Internet speculation has suggested that Microsoft and others could try to control the booming netbook market by changing the specifications and prices. The rumors have Microsoft charging more for Windows 7 on netbooks with larger screens. But an analyst said that doesn’t make sense and Microsoft needs to offer an OS to keep netbook prices down.
![]() Staying Competitive Speculation has surfaced on the Internet that Microsoft may join with Intel to keep netbook screen sizes at 10.2 inches or less. Companies making netbooks with a larger screen might not be eligible for the lowest licensing rates when Windows 7 is released, the rumors say. As a result, devices with a larger screen might cost more.Despite a weakening of PC sales this year, 10 million netbooks were shipped globally last year, according to IDC. Microsoft dominated that market, with 90 percent of the netbooks shipped as of January running Windows XP, and it likely wants that to continue with Windows 7.When netbooks first arrived, Linux was a popular choice, something Microsoft could not allow to happen, according to Mikako Kitagawa, a Gartner analyst.”They were afraid of losing their share in the market,” she said. “So they decided to put XP Home edition at a really significant price for the netbook segment, but we really don’t know what their plan will be for this particular segment.”But she said it doesn’t make sense for Microsoft to shape the market with higher prices for larger-screen netbooks. “I think the overall trend is that Microsoft has to have some sort of operating system that will fit in a low-price segment so PC vendors can offer products below the $400 range; with a regular OS price, it is almost impossible to offer netbooks around $300,” Kitagawa said. Speaking of Windows 7 As Microsoft gears up to release Windows 7, it’s trying to make the transition for users smooth. But over the weekend, Microsoft tripped with e-mailed reminders that Windows 7 beta expires on Aug. 1.Users were told that if they were still on beta, they should move to a Windows 7 release candidate or Windows Vista because bi-hourly shutdowns would begin June 1. What Microsoft intended to say was that the bi-hourly shutdowns will begin on July 1, not in June as originally posted.”We apologize for the confusion and inconvenience this may have caused,” said Microsoft’s Brandon Leblanc in an official blog post.As for Vista, Microsoft has published links for downloading installers for Service Pack 2 for Vista and Windows Server 2008. It said the update will enhance performance, improve Wi-Fi connectivity, and support Blu-ray disc burning and Bluetooth 2.1. Microsoft has made both 32- and 64-bit versions available.Service Pack 1 is required before installing Service Pack 2, according to Microsoft. |