How many gadgets do you really want to squeeze into your suitcase with all the smartphones, laptops, netbooks, and mobile Internet devices available these days?
According to CEOs at the Reuters Global Technology Summit in New York, the answer appears to be two as reported by Reuters.
Internet devices
Executives agreed that even in a bad economy consumers are willing to prize open their wallets for both smartphones and netbooks, or slimmed-down portable computers.
“Something in the middle, if it becomes a third device you have to carry, I don’t know how that’s a greater benefit,” said Texas Instruments Inc TXN.N Chief Executive Rich Templeton, in response to a question about mobile Internet devices, which are smaller than netbooks but bigger than smartphones.
Pundits have long talked about device convergence, or gizmos with common functions, ultimately combining into one multimedia, entertainment and business gadget.
Now, device makers and wireless providers are keen to turn netbooks into the next big thing.
They argue they are lighter than laptops and cheaper, but have bigger screens than phones.
AT&T T.N plans to sell three netbook models at all its U.S. stores this summer.
“We have been saying integrated devices forever, and people still carry two devices,” Ralph de la Vega, head of AT&T’s mobile business, said.
Two devices
How many people can afford both a smartphone and a netbook? Operators like AT&T are heavily subsidizing netbooks, but only if their customers commit to a $60 per month service fee for two years.
The minimum monthly voice and data service fee for iPhone is already $70. Analysts are bullish on netbooks because they are a cheaper alternative to laptops.
At the same time, 2009 netbook sales are forecast to rise around 80% to 21 million units, even as the overall PC market is seen falling.
Bigger rival Verizon Wireless, a venture of Verizon Communications Inc VZ.N and Vodafone VOD.L, will begin to sell its first netbook from Hewlett-Packard HPQ.N on May 17.
“We have a lot of customers with multiple devices today…The netbook is like another arrow in the quiver,” Verizon Chief Financial Officer John Killian said.
“You have a totally new channel that’s selling these netbook PCs, which are a very powerful tool,” he said.
Carriers “Can drive subscription services and data services a lot better on a netbook PC than on a real phone.”
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Source: Reuters
