Massive Price Drop

Computers | Feb 26, 07

The top of the line version of Microsoft's new operating system is starting off life with a fall in price best described as "rock-like". While sooner or later this decline should abate, it's an open question whether this species of Vista has yet found even a temporary bottom.

The OS in question is the "full" DVD version of Microsoft Windows Vista Ultimate, currently the most popular operating system on PriceSCAN.com. Just following the Vista launch five weeks ago it was going for at least $425, and now may be had for just shy of $340, a decline of some 20% from the introductory price (see graph below).

Time Period: 1/15/2007 through 2/19/2007
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Interestingly, the price of the full DVD version of Microsoft Windows Vista Home Premium has shown no such sharp decline, with the lowest vendor price on PriceSCAN falling only about 2% over the last month.
In any event, if you need Vista's business applications but also want the media center capabilities of Home Premium, the Ultimate version will get you there. And, as a reward for waiting the past few weeks to make your purchase, you can now do so at a substantial discount to the intro price. Just goes to show that when it comes to new products, it sometimes pays to wait, even for a very short period of time.

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February 5, 2007

"So I'll Take Vista, And Guess I'll Need More RAM, And Some New Peripherals – Aw, Just Give Me A New System…"

Computers | Feb 5, 07

Like global warming, Microsoft Vista took a long time to arrive, but we're finally feeling its impact. Now it's time to figure out the pros and cons, and how best to deal with it.

Gates and Co.'s new operating system has some serious advantages. There's no question the Aero interface is pretty. Windows are displayed in 3-D perspective and sport translucent borders so you can more easily shuffle through them. Users who envy the cool aspects of OS X will find features to cheer, like Explorer's fully integrated search bar and thumbnails with live miniatures of windows. Critics have praised the Photo Gallery's organization and editing features, as well as easier networking.
But many of those same critics have pointed out that drivers for older peripherals are hard to come by (especially for the 64-bit version). Unsurprisingly, that cool interface comes at a price, taxing memory and processor alike. Indeed, requirements for the Premium version of Vista (which includes Aero) are significantly higher than the minimal requirements necessary for a machine to be labeled "Vista Capable". According to Microsoft, that lower standard only requires an 800 Mhz processor, 512 MB of memory and a DirectX 9 capable graphics processor. But to run Premium, the bare minimum requirements include 1 GB of RAM (and reports are you'll need a fair bit more to run many applications smoothly), 1 GHz 32-bit (x86) or 64-bit (x64) processor, DirectX 9 support with a WDDM driver, 128 GB of graphics memory, Pixel Shredder 2.0, 32 bits per pixel, 15 GB of free space on a 40 GB hard drive, a DVD-ROM drive and of course the requisite audio output and internet access.
All this may be good news for hardware manufacturers, as users of less advanced systems find their machines choke on Redmond's new offering and feel compelled to upgrade. While increased demand may tend to at least stabilize hardware prices, this space has become intensely competitive, and many firms may see this as an opportunity to grab market share even if they have to forgo some per unit revenue. So if your old system can't be made to embrace Redmond's new Vista, be sure to compare prices here before buying, as you may find some outstanding deals in the ensuing upgrade melee.

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January 24, 2007

Lexar For Less

Computers | Jan 24, 07

You now have one less excuse for not backing up your data or having extra digital film. In the last few days we've seen a sharp drop in the price of Lexar JumpDrives and SD memory cards.

Both the Lexar 1GB USB JumpDrive and the Lexar 2GB USB JumpDrive saw drops of around 30% in their lowest vendor prices on this site, from around $50 and $75 to under $35 and $50, respectively.

Lexar Media 2GB USB 2.0 Jump Drive Lightning 100x
Time Period: 7/4/2005 through 1/15/2007
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Similarly, we've seen about a 25% decline in the lowest merchant-offered prices of the Lexar Media 1GB Secure Digital Card and the Lexar Media 2GB Secure Digital Card from approximately $40 and $60 to under $30 and just over $45, respectively.
So the next time your hard drive crashes or you can't take that extra photo for lack of memory, don't blame the cost of storage.

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January 5, 2007

Do People Just Love SanDisk Flash Memory Best?

Computers | Jan 5, 07

Recent price jumps on SanDisk flash memory products have increased their already significant premium over seemingly equivalent products from Kingston.

The last week of December witnessed PriceSCAN.com listed vendors raising the price of key SanDisk flash products appreciably, while Kingston prices were either raised far less or, in some cases, sharply lowered. For example, merchants raised the price of SanDisk's 1 GB CompactFlash Card by an average of 6.5%, versus an average decline of 7% in the offered price of the similar Kingston 1 GB CompactFlash 33x Card. Similarly, the mean price of the SanDisk 1 GB Cruzer U3 USB Flash Drive shot up by an eye-popping 31% while the average price of Kingston's 1 GB Data Traveler USB 2.0 Flash Drive rose by only .02%. A similar pattern can be seen across much of the flash product lines of these firms.
What this means for SanDisk, Kingston, and the flash memory market is unclear. In a rational market, a persistent, sustainable price difference would argue for an actual difference in quality. If Kingston's devices are truly the functional equivalents of SanDisk's, one would expect the pricing of these two lines to converge. In an environment of strong demand, that could mean the rise in SanDisk pricing serving as a signal to Kingston and others, resulting in a general price hike. Of course, absent that firm demand, the new SanDisk pricing might not hold.

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August 31, 2006

Windows Vista: Meet The New Price, Same As The Old Price

Computers | Aug 31, 06

Even a bit higher, actually. If a pre-order page that appeared on Amazon is to be believed, Vista, the latest version of Windows, is slated to be released January 30 of next year, at price levels at or exceeding those of the current release. So assuming this information is accurate, what does this tell us about Redmond's view of its competitive position?

