November 25, 2008

Apple will launch netbook competitor in '09, says analyst

Slipping economy will force Apple to address a glaring omission in its lineup and roll out a lower-priced and lighter-weight laptop to compete in the growing netbook category

Apple will roll out a lower-priced and lighter-weight laptop in the first half of 2009 to compete in the growing "netbook" category, an analyst said today.

The slipping economy will force Apple to address a glaring omission in its lineup: the lack of a lower-priced laptop, said Ezra Gottheil, an analyst with Technology Business Research.

[ For more on products in the hot mini-notebook category, check out our hands-on looks at Asus' Eee PC 901 and 1000 and the N10 netbook, the Cloudbook Max netbook, Elitegroup's G10IL mini-laptop, MSI's Wind low-cost laptop, Giga-byte's M912X mini-laptop, HP's Mini-Note netbook and Acer's Aspire one. ]

"Apple is facing the possibility that as the economic news gets worse, that they're increasingly pricing themselves out of an important market," said Gottheil. "Economic conditions are accelerating this."

Apple won't compete directly with netbooks on price or form factor, Gottheil maintained, but will have to respond with something he characterized as an "entry-level notebook" that could compete with the $300-500 price tags of most netbooks. Currently, Apple's lowest-priced notebook is the older, white-cased MacBook , which the company retained when it unveiled new unibody MacBooks and MacBook Pros last month. That MacBook lists for $999, although Best Buy has launched a sale of Apple hardware that prices the model at $899.

Gottheil pegged the debut of a lower-priced laptop at sometime in the first six months of 2009, and said that the most likely price point would be $599. He based that on comments a month ago by Apple CEO Steve Jobs , who dismissed any desire to play in the netbook market as currently defined. "We don't know how to make a $500 computer that's not a piece of junk, and our DNA will not let us ship that," Jobs said at the time.

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