Intel behind high UMPC costs?

Wondering who to blame for high-priced UMPCs? According to "market sources" out of Taiwan, it's Intel -- and Asian manufacturers in the company's thrall. The story goes something like this: Microsoft really, really wanted the UMPC to be priced at around $700. And the company was all set to partner with VIA, which could have delivered the goods using its C7-M processor. However, manufacturers like Samsung and Asustek demurred, insisting that Intel, with its good name and R&D might, was the only way to go. That bumped pricing up to the $1,200 range, and soured the whole UMPC launch. Well, maybe. If that's the case, we still have to wonder why the VIA-powered TabletKiosk eo is going for $900. And we can't help but point out that both Samsung and Asustek have had no trouble spurning Intel before, pumping out AMD-powered computers when it suited them. Regardless, VIA may have the last laugh. Samsung is already planning a $700, VIA-powered UMPC for later this year, and if other companies follow, pricing for the mini-tablets may actually come down across the board. Whether that will goose demand enough to make this a solid product category is, of course, another story.

[Via TG Daily]

[nemi @ Apr 19th 2006 11:40AM]

These devices have to come down to ~$400.

For $500 you can buy a fully fledged laptop with DVD burner and goodies.

For $300 you can buy a VGA res. PocketPC with wifi and Bluetooth and 2-5 hour battery life.

I predict the mass producing laptop makers will come out with their own versions for much cheaper than the official UMPC.

They will take a Laptop PC ($500) take out the dvd-rw drive, use a smaller LCD (-$?) and underclock a stock laptop CPU (-$?) and you have a slightly bulkier rival for less than $500.

[RZ @ Apr 19th 2006 11:41AM]

As well as price and processor, I'll be looking for user-upgradeable hard disks...

[Udayan Tripathi @ Apr 19th 2006 11:44AM]

Question is... at $700 would you buy a UMPC?

[RZ @ Apr 19th 2006 11:49AM]

If the choice came down to a $500 new model video ipod vs. a $700 UMPC, I'd go with the UMPC for numerous reasons. That's the choice we may be facing.

[badnegro @ Apr 19th 2006 11:52AM]

@RZ

word

[PEZ @ Apr 19th 2006 12:22PM]

Use an AMD chip if you want them to come down in price. Start trh UMPC wars! WOOOOOOOOOOOOO.

[Layne @ Apr 19th 2006 1:29PM]

This is highly doubtful. Are we to believe that the price delta between Intel and VIA is $500? Too bad DigiTimes (the original source) does not cite their source.

[nayo @ Apr 19th 2006 1:37PM]

$1,200? for a mini-tablent no thanks i'd rather spend a few extra $$$ and get a full sized tablent, i'd like to see these in the same price range as the noka 770, its kind like the umpc,http://www.nokiausa.com/770?cpid=ILC-2001-507

[freepimpc @ Apr 19th 2006 2:19PM]

How about UMPC motherboards, cases and displays. Oh what fun! Come on VIA, motherboard please!!

[Dan @ Apr 19th 2006 2:21PM]

Considering that you can get a full sized convertible tablet for $999 from Gateway, and just a tad bit more from other vendors, the $1200 figure is more than ridiculous.

[Jeff Lewis @ Apr 19th 2006 2:55PM]

The people who are saying that a $1200 UMPC is ridiculous are quite correct - although I think they kind of missed the point of this article.

The original intent of the UMPC/Origami concept was to deliver a full function PC in a compact, rugged form factor designed to be used without a keyboard or mouse for around $500. However, reality meant that we would see them hit between $500 and $750, depending on the feature set.

One assumes in all this that Microsoft, being the partner in this venture who provides the software and was the one stating the $500 goal, is keeping the OEM pricing of Windows for UMPC down to a price that allows this.

So, when the first UMPCs show up at $900 to $1500, the obvious reactions were: the hell? and no way am I paying $1500 for a crippled Tablet PC. And quite rightly so.

We're seeing a response to that reaction, and while I'm not sure it's enough, at least it's something. By Christmas, we should have UMPCs around $750, which is the upper end of the acceptable range, but still not cheap enough. Perhaps next summer.

Now, about comparing UMPCs to Tablets or notebooks. It seems reasonable to do that if all you're talking about is price, but that's a bit simplistic.

Most notebooks in the $500 range are HEAVY and LARGE. They also tend to have lousy battery life. You wouldn't haul one out in a grocery store to check your 'to buy' list. That's why we have PDAs and full feature PDAs are in the $300 to $500 range.