It's been almost five years since the release of XP, and during that time a lot has happened. The development of Vista has been a tale of pushed-back launch dates, redesigns and struggles with backwards-compatibility. And it's not like the current version of Windows has inspired universal acclaim and appreciation (when was the last time the guy in the cubicle next to you cried out "God, I love Windows!" sans irony?). Meanwhile, an iPod-invigorated Apple offers Intel-based machines capable of running Mac OS, Windows and Linux, while ultra-cheap Linux-loaded laptops are available from the likes of Wal-Mart.
Microsoft's response, as revealed by this pricing, is nothing less than the full, heartfelt yawn of a monopolist. The above so-called competitive threats have put nary a dent in Microsoft's stranglehold on the desktop OS market, and despite oft-blogged doubts regarding Vista (the Aero interface is said to consume processor power with gusto), Redmond seems convinced the world will simply swallow its latest offering with all the docility of grazing sheep. Given consumer behavior up to the present, it's not like Redmond's assumption lacks foundation.
Now if only they'd offer an Aero-enhanced version of "Clippy"...

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July 31, 2006

Intel Cuts AMD To Its (Dual) Core

Computers | Jul 31, 06

Prior to Intel's Core 2 Duo launch, the chipmaker dropped prices for many of its processors, an understandable move as the market got wind of a new and superior technology in the offing (see "Buy One Core, Get Another Half Off..."). Inevitably, the one-two punch of discounts on existing products and the anticipation of more advanced processors put significant pressure on Intel competitor AMD. Now, in the wake of the Core 2 Duo's actual launch, AMD has sharply cut prices across its Athlon 64 X2 line, and we're even seeing price drops for advanced FX processors.

The X2 cuts are nicely illustrated by this week's violent drop in the PriceSCAN.com Athlon 64 X2 Processor Index, which fell 25% last week. More downside action may be in the offing, as wholesale cuts said to be up to 55%, pass through to the market. In addition, in recent weeks even the FX line has seen markdowns. Consider the Athlon 64 FX 60 Dual Core, whose lowest vendor price on PriceSCAN has dropped by some 20% since the beginning of the summer (see below).

Time Period: 2/6/2006 through 7/24/2006
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

More impressively, this site's lowest price on the recently released, top of the line Athlon 64 FX 62 Dual Core just dropped from slightly over a grand last week to under $860 today.
Blog buzz on the Core 2 Duo's benchmark performance against comparable Athlons is very strong, and it appears AMD is trying to hang on to its hard-won market share by slashing prices. Coming weeks should tell us what premium today's market places on performance.

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July 11, 2006

Linux And Tiger And Leopard – Oh My!

Computers | Jul 11, 06

So bloggers are having a field day with the news that Apple will soon release Leopard, its latest operating system. That makes four Mac OS launches since the 2001 introduction of Microsoft's Windows XP. Meanwhile, Redmond's release of Vista (or Longhorn, for those who remember the early days of its long, torturous development) is now expected in early 2007.

To be sure, making an operating system ensuring back-compatibility with the software and hardware of the majority of computers on Earth is a tad more challenging then accommodating the needs of a 4% market niche for which you manufacture the platform. But as I noted earlier in "Why Schizophrenia On The Mac Is A Good Thing", the new Intel-based Macs are allowing the running of Windows via Apple's BootStrap, and Windows or Linux with the virtualization software of Parallels Desktop (which requires no reboot, unlike BootStrap). So Apple's buyers should be able to avail themselves of any of these operating systems and whatever features they sport, presumably including Leopard's rumored cool new multimedia and search offerings.
Now the Mercury News quotes a Piper Jaffray analyst as saying that Microsoft viewed BootCamp's introduction as simply meaning there are now more computers to sell Windows on. True, but BootCamp gives current Windows/PC users the option of buying a machine that lets them run their old software while introducing them to Mac OS's elegance and advanced features. Parallels Desktop does the same, and allows access to Linux stability as well. Add to this the introduction of web-based apps from Google and others, and some users may discover its Windows they can live without. Microsoft's dominance is of course still its to lose. But it needs Vista to come out soon, and, when it does, the Beast of Redmond had better bring it.

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July 10, 2006

What Price DVI?

Computers | Jul 10, 06

Last week I told you about a cheap way to loose yourself in cyberspace. Yet the monitor in question lacked a DVI connection, quite possibly damping your high-definition euphoria.

Now it's often difficult to determine the market price for a specific feature of a tech product. Since different products generally differ from each other by more than one factor, simple subtraction fails to value any one characteristic. But here's an interesting exception. Thomas Salvey here at PriceSCAN.com points out that ViewSonic's 19 inch VA1912wb Widescreen Black LCD monitor has features very similar to the 19 inch Acer AL1916W featured in our previous blog entry ("Spending More Time In Front Of Your Computer Now Cheaper, Easier On Eyes") including 300cd/m2 brightness and a 500:1 contrast ratio. The key difference is that the ViewSonic has both HD15 and DVI connections, while the Acer only allows HD15. ViewSonic's model is going for as little as just under $200, about a $15 premium to the Acer and about 33% less than its price at the end of last year.

Time Period: 12/12/2005 through 7/3/2006
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Now no comparison is prefect, and indeed, the ViewSonic also sports a slightly higher native resolution of 1440 x 900 versus 1400 x 900, so some of those extra dollars may buy a few extra pixels. But I doubt either the slightly higher resolution or the difference in manufacturers accounts for much of the price spread. If you're willing to spring for an extra fifteen bucks, you'll get a name-brand monitor with a bit more resolution and more connection flexibility.

