Cheap computers and free Internet access fuel the phenomenon

Of course, you already can get online over cellphone networks for similar monthly fees and at similar speeds, with external or internal laptop cards that usually cost less upfront. So why would anyone want or need MiFi? The answer is that it serves multiple devices at once, without requiring you to buy multiple cards or pay a separate fee for each.

We’re in less of a consumer-goods business now. When you reckon about a DVD, it’s a package that’s been shrink-wrapped with a bar code on it. So physical distribution, keeping it in stock and having it showed well at retail outlets like Wal-Mart and Target is everything.

If it were only so simple as that, or as simple for one company to control. One complication is that Intel didn’t invent this concept; arguably the first system in this more-capable segment was the Hewlett-Packard dv2, which uses Advanced Micro Devices chips and was announced in January at a starting price of $699.

Cheap computers and free Internet access fuel the phenomenon. So does an increasingly computer-savvy population. Many job and housing applications must be submitted online. Some homeless advocates say the economic downturn is pushing more of the wired middle class on to the streets.

To get started with the W-Series Walkman, which has space for 2 GB of music, I plugged it into my laptop with the USB cord, dragged and dropped songs from iTunes onto the device, and was excellent to go. A certain bonus is that a mere three minutes of charging yields a full 90 minutes of Pavilion DV1200 battery life.

But the Verizon service is slower than many Wi-Fi connections, and it can be obtained for nearly any laptop by buying a plug-in card that carries the same monthly fees. In my tests, at a typical Marriott hotel, the Verizon cellular service achieved download speeds of around 1.6 megabits per second, while the Wi-Fi modem in the same PC got over five mbps.

Sean Maloney, an Intel executive vice Pavilion DV1000 battery president in charge of sales and marketing, noted that computer demand at the moment appears to be strongest for products sold to consumers. By contrast, demand for computers bought by companies — particularly PCs — remains weak, he said.

Perhaps the largest criticism of Intel’s performance in the last decade is its failure to diversify effectively. The company continues to make most of its money from sales of chips that serve as calculating engines for desktop and portable PCs and server systems.

Asustek in late 2007 launched the first so-called netbook, a simple, light-weight, portable computer that cost less than $250. At first dismissed by major computer makers as a toy, the Eee PC proved surprisingly well loved, making the first new category of PCs since the rise of notebooks in the 1990s.

The Studio One is handsome — bordered with cloth, wrap-around trim in red, blue, white or other colors. And its optional touch screen is a sexy feature, complemented by special Dell touch software called the Touch Zone. Perhaps its most striking attribute is price. You can get one for as small as $699, far below the $1,200 base price of the H-P TouchSmart.

But, there’s a catch to this low price. The $699 base model lacks the touch screen. That costs $100 extra. Also, all of the Studio One 19 models — even those configured to cost more than $1,000 — have a relatively small screen: just 18.5 inches. The base model of the H-P has a 22-inch screen.

Many of these cheaper PCs come with more memory or quicker processors than bargain PCs used to have. Toshiba America Inc. late last year tripled the amount of memory in its $699, 17-inch notebook, for instance. U.S. marketing chief Philip Osako says Toshiba also plans to increase the capacity of hard drives that come standard in its lower-end notebook PCs. Mr. Osako says the company will unveil new, low-priced mini-PCs for U.S. customers later this year.

Apple last week also made a bold business go to complement these new products. It chose to keep making the current model, the iPhone 3G, and to slash its price by 50%, to $99. That’s an unheard-of price tag for a pocket computer of this power and versatility, and gives millions of additional consumers a reason to choose the iPhone instead of a competitor.

Some analysts, meanwhile, worry that the thought of a dual Dell 1691P Battery-life reading will add more numbers for already-confused consumers to ponder in stores. “It’s going to be hard to convince anyone,” predicts Roger Kay, an analyst at Endpoint Technologies Associates. “If anything, stores are trying to reduce complexity.”

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