Netbook Revolution

The NYT Bits blog (much better than the regular, typically inaccurate NYT tech coverage) claims that soon, "netbook" laptops will be given out free with the purchase of your internet connection.

The rise of netbooks, a type of cheap, ultra-compact laptop, has helped spur Acer’s growth. Acer and its fellow Taiwanese PC manufacturer, Asustek Computer, have led the netbook market, while slower-to-act rivals waited to figure out if the products would enjoy wide interest.

In its fourth quarter, Intel reported a 50 percent surge in the sales of its Atom products, which go into netbooks, hitting $300 million in revenue.

The strength of the Atom chips, which tend to generate fewer profits than some of Intel’s other laptop chips, was enough to lower the average selling price of Intel’s chips overall.

The PC makers tried the light, compact laptop idea before with so-called ultra-mobile PCs. But it took better broadband connections, more online services and much cheaper PCs to really make the idea take off. Now the PC market may never be the same.

Broadband providers around the globe are expected to start giving away netbooks in exchange for commitments to wireless network services, Mr. Richard said.

Dell and similar companies are afraid to sell netbooks because they aren't as profitable. Hmm, where have I heard of that phenomenon before?