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July 6, 2006

Spending More Time In Front Of Your Computer Now Cheaper, Easier On Eyes

Computers | Jul 6, 06

Hey, why go outside or hang out with friends and loved ones when you could be peering into the soulless, synthetic glow of a monitor? But where to find an inexpensive, quality liquid crystal display in which to loose yourself in a pixelated miasma of spreadsheets and Everquest? At PriceSCAN.com, we’re here to help.

Check out the 19 inch Acer AL1916W. Right now, high-rated merchants on our site are offering the model for less than $185, a remarkable price considering that in March it was going for more than $250.
Time Period: 3/13/2006 through 7/3/2006
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

This monitor should provide a crisp, brilliant image, given its native resolution of 1400 x 900, 300cd/m2 brightness and a 500:1 contrast ratio. The AL1916W features HD15 video connectors and a response time of 8 milliseconds, which still represents a greater period than some people can stand to be away from their virtual worlds.

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June 15, 2006

Why Schizophrenia On The Mac Is A Good Thing

Computers | Jun 15, 06

Now that the beating heart of a Mac belongs to Intel, there's a new piece of software that allows you to run Windows or Linux on a Mac that's simultaneously running Mac OS X. It's called Parallels Desktop, and the Wall Street Journal just gave it a fairly positive review, noting its ease of use. There's no need to reboot and run one OS at a time; Windows or Linux just runs in a window on the Mac OS X desktop. Though the "virtualized" operating system runs a bit slower than it would if run solo a la BootCamp (see “Windows On A Mac – The End Is Near”) it's still said to be as fast as Windows on many Windows machines. Available from Parallels, it costs only $79 (BootCamp is free from Apple).

It's interesting to contemplate what this might mean for the marketplace. If the Mac is now truly a full-blown Windows computer that also offers the pleasures of OS X, there's really no reason for traditional PC buyers not to consider Apple's product. The Journal focused primarily on the Windows angle, but the potentially seamless use of Linux on a Mac only strengthens this argument (readers of this blog will recall I argued for running Linux on the Mac in the blog piece mentioned above). Further, Apple's traditionally higher price point, long a barrier to acceptance, has now fallen to the point where Macs are very competitive with other value-added design machines (see "Apple Cool Selling At Surprising Discount To Sony Style").
Cupertino has been historically weary of embracing non-Apple operating systems on Macs, but with the substitution of Intel chips for PowerPCs, that attitude was bound to wane. Indeed, Windows and Linux users, now able to run their programs on a Mac, may now find themselves drawn to these machines by Apple's styling and in the process discover what it is about the Mac OS that inspires such loyalty among a certain coterie of users. Apple and its Mac OS may yet find a way to increase market share beyond the relatively modest level of recent years. In any case, now there's certainly more reason to consider the Mac than the fact that it looks good connected to your iPod.

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June 6, 2006

Buy One Core, Get Another Half Off...

Computers | Jun 6, 06

...and then some, actually. Intel's bulk wholesale price cuts on its dual core line of processors took effect on May 28th, and we seem to be seeing its effects pass through to retail, as indicated by the PriceSCAN.com index tracking these processors.

Intel reduced the price of its Core Duo chips by as much as 33% in this recent move. With the new Core 2 Duo line of chips slated for release this summer, Intel's price cuts may be an attempt to clear inventory and address weak demand in the face of competition from AMD's low-power consumption offerings. Interestingly, Intel also announced significant price reductions for its older Pentium D, Pentium 4 and Celeron lines. These cuts take effect July 23rd and will be offered to all computer makers (as opposed to only the largest PC manufacturers) thereby potentially aiding "white box" players in their struggle with the likes of Dell and HP. The PriceSCAN.com index tracking Pentium D prices fell off sharply in late April, well ahead of this news, but has been relatively stable in recent weeks. Stay tuned as we move into July and August.

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May 22, 2006

Could Intel Gain Apple But Lose Dell?

Computers | May 22, 06

And things were going so well for Intel's dreams of bland uniformity. Even pesky Apple was learning to embrace sameness, finally placing a conformist Intel heart where PowerPC chips once resided, and putting out BootStrap to allow users to run XP on a Macintosh. (see "Windows On A Mac – The End Is Near") Remember those early Mac ads with a hammer-wielding rebel defying Orwellian tyrany? Seems Cupertino has learned to love Big Brother.

But an unlikely player is starting to color outside of Intel's lines. On Friday, Dell announced it will start putting AMD's Opteron chips in its multi-processor servers, apparently in a reach for higher performance. To be sure, this change effects only a small part of Dell's business, and while the firm didn't rule out placing AMD chips in its PCs, it made clear its commitment to use Intel chips in the majority of its machines for the foreseeable future. However, this isn't Dell's first flirtation with AMD, as its acquisition of high-performance game machine specialist Alienware gave the company a line based on AMD chips. ("Maybe They Could Make The Little Alien Head With The Glowing Eyes Look Like Michael Dell").
Having alternatives for microprocessors couldn't hurt Dell in any price negotiations with Intel. And in a world of commoditized computers and increasingly compressed margins, Dell may be looking for ways to distinguish its products – after all, Michael Dell himself recently expressed interest in giving users the option of running OS X on his products.
Then again, maybe Steve and Mike just can't play together, at least when it comes to using the same chips.

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April 7, 2006

Windows On A Mac – The End Is Near

Computers | Apr 7, 06

To devotees of the cult that is Apple, the idea of running Windows XP on a Intel-based Mac must seem a bit like taking a dry-aged porterhouse and smothering it with Cheez Whiz. Hey, even the transition to Intel chips was anathema to some purists, but the fact is that Cupertino's new openness toward the Beast from Redmond may turn out to be a strategic coup.