So, what about PDAs? Well, the problem there is that they're all very small and have low resolution screens - and most can't run off the shelf applications. You have to live with 'computer lite' with PDAs. For many, that's actually perfect. I don't see PDAs competing with UMPCs, nor do I see UMPCs taking away much of the PDA market.

Tablet PCs strangely have similar problems to cheap notebooks - too heavy and not enough battery life - but add expensive to the mix. Even the cheapest Tablets are around $1000. A UMPC at $1500 fails to compete with Tablet PC - but one at $500 or $600 will because it has the weight and form factor advantage, and just needs a price advantage - much as it will compete against lower priced, but larger and heavier laptops.

It's a different computer aimed at the people between the tablet PC and PDA markets. And as one person already noted, if the choice is between a $500 video iPod or some other PMP, and a $750 UMPC that can do all the same things, but also is a completely computer... Guess which looks better?

[Steve @ Apr 19th 2006 3:32PM]

"It's a different computer aimed at the people between the tablet PC and PDA markets. And as one person already noted, if the choice is between a $500 video iPod or some other PMP, and a $750 UMPC that can do all the same things, but also is a completely computer... Guess which looks better?"

Uh, the PMP? Thing is, any device with a 7" screen is not going to fit in a pocket, period. Plus all things being equal the PMP would have a better battery life as it's not having to keep the PC aspects ticking over.

The more I think about it, the more I think labeling a UMPC as a "complete computer" is flat out wrong. Yes, it can run Windows but without a suitable keyboard using it as a laptop replacment is a no-go, especialy for people with small hands. Then there's the screen resolution, most full-blown windows applications these days are really best used on at least a 1024x768 display. The big problem though is that apps are designed to be used with both a keyboard and mouse, using something as simple as a web browser is enough of a headache on a touch screen, controlling a spreadsheet, word processor or ($Deity help you) an image editing program is just a pain in the backside.

Let me give you a very simple example: Yahoo Messenger. You have one window to manage your contacts, to bring up contact information you hover the mouse cursor over the contact, then slide the mouse over to select an action. If you open a message window you get a seperate window which needs yet more real estate. Want to add an emoticon you don't know the keystrokes for? You'll need to come out of thumbwheel mode, tap the icon for emoticons, tap the one you want, then go back into thumbwheel mode. And really just that one very simple example could fill a LOT of column inches showing where the interface problems would occur.

[Poopmaster @ Apr 19th 2006 3:34PM]

If features is all you want, then you will eventually end up with a ring that can do anything a computer can do, and be more useless than any real computer. It seems that Samsung and other companies are seeking the holy grail of maximum Frustration Per Square Inch (FPSI). Thanks to idiot geeks ("Why did you buy that postage stamp device and install a SQL server on it using only your pinky to type in commands?" "Because it was..uh..there!") these devices will proliferate within the subculture and achieve a legend about them like the U-Force. Then, geeks will wonder why they are still single.

[rautiocination @ Apr 19th 2006 4:53PM]

i got the tablet pc bug a few months ago, and i found that if you are prepared to buy used, slightly older tablets, you can find a fully functional multimedia pc for pretty cheap. i bought a used fujitsu 3500 and its a blast, a touchscreen instead of active digitizer (sucks for writing text, ok for drawing, good for dealing with the gui imo), 500mhz and 256 megs ram, with a 20 gig upgradable HD. All for 250 bucks incl shipping. battery life is decent, about 4 hours of music if i turn off screen/lower the brightness . . . the screen's 10.4 inches which is great for watching movies

just food for thought, besides the active digitizer and faster spec's, i definitely wouldn't spend 1000+ bucks on something which can be more or less achieved with older tech

[3rdsun @ Apr 19th 2006 5:30PM]

Did u guys miss the one by Averatec has a keyboard, uses a VIA chip for a mere $500.
If more companies would seek out the best deal for the components in their products and pass it on to the consumer instead of looking to hit at the highest end alot more people would by happy and hence the companies also. With the right approach and cost cutting $500 is not an impossible goal. I would definately want one at that price as this can be the perfect companion.

[c.Lake @ Apr 19th 2006 9:53PM]

um... $1,200 is WAY to much money for a "jumped-up" PDA. Wasn't this device supposed to be an, "everybody's light weight portable" mini computer? To be used mostly for the internet and a couple of videos, using the touch screen? WTF?

$400 dollars should be the max, if you expect this thing to take-off.

[Charles @ May 12th 2006 6:20AM]

You'll see them selling high when they fall below or around $500. You'll see them selling out when they fall below $400.