Monthly Research Update

Experton Group Weekly IT News

Notebooks Dominate!

By: Adam Braunstein

Notebook announcements from Dell Inc. and Lenovo Group, Ltd. include both subnotebook designs and workstation-class computers. Lenovo also announced favorable quarterly earnings.

Focal Points:

• Dell announced a range of new Dell Latitude and Precision business notebooks and features for a multitude of user types. Available on select models, one new feature is a "rapid on" operating environment, called Dell Latitude ON, which provides near-instant access to calendar, contacts, e-mail, and the Web by bypassing the main operating system. Dell Latitude ON uses a dedicated sub-processor. The new E6400 offers extended battery life of up to 19 hours using a long-life battery and energy-saving capabilities. Intelligent backlit keyboards are also available. New ControlVault security solution uses security sub-processors and embedded storage to centralize and protect user credentials and security keys in a hardened environment. Dell Precision M2400 and M4400 workstations can be optioned with memory up to 16 gigabytes (GB), random array of independent disk (RAID) redundant storage up to one terabyte of storage, and screen sizes up to 17 inches. Quad-core processors will also be available. On the ultraportable side, the Latitude E4200 and E4300 weigh 2.2 pounds and 3.3 pounds, respectively, and feature screens between 12.1 inches and 13.3 inches and size. The semi-rugged E6400 ATG will meet Military 810F standards for dust, humidity, and vibration.
• Lenovo announced two new notebooks this week, an ultraportable and a widescreen mobile workstation. The ThinkPad W700 widescreen mobile workstation offers the first built-in digitizer and color calibrator to help with accuracy and input for designers and photography professionals. The system can also be configured with up to 2GB of Intel Corp. Turbo Memory, 8 GB of memory, dedicated graphics, and RAID storage. Availability begins next month with prices starting at $2,978. Lenovo also announced an update to its ThinkPad X300, the new ThinkPad X301. The ultraportable uses new DDR3 memory to improve processing performance by nearly 20 percent, and provides Wi-Fi and wireless broadband options. WiMAX options will be available later this year. A 13.3-inch LED backlit display in addition to solid state drive (SSD) storage options of 64 GB or 128 GB help to round out battery life improvements. Availability begins on August 26 with prices starting at $2,599.
• Lenovo reported its quarterly earnings this month, posting revenues of $4.2 billion, a 10.5 percent gain over last year. Net income rose more than 65 percent from $67 million to $110 million. While Greater China remained the company's strongest market at 41 percent of total revenues, revenues in the Americas and Europe, Middle East, and Africa (EMEA) followed closely behind at 26 percent and 21 percent. Notebook shipments rose 33 percent above the same quarter in the prior year.

Experton Group believes sales of notebooks will continue to dominate the business and consumer markets, particularly as the price of lower-end notebooks and desktop PCs are within small monetary differences of each other. However, manufacturers will continue to push to stimulate sales in the mid- and high-end notebook markets where there is greater unit profitability. All the major notebook manufacturers are expanding their ranges of notebook PCs to include ultraportable and workstation notebook alternatives as desktop performance could only recently be matched with portable systems. IT executives should recognize that engineering and quality factor greatly into the total cost of ownership of notebook systems – even more so than with desktop PCs. IT executives must also ensure the promised capabilities, including security and reliability, can match expectations and requirements. Increased pressure across system offerings provides opportunity for IT executives to exert significant contract pressures.