Virtually all computer users have acquired some familiarity with the Windows operating system, albeit sometimes against their will. Those who have chosen to follow the Mac path are unlikely to abandon OS X just because they can now run some Windows apps that are unavailable for Tiger. The BootCamp software that allows Windows to run on Macs is more likely to persuade current Windows users to consider switching to Apples. After all, they've been immersed in the iPod-fueled culture of Jobsian cool for years now. What's been holding them back but the high price of the Mac and the fact that their Windows-based software won't run on it, making the switching cost even higher.
Now, Windows Vista's consumer release has been pushed off into 2007, and reportedly the need to maintain back-compatibility is a main reason for the delay (see “Looking Backward, Dark Vistas”). Meanwhile, OS X already offers many of Vista's promised advanced features. With BootStrap, the Mac can run those Windows applications (by booting up with XP) that Microsoft is struggling to make work with Vista. What better time to make the transition to the Mac as painless as possible, and what better way than to render the new Macs platforms that preserve the usability of Windows apps? And if Apple can increase its market share from its current, relatively paltry 3%-5% level, more developers are likely to offer Mac versions of their software.
None of this is going to bring down Bill Gates' empire, and it's not clear how many Windows users will pay a premium for a Mac, even if it can run XP. But BootCamp could allow Apple to make a dent in Microsoft's hegemony, and its introduction suggests interesting strategic options for both firms. If making XP-compatible software run on Vista proves an intractable problem, Microsoft might steal a page from Apple and facilitate running both operating systems on the same machine, letting users keep their old programs while transitioning to Vista apps. As for Apple itself, its duel OS strategy is unlikely to allow it to make much headway into the world of servers, now dominated by Windows and Linux. Of course, OS X does have that Unix-like kernel, and there's all that enterprise software written for Linux....
Perhaps its time for Cupertino to think about compatibility with one more operating system. After all, as anyone who's ordered a Philly cheese steak know, if you're going "with whiz", you might as well throw on some onions.

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March 30, 2006

OK, We Promise To Play Nice And Stop Litigating - Now Please Put Down That Treo

Computers | Mar 30, 06

Seems that Palm may have benefited big time from RIM's recently settled legal dust-up with NTP over the technology behind the BlackBerry. The Wall Street Journal says that, in the quarter ended last November, Palm's Treo sales nearly matched new Blackberry accounts, and that Palm executives privately expect Treo purchases to pull ahead of Blackberry by the end of the year.

Of course, much of Palm's recent success moving Treos took place before the settlement, when there was serious fear out there that RIM's pocket-sized heralds of e-mail joy might be silenced by a judge's gavel. With that risk eliminated, will the demand for Treos slack off, or did all that legal wrangling open a window of opportunity through which Palm successfully showed consumers the benefits of its product? Palm has made some smart moves, offering free 45-day trials of the Treo with Good Technology's wireless e-mail service. Some customers, notably potential corporate buyers, may have taken a second (or maybe first) look at Palm's SmartPhone. And the Windows version of the Treo works with RIM's BlackBerry Connect software, providing the kind of compatibility that might help break the "lock in" effect of the BlackBerry's wide acceptance. Some may still feel that the messenger cum phone combo is kind of a brick, but it does eliminate the need to carry an extra gadget around. Whether all this is enough to get users to abandon the little gizmo that for so long has lovingly screamed for its missives to be read (see Palm Embraces Windows For Treo, But Still Lacks Blackberry's "In Your Fact" Factor) remains to be seen.

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March 29, 2006

Big Panasonic Plasma At Sharp Discount To LCD

Computers | Mar 29, 06

When it comes ringing up big numbers on the home entertainment cash register, there used to be few items that said "ka-ching!" louder than a big-screen plasma television. However, the products of two of the handful of manufacturers of screens at the rarified 65" size are displaying an interesting price relationship. Sharp's new LC-65D90U AQUOS Widescreen 65" LCD screen is selling at a considerable premium to Panasonic’s TH-65PHD8UK, the most popular plasma of the same size on PriceSCAN.com. It's worth noting that the Sharp has 1080p resolution, as opposed to 720i on the Panasonic. Now I'm not sure how much this means to the viewer who does not have the visual acuity of a peregrine falcon, and that goes for the plasma fans argument that their screens possess truer blacks than LCD. What is easier to see is that right now Panasonic's plasma is selling for a drab over $7,500, whereas Sharp's LCD is going for well over twice that.

Now we have seen some significant drops in the price of certain top-line plasmas, as exemplified in the graph of the Panasonic in question (below). We've also seen the withdrawal of Sony, formerly a major player in plasmas and now banking on other technologies. Panasonic, by contrast, seems to have increased its bet on plasmas. Look to see how long its price advantage holds as we move forward into a world of big LCDs.

Time Period: 9/19/2005 through 3/20/2006
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

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March 28, 2006

Maybe They Could Make The Little Alien Head With The Glowing Eyes Look Like Michael Dell

Computers | Mar 28, 06

Dell's recently announced acquisition of Alienware marks an interesting departure from the computer-as-commodity model the firm helped create, and within which the entire industry has been attempting to find a way to preserve margins. The firm itself has been experimenting with "value-added" design, and says it has sold out its limited edition $9,900.00 XPS 600 Renegade, a machine aimed at gamers that comes with a 30" screen, NVIDIA Quad SLI multi-GPU technology and a "True Fire" decorated case by Mike Lavallee of Killer Paint. The price point on such flame-embossed models might be just a smidge too high for the mass market, so enter Alienware, a brand loved by the game set and other consumers of high-performance graphics machines.

