The cheap, sub-notebook class gets sub-classed… and more expensive

Hp_mini_noteI’m swamped today but happened to catch a little news in Google Reader after lunch. Is it just me or are the laptop companies trying to kill the newest sub-notebook market before it really hits critical mass? Don’t get me wrong: I love what was started by the OLPC and the Asus EEE PC. It just appears to me that folks are trying to cash in on it by maximizing profits in the early stages. Here’s what I’ve seen:

  • The OLPC was planned to be around $100 or so and turned into a $200 machine. 100% increase.
  • The Eee PC 701 was looking to be a $200 machine and quickly turned into a $400 purchase. Again, a 100% increase.
  • The 901 Eee PC offers a little more storage, slightly bigger display and higher resolution. $549 is the pre-order price on a device that shouldn’t require massive retooling from a build standpoint. Yet, the new features will cost you almost 40% more than the old model.
  • HP’s Mini is a nice machine that might have a wee bit more power than these competitors and it certainly has a beautiful screen and more usable keyboard. Based on the price, “you won’t even need to consider this purchase“. It starts at $499 and the highest-end XP model is just over $800. Who’s dropping $800 without blinking? Even at the mid-range, you’re looking at $600 or so… still not a “whim purchase”.
  • The MSI Wind is forthcoming as well: $610 is the pre-order price.

Each of these devices offers different feature sets, sizes and weights to be sure. It almost seems to me that folks are trying to create sub-classes of the sub-notebook class though. I also see prices trending up, not down. There’s cheap and functional and there’s expensive and faster. What happened to the $200 and $300 machines? Are the components truly driving the prices up or is the profit margins that are increasing?

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