IBM posts strong Q4 profits, no layoffs announced

IBM on Tuesday reported fourth-quarter fiscal 2008 revenue of $3.28 per share, a 17 percent increase year-over-year, but said total revenues for the quarter dropped 6 percent to $27 billion.

Seagate offers free data recovery for faulty drives

Seagate Technology Tuesday is offering free data recovery services for customers who purchased the company's flagship Barracuda 7200.11 desktop hard drive through December 2008. A firmware bug in those drives has produced a high number of failures.

The evolution of the Netbook

It's getting harder to tell the difference between a Netbook and a notebook.

Except when you look at the bottom line of the companies making them. Though initially thought of as a way to sell cheaper, less powerful companion devices to notebooks, Netbooks are beginning to lose their distinction, as evidenced by the new Netbooks unveiled at CES 2009. While it's good for consumers, the blurring of lines between the two could potentially be destroying the business models of PC manufacturers.

Sony's Vaio P is dwarfed by HP's Mini 1000 Netbook.

(Credit: CNET)

That lack of distinction between a Netbook and a notebook will become more clear as soon as Windows 7 arrives on the scene, likely in the next nine to 12 months. Microsoft's new operating system is designed to work on Netbooks and actually may provide a good experience for users on relatively low-powered devices, unlike Vista. That calls into question the value proposition of the Netbook category if the same OS is available on what are supposed to be two different kinds of machines, according to Stephen Baker, vice president of industry analysis for the NPD Group.

"What does that do to our business model? Have we (just) traded $799 sales for $399 sales?" he asked.

And the timing isn't great. "The unfortunate aspect is we're bringing these products out in a recession, which is likely to mean it's harder to (sell) these as an additional PC and not as replacement for something else you're going to buy," said Baker.

For the past year, when a laptop had a screen smaller than 10 inches, an Atom processor, and cost below $400, we'd call it a Netbook. Starting from essentially zero market penetration in late 2007, by the end of last year, roughly 10 million Netbooks have shipped, according to IDC. They now account for 7 percent of all portable PCs, an extraordinary growth rate in a short time. But exactly how the category is growing is the big question mark.

"The market is multi-faceted," said Loren Loverde, PC analyst for research firm IDC. "You don't get growth along a straight trajectory, more like growth in an amoeba. It stretches out in different directions and grows and absorbs different things."

What is a Netbook?
At first there appeared to be a semblance of agreement on what made a Netbook different, and its own category of computer. Intel launched the category with its Atom processor, which promised less computing power, but for far less cost. One Laptop Per Child and Intel led the way with low-cost notebooks intended for developing nations. But Asus broke the category open for consumers in late 2007 with its Eee PC, at first equipped with a tiny 7-inch screen, little chiclet keys, solid-state memory, and Linux instead of Windows.

Much has changed since then. A year later we have almost as many interpretations of a Netbook as we do manufacturers. Dell defines Netbook differently than Sony, who sees the market in a way that Acer and Hewlett-Packard do not. (And Toshiba refuses to see any Netbook market at all--at least in the U.S.)

Acer and Asus essentially agree on what a Netbook is: a low-power notebook with a 9-inch screen with a price point between $300 and $400. They're not meant for much beyond connecting to the Web. Those two Taiwanese manufacturers were first to market and have been rewarded handsomely for their efforts, capturing the majority of Netbook market share early on. Acer has done particularly well in Europe.

In late summer, Dell, the largest PC maker in the U.S. and the second largest worldwide, threw its hat into the ring, apparently to defend its territory. The Dell Inspiron Mini 9 was a normal Netbook, but the subsequent Mini 12 was puzzling. By grouping it with the Mini line it's being sold as a Netbook, but the 12-inch screen size is bumping up dangerously close to smaller traditional notebooks. At just under $600, it also appears to compete with the $699 Dell Inspiron 15.

Each PC vendor is trying to mold the Netbook trend in a way that fits with their own product line. Companies like HP are trying to draw a distinction between Netbooks through software: The Mini 1000 MIE has a custom interface designed to hide the fact that it's essentially a Linux device. Sony's also putting its touch on the idea, with the Sony Vaio P Lifestyle PC, an expensive device not aimed at the masses.

By each company tweaking their Netbooks a little here and a little there in the name of differentiating and adding more features that consumers want or expect, they're basically creating something that looks like yet another notebook PC.

Windows 7 beta now available

Microsoft has apparently decided that it has enough server capacity and has made the code available for the Windows 7 beta.

I don't see a posting on the Windows 7 blog, but when I went to the Windows 7 page Saturday morning, I found the following message and was directed to this site to get the code.

"The Windows 7 Beta is now available for download," Microsoft said on its Web site. "Thanks for your interest and help with the beta."

The software was supposed to be made available on Friday, but the company delayed the release after a day filled with Web site problems.

Update: Microsoft offered up some recommended specifications for the beta, but cautioned those could change for the final release. It called for a 1GHz processor (either 32-bit or 64-bit), 1GB of system memory, 16Gb of disk space, support for DirectX 9 graphics with 128 MB memory, as well as a DVD burner and Internet access.

The software maker also cautioned users should have some technical skills, such as the ability to "burn an ISO file to make an install DVD. (A good example of what we mean by 'technical')." It also said folks should know how to install Windows (uh, yeah) and set up a network.

Furthermore, the company cautioned that the beta is not the quality one should expect from a final release. "It can be glitchy--so don't use a PC you need every day."