An indication of Dell's desire to prevent its generally rectilinear design aesthetic from infecting its new acquisition may be the announcement that Alienware will be run as a stand-alone enterprise with its design team kept intact and in place. Of course, Alienware's approx 200 million in revenue is so dwarfed by Dell's 55.9 billion top line that Reuters quoted a Dell spokesperson as calling the acquisition "financially immaterial". Alienware has always been a premium brand, and it's not clear yet to what degree Dell's marketing muscle can expand sales of so costly a set of computers. Perhaps Dell can bring economies of scale to Alienware's production, lowering prices and expanding sales. But Alienware's new owner would have to do this without ruining the brand's identity, as a member of Alienware's elite gaming clientele may not welcome the news: "Dude, you're getting a Dell!"

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March 27, 2006

Looking Backward, Dark Vistas

Computers | Mar 27, 06

An article in today's New York Times suggests that delays in the release of Microsoft's new Windows Vista operating system are largely attributable to Redmond's desire to maintain backward compatibility for software supported by earlier versions of Windows. This strategy is contrasted with that of Apple, which has a long history of having new versions of Mac OS not support applications developed for older vintages of that platform. This allows Jobs & Co. to be more nimble, offering new features (like 3-D graphics in OS X, for example) without having to worry about preserving the installed base's ability to run older programs.

Missing in this analysis is the downside of telling one's customers they should start using their legacy software backup disks as doorstops. For those who use their computers for more than the occasional game of EverQuest, making sure that "old" office suite or design software still works is a matter of no small economic moment. This is all the more true for proprietary business or research apps. That Cupertino doesn't dominate the market might just be related to the fear that one might have to chuck a significant investment in time and money on the whim of a guy in a black turtleneck who turned down his iPod just long enough to declare your corporate IT environment not cool enough to be supported by his latest insanely great new product. Indeed, had Apple taken the place in the market Microsoft currently occupies, capriciousness might have been added to the familiar sins of the near-monopolist.
To be sure, if innovation proves too difficult under Microsoft's policies of backward compatibility, then Mac, Linux and even Google's web-based computing might well be the beneficiaries. New features offered by competing technologies will become compelling enough to prompt abandonment of legacy apps as the current Windows ages. Likewise, should Microsoft itself abandon backward compatibility and therefore place buyers in the position of picking their computing platform de novo, then the firm's longtime customers (captives?) may feel free to choose other technologies based on their specific features, eroding Redmond's vaunted market share. However, if maintaining Microsoft's current strategy just means consumers must wait until Microsoft's current target date of January 2007 to buy Vista (an enterprise version is slated for a November 2006 release), I have a feeling many will judge keeping their old applications worth a few months of delay.
In any case, with the consumer version of Vista delayed, demand for new machines may prove softer than many had hoped for. Retailers and manufacturers have been given enough of a head's up as to let inventory management allow for this disappointment; still, look for some computer price weakness as we proceed through the year and into the holiday shopping season.

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March 24, 2006

Samsung Wants To Make Your Notebook Lighter, More Energy Efficient, And, Oh Yeah, More Expensive

Computers | Mar 24, 06

Samsung is touting a new NAND flash-memory chipset for notebook computers, which, with its 32 GB storage capacity, is meant to replace the ubiquitous hard drive. At fifteen grams, its less than a third of the weight of a hard drive, and of course flash uses a lot less juice than spinning a disk, so the new technology could extend battery time between battery charges.

However, the Wall Street Journal is reporting that Samsung intends to market this chipset for $200-$250 in 2008, while even today hard drives with twice the capacity are available for around 25% of this price. So you'd be giving up a lot of storage and green to save those extra grams, and current laptop batteries can already get you through a transatlantic flight filled with the joy of spreadsheets and Word documents. The value proposition here may not be compelling enough to get laptop manufacturers to dump their hard drives in a flash.

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February 23, 2006

Hackers To Apple: No More Hiding Behind Your Puny Market Share

Computers | Feb 23, 06

There was a time when the Mac faithful could console themselves that there was safety in their iconoclastic choice in computing platform. As part of only five percent of the market, there just weren't enough of them to attract the attention of hackers, a point even the Pentagon was said to take into account in its choice of servers. But having a Tiger on your hard drive may no longer guarantee your security.

This week, three different worms were discovered boring into Apples, including one specifically targeting iChat, as well as a zipped graphic e-mail attachment and one that zeros in on a Mac's Bluetooth connection. Why the sudden interest in tormenting Cupertino's loyalists? Maybe the rise of another Apple product with far more formidable market share (and perhaps more importantly, mind share) has something to do with it, that being of course the iPod. While not all iPod users have Macs, a great many Mac users have iPods, and messing with the machine on which those iTunes are accessed and backed up may now be too tempting a target to ignore. And now that the iPod has reminded the world that the Mac OS exists, perhaps that operating system's architecture will make it attractive prey, given that it's built around the Unix kernel that old-school crackers know so well. So, oddly, even those Mac users who've never listened to music on little white earbuds may wind up paying a price for the ubiquitous iPod.

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January 18, 2006

Apple Cool Selling At Surprising Discount To Sony Style

Computers | Jan 18, 06

Apple has long been know for charging a hefty premium for its computers, and while this may have cost it market share, Mac fans have gotten more for their money than merely the use of a one-button mouse. Macs are arguably some of the most innovative and attractive examples of modern industrial design. While the Dells of this world crank out commoditized, port-bristling bricks only the Borg could love, few companies have been willing to challenge Cupertino when it comes to selling sleek. One exception has been Sony, whose VAIO line has been a welcome oasis of flair in the aesthetic desert of the Wintel world.

