Hardware
Apple Preps Low-Cost Netbook: Analyst
Apple(AAPL) is preparing to launch a low-cost netbook-style computer that will provide users with Web access and email, according to a report from analyst firm Technology Business Research, a move that if confirmed could signal a subtle shift in the company's laptop pricing strategy.
The technology giant has not yet responded to a request from TheStreet.com for comment, although TBR believes the mini-laptop will debut at MacWorld next month and become available in mid-2009. According to TBR, the computer will come in two sizes, one like the MacBook Air and another similar to a netbook, with the smaller offering priced at $599. Apple, which typically keeps tight control of its pricing, has traditionally avoided the low-end of the notebook market. Instead, the company has constantly reiterated its focus on features rather than price. A low-cost, stripped-down netbook, however, could open the door to new revenue streams at a time when consumers are feeling the effects of the economic crisis. Crucially, Steve Jobs could also maintain pricing levels for the more expensive and feature-rich MacBook family. "It will open up new markets, including emerging economies, price-sensitive consumers, and those for whom all PCs, including Macs, are too complicated," wrote TBR analyst Ezra Gottheil in a research note released Tuesday. The analyst says that users should not see the launch as a cheaper Mac option, explaining that, from a systems perspective, it actually has much more in common with Apple's smartphones. Similar to the iPhone, the netbook's applications will be delivered through the iTunes App Store, wrote Gottheil, adding that this will make it easier for Apple to sell additional applications.TheStreet Premium Services
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