Given Apple's rep for costliness, however, it may come as something of a surprise to learn that the new Intel-based Macs are priced slightly below comparable VAIOs. For example, compare the all-in-one (computer integrated with LCD display) 20" display iMac with the 20" VAIO VA10G TV-PC. Merchants on PriceSCAN.com currently price the VAIO as low as $1,898.88. It comes with 1024 MB RAM and a 256 MB of VRAM video card. If we configure the iMac with these same features we find it’s currently priced at $1,874. There are differences; the VAIO has a 3.0 GHz Pentium 4 processor versus the slower clock speed but dual core 2GHz Intel Core Duo processor of the iMac (Which is faster? – it may depend on the app. See 'Core Wars'). The iMac has a higher resolution display: 1680 x 1050 versus the 1366 x 768 of the VAIO.
So what have we learned? Now that Apple has dropped the IBM/Motorola produced PowerPC chip in favor of Intel, the so-called Apple premium has dropped to the point where Macs are priced at or below similarly outfitted high-design competing machines. There is still a style premium – both Macs and VAIOs are substantially more expensive then, say, Gateways with similar features. But it appears that there was a significant added price to be paid for the presence of PowerPC processors in Macs, and that is a cost Apple buyers need no longer bear. Further, it appears there is little premium or discount associated with the choice of either the Windows or Mac operating system, so you can be a (stylish!) one or two-button person for about the same price.

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January 3, 2006

But We Feel So Empty Without Intel Inside

Computers | Jan 3, 06

Intel greeted the New Year with the announcement that it's doing away with its logo and "Intel Inside" motto. Apparently, the chip titan feels that raising the "e" in its name constitutes some sort of superior defensive posture against AMD, perhaps like when a cat arches its back (?) In addition, the new slogan "Leap ahead" is meant to make us think of Intel in terms of consumer electronics, rather than just computers. You see, microprocessors simply dwell "inside" laptops, but they "leap ahead" in home entertainment systems.

To be sure, Intel still intends to remind you that something they make is inside your machine. Its low power single and dual-core Yonah chips will be marketed as "Core Solo" and "Core Duo", respectively, and manufacturers participating in Intel's co-op ad program will mark machines sporting these processors with stickers declaring "Core Solo (or Duo) Inside". This raises interesting questions for the maker of iPods, which still produces the occasional computer and is switching to Intel chips. Are co-op ad dollars enough to get Steve Jobs to use a label stating that Intel makes the "Core" of his Apple?
More disturbing than the apparent idiocy of adults worrying about the altitude of a letter in the name of what is arguably the most important computer company in the world is the possibility that the leaders of that firm are right to sweat that formerly sagging character. How much Intel's past success was actually driven by ads featuring Blue Man Group and guys dancing around in clean-room bunny suits? Still, raising performance decisively above that of the competition still counts for something, and one suspects that to claw back its market share, Intel will have to get up more than just its "e".

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November 17, 2005

Sony Decides It Needs More Fiber

Computers | Nov 17, 05

The laptop business has become exceedingly competitive, with the machines themselves becoming increasingly commoditized. In such an environment, if a manufacturer wishes to have any more than a razor-thin profit margin it has to find some way to distinguish its products from its rivals. With the various computer makers using nearly identical microprocessors and memory, style and design become make or break factors. For some manufacturers this has meant the packaging of their laptops in sleek, lightweight cases, which is where Sony's new VAIO TX series comes in.

The TXs are Sony's line of light, multiple wireless-mode machines. The lack of heft comes from a carbon fiber and carbon composite case, allowing Sony to pack a remarkable number of powerful features into a less than three-pound machine. For example, the top of the line Sony VAIO TX670P/B has a 1.2 GHz Pentium M processor, 1024 MB of RAM, a 60 GB hard drive, DVD-RW, modem, 10/100, bluetooth and 802.11 b/g wireless connectivity, and an 11.1 inch XBRITE display. Its also offers WAN via the Cingular EDGE network. Yet it's only 2.8 lbs in a 10.7"x 8.83"-1.12"x 7.7" case, thanks in part to that high fiber content. Equally remarkable is the fact that while the TX670P/B is quoted at $2,599.99 on the Sony site, there are currently vendors on PriceSCAN advertising this machine at less than $2,390. Only time will tell if this increase in fiber content can make Sony's earnings more, er, regular, but given their sleek, lightweight design, the VAIO TX series might convince you that fiber does in fact belong in more than your bran muffin.

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October 8, 2005

Cheap "Pre-n" Routers Could Let Your Neighbors Jump Your Bubble

Computers | Oct 8, 05

That title may sound like the punch line of a Paris Hilton joke, but jumping a Wi-Fi bubble refers to accessing someone else's wireless router. The introduction of so-called "pre-n" routers allows the creation of Wi-Fi bubbles covering a quarter-million square feet, and it may surprise you to learn some people don't have homes that big. So, without proper precautions, your neighbors could be enjoying free Internet connectivity, courtesy of you.

Such range is made possible by so-called "multiple in, multiple out" (MIMO) chipsets, which process several radio signals simultaneously, helping to eliminate the corrupting effects of multiple signal path interference. The "pre-n" designation refers to the fact that these products have been released prior to the establishment of the IEEE's next generation 802.11n Wi-Fi standard (for those not up on the party scene, "IEEE" stands for the Institute of Electrical and Electronics Engineers).
But what's of particular note right now is the recent drop in the price of supplying your whole neighborhood with Wi-Fi. For example, as can be seen from the PriceTrend Graph below, Belkin's Wireless Pre-N Router would have run you $130-$175 at the end of last year, but today its going for around $90.

Time Period: 12/13/2004 through 9/26/2005
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

This router features the Airgo Networks MIMO chipset, and you'll need a Pre-n network card, such as Belkin's models for notebooks, and desktops in order to use it.
Now the 802.11n standard isn't slated for establishment until at least the year after next, but perhaps its approach is contributing to this "pre-n" price decline. Be that as it may, with this kind of range you might consider enabling security when you set up your Wi-Fi, unless of course you're one of those altruistic types who wants to give your fellow human beings the gift of bandwidth – and perhaps all your personal data as well.

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September 22, 2005

Lenovo Selling Style At China Prices

Computers | Sep 22, 05

When Lenovo purchased IBM's personal computer division, there was considerable discussion about the effect lower Chinese production costs – the so called "China Price" - might have on the market (see Can Dell Compete with the China Price?) and indeed the new firm has been quite price competitive (Laptops at China Prices).

Now, however, Lenovo is raising the stakes by offering something other low-cost makers are not known for – design. Lenovo's new Titanium IBM ThinkPad Z series offers the kind of styling one associates with Sony or the old Apple Titanium machines, but at a fraction of the cost. To be available next month, these models feature fully integrated Verizon Wireless Braodband (an extra monthly fee applies), fingerprint recognition biometric security, gigabit Ethernet connectivity, ATI Radeon X300 enhanced graphics and Intel Celeron M processors. The Z60m is a 1.5 GHz, 15.4" widescreen model, which at 1.4" thick and 6.6 lbs is still fairly modest in size, while Lenovo claims the 1.4 Ghz Z60t, with its 14" screen, 1.1" thickness and 4.5 lb weight is the lightest machine in its class. And of course both have that cool scratch-resistant titanium case. Perhaps most impressively, the Z60m and Z60t are to be released at just under $800 and $1,100, respectively. Models with the Pentium M processor will also be offered, but for several hundred dollars more. Still, a lot of notebook – and style – for a very modest price.

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August 24, 2005

Are Falling Handheld Prices A Sign Of PDA Obsolescence?

Computers | Aug 24, 05

There's been a lot of talk about the PocketPC and Palm PDA market getting squeezed out of existence. These handhelds are under pressure from Blackberries and multi-function cell phones on the one hand, and low-cost notebook computers on the other. Now if this is the case, one might expect to see significant and rapid price cuts in the PDAs, and in fact there is some evidence of this effect.

Consider the most popular PocketPC on PriceSCAN.com, HP iPAQ HX4705. This WiFi and Bluetooth enabled model has seen its lowest offered price on this site fall by about $100 since January, a decline of nearly 20%.

Time Period: 1/17/2005 through 8/22/2005
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Interestingly, the HP iPAQ H6315 Pocket PC - Phone Edition saw an initial price drop last year but has displayed some price stability of late, so perhaps cell capability offers some hope to this line.

Time Period: 8/9/2004 through 8/22/2005
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Meanwhile, on the Palm side, we're also seeing some price slippage – see the graphs of the palmOne Tungsten E2 and Zire 31 below.

Time Period: 4/18/2005 through 8/22/2005
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Time Period: 5/3/2004 through 8/22/2005
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Of course much of this could simply be yet another aspect of generalized tech deflation. But even if old-style PDA functionality will truly be subsumed by other technologies, for those looking for a handheld today, the bargains are multiplying.

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June 16, 2005

Can H-P Keep Printing Money With Ink Cartridges?

Computers | Jun 16, 05

Hewlett-Packard’s decision to separate its computer and printer division is the latest sign of the firm’s unwinding of the strategies of former CEO Carly Fiorina, and has led to much speculation as to the fate of the enterprise created by H-P’s acquisition of Compaq. Yet if the move highlights a failed computer strategy, it also makes clear that the crown jewels of H-P's empire are to be found in its printer business.

Now what’s interesting about this fact is that while the price of printers has fallen dramatically in recent years, the price of ink has actually gone up. According to a 6/14/2005 Wall Street Journal article, the price of ink per milliliter in name-brand cartridges has risen about 1% per year. As can be seen from the graph below, even the lowest vendor price on PriceSCAN for the most popular H-P ink cartridge (the HP C6656AN #56 Blank InkJet Cartridge) has barely declined during a period of nearly three years.

Time Period: 8/19/2002 through 6/13/2005
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

It therefore not surprising that the key to H-P’s printer profits (constituting over 66% of the firm’s earnings) is not in the machines themselves bit in the sale of ink cartridges. However, therein lies a threat to the firm. Recently, many independent providers of cartridges and cartridge refills have emerged, offering ink at steep discounts to the prices charged by H-P, Lexmark and others. These include retail chains that specifically cater to refill needs. In the afore-mentioned Journal piece, the paper found these ink products generally OK, but not quite up to the quality level of H-P. There’s also a point the Journal did not mention, which is that the use of an ink not made by the printer manufacturer generally voids that company’s warranty on the printer.

Yet as printer prices fall, and thus the potential risk of loss due to a voided warranty is diminished, one wonders what will happen to the ink profits of H-P and others, especially if third party ink quality improves just a bit more. I’d like to invite readers to post any experiences they may have had with replacement cartridges or refills – it would be interesting to hear what PriceSCAN users think of these products.

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June 14, 2005

Falling Computer Prices Hold Down Inflation

Computers | Jun 14, 05

Our regular readers know this blog has chronicled a marked decline in the price of many cutting-edge technologies. With today's May Producer Price Index report from the Commerce Department, we get an interesting perspective on how dramatic this fall has been and what effect it's having on the overall inflation rate.

The overall PPI fell 0.6%. That was mostly due to a big decline in energy prices (-3.5%), and indeed, excluding the volatile food and energy sectors, the so-called core PPI rose 0.1%. And that's where tech prices come in. Computer prices were a key factor holding the core rate to this relatively benign level. They dropped in May by a stunning 4.8%, their biggest decline since January. What's driving this plunge? Candidate market forces certainly include low foreign labor costs and the commoditization of computers – Lenovo's purchase of IBM's PC business comes to mind, for example (see Laptops at China Prices and Can Dell Compete With The China Price?). There's more to this tech deflation, however. Despite significant increases in processor speed and abilities (i.e. hyperthreading and dual-core multi-thread architectures – see Core Wars) there have been few new applications introduced that demand these new hardware capabilities. Most of the software that does require such horsepower is in niches like gaming and workstation apps. Without innovative applications to motivate buyers, demand tends to be limited to that produced by overall economic growth and simple lifecycle driven unit replacement. The industry has been hoping for relief from Redmond, but the way Microsoft keeps pushing back the release date for its new operating system (code named Longhorn), one wonders whether we'll see a new Ice Age before it shows up, and I don't mean a sequel from Fox.
Looked at over the last few months, overall pricing data is a bit less friendly, and the markets and the Federal Reserve will likely continue to contend with the risk of accelerating inflation. Those interested in buying computers, however, are enjoying a happy state of affairs, as a casual inspection of the prices in our computer category will attest.

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June 8, 2005

Can Intel Help Apple Close Its Price Gap?

Computers | Jun 8, 05

Most of the press on Apple's recent decision to switch from chips made by IBM (in partnership with Motorola) to Intel's x86 line has been discussed in the context of Cupertino's desire to obtain processors that run faster and cooler (the heat problem has been particularly acute for PowerBooks, limiting the speed Apple can offer). Yet perhaps the larger impact may be on the traditional premium Mac users have had to pay to stay out of the Wintel world. To understand just how steep the price of Intel-comparable Apple performance has become, consider that the price of a top of the line PowerBook G4 with a 1.67 Ghz processor, 512 RAM, 100 GB HD, DVD-R drive, modem, 100 BT/802.11g connectivity and 15.2 inch active matrix display is at least $2,250, whereas the Toshiba Satellite M45-S351 with a 1.73 GHz Pentium M, a 15.4 inch active matrix display and comparable other stats goes for a relatively paltry $1,280. To be sure, the PowerBook commands a design premium – it comes in a sleek chassis and weighs only 4.6 lbs compared to the only slightly faster and larger-screened Satellite's 6.5 lbs. But is that design difference worth a grand?

Now, Apple will no longer be buying a niche processor, but rather building their machines around the more commodity-like Intel product. By purchasing x86 processors, Apple should be able to avail itself of Intel's production economies of scale. This should reduce Apple's costs and allow it to lower prices, even accounting for some design premium (hopefully they can switch notebook processors without increasing weight).

In the past, Steve Jobs has had something of a deaf ear when it comes to what price point the market will find acceptable. You know what I mean if you recall the Lisa and Jobs' proposed pricing of the first Macs, not to mention the NeXT machine. Lately, however, he's been spot-on in gauging how to position the iPod, and the rollout of the Mac Mini shows an obvious new interest in low price machines. Apple may even be looking down the road to devices to compete with the IBM-based Xbox. The real question is whether Jobs will choose to pass on his savings on processors to the consumer, sacrificing per unit margin to market share.

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June 7, 2005

Core Wars

Computers | Jun 7, 05

The battle for dominance in the emerging dual-core processor market was joined a few days ago when AMD started sending out test versions of its new Athlon 64 X2, to compete with Intel's dual-core Pentium D and the dual-core version of the Pentium 4 Extreme Edition chipset released in April. Early buzz from reviewers seems to give much of the edge to AMD, but there's a catch for both. While generally faster than single-core processors when executing multi-threaded programs like some game programs and workstation applications, dual-core processors are actually slower than their single-core brethren for single-threaded applications. There is thus a real question as to how much migration from single-core processors can be expected with this generation of dual-core.

Often, we find that when a new technology is about to be introduced, the market anticipates that release and starts to discount the old state of the art. Thus, one clue regarding the future impact of the current version of dual-core technology might be found by examining the price behavior of state of the art single core processors. Consider the following PriceTrend graph of a single-core Intel Pentium 4 3.4 GHz Extreme Edition (which does support hyper-threading). As you can see, the lowest price offered by a vendor on PriceSCAN actually shows a slight, recent rise in price, so it appears that there is as yet little or no dual-core anxiety in what is still a single-core world.

Time Period: 6/21/2004 through 5/30/2005
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

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June 2, 2005

Google's Picasa 2 - A Free iPhoto Substitute For Windows, Not Macs

Computers | Jun 2, 05

We tend to focus on pricing issues in this blog, and there's no more interesting price than zero. Google just released Picasa 2, a free image management and editing package that indexes the photos and movies on your hard drive, puts them into a searchable database, and lets you make changes including red-eye and color adjustment, crops and orientation adjustment among others. In short, its feature set is similar to that of Apple's iPhoto, but so far Google has only released a Windows version. The omission of a Mac version is interesting – perhaps Google reasons that with most Macs already running iPhoto there's no point in making the investment to try to break into a user base that's already locked up. But the buzz on Picasa 2 is quite good – it's said to be very fast and considerably easier to use than iPhoto, so perhaps they should consider rolling out something Cupertino’s clientele could use. After all, many people buy Macs precisely because they view them as superior platforms for image and media work, and the zero price tag on Picasa helps knock down the barrier to entry.

It's also interesting to consider Picasa 2's effect on Adobe. While more serious enthusiasts might complain that Google's offering might not include all the editing functionality of Adobe Photoshop Elements 3.0, for example, it might well be good enough for users with basic needs, impacting Adobe's market share on the low end (e.g. Photoshop Album 2.0), and it is, after all, free.

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May 26, 2005

Laptops at China Prices

Computers | May 26, 05

Back on December 08, 2004, I reported on the Chinese firm Lenovo's purchase of IBM's PC business, and speculated on whether lower production costs might result in the so-called "China price" effect, impacting the margins of rival producers like Dell (see "Can Dell Compete with the China Price"). The jury is s