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Notebook nirvana

Mobility is in, with notebooks surpassing sales of desktop computers this year for the first time. But portability comes with a price: somewhat slower processors and a bit more expense.

DAVE GUSSOW
Published November 17, 2003

Michelle Marissa's first notebook computer lasted five years before it succumbed to a fatal fall. She went right out and bought another.

"I was suffering from withdrawal symptoms," said Ms. Marissa, 63. "I couldn't stand it. I had gone less than a week. I even tried to repair the old notebook with tweezers and pliers."

Choosing a notebook computer was a must for the New Port Richey woman, who has difficulty sitting at a desk because of a disability. But she also likes its convenience.

"It's so mobile," she said. "It doesn't take up space. It's all there in one piece."

It's the year of notebook computers. They're the cool machines on college campuses, a must for business road warriors and increasingly a third or fourth machine for the home that already has a couple of desktops and a wireless network.

Notebooks are outselling desktops for the first time. Prices are down, power is up, and mobility is trendy.

"You can find a well-configured notebook for $799 or $899," said Stephen Baker, an analyst with the NPD Group. "Those are great prices, very close to what you're paying for a desktop."

Led by notebook sales, the computer industry is enjoying a rebound this year, with sales gains in double digits after a couple of years of modest increases. As the important holiday shopping season approaches, experts don't expect a letup.

Average laptop prices have been running between $1,340 and $1,380 this year, down a bit from last year. And machines priced at less than $1,000 have attracted a lot of new buyers.

Baker breaks notebooks into two categories: "mobile" machines that weigh no more than 5 or 6 pounds and are good for road warriors; and "portable" machines that weigh more, but that can be moved around a house or office.

"Those of us who travel don't think 10-pound notebooks are mobile," Baker said.

While notebook sales surged this year, the machines still lag desktops in features. Processors are slower, though the gap has narrowed, screens top out at 17 inches and battery life is still an issue, particularly for heavy users.

Purchasing a low-end notebook can raise some of the same issues consumers face with less expensive desktops, mainly giving up performance for price, says Alan Stafford, senior editor at PC World magazine (www.pcworld.com)

While consumers are attracted by the falling prices, they should be aware of hidden costs of notebooks: Repairing notebooks can be more expensive than desktops, according to PC World, and they can be damaged more easily because they are portable. Keyboards can cost up to $300, a hard drive can run about $150 to $200, and a new display can be more than the notebook's initial price.

Although many consumers will pay extra for a laptop, price clearly drives consumer decisions on computers. Five years ago, desktop PCs that cost $600 or less made up about 25 percent of sales. This year, according to NPD, it's 50 percent, and two-thirds of PCs sell for $800 or less. The average price for a desktop was $725 in August, the latest numbers available, down $30 from December.

One of the challenges in generating consumer enthusiasm on the desktop side is that machines are not much different from a year ago. DVD recorders are making their way to lower-price models, and the industry is pushing Media Center PCs that act as entertainment and information hubs for a family.

But overall, there's a sameness on the desktop side that is reflected in testing by PC World magazine, which does a monthly ranking of top performers.

"Many of the second-tier vendors, including the ones on our charts, are creating systems in much the same way that first-tier vendors are," Stafford said. "They are using off-the-shelf parts. The difference between first-tier and second-tier and build-your-own isn't that great."

Those charts show familiar top-brand names such as Dell and Hewlett-Packard, but they also give top marks to machines made by lesser-known companies such as Amax, Sys Technologies and IBuyPower.

There are also fewer players because many companies disappeared in the fierce competition. About five years ago, the magazine's ratings listed 20 desktops in a power category and 20 in a budget category every month.

Now, it has a top 10, with three categories each: desktops with entertainment, mainstream and value systems, and notebooks with desktop replacement, ultraportable and value machines.

The shakeout has made PCs less expensive, Stafford said. But, "It's a loss in that I don't think there's as much innovation. When half are using the same case and same components, how do you pick? It's basically the name and service, and it's hard for us to evaluate service."

Surveys and anecdotal evidence suggest consumers are increasingly unhappy with service and reliability.

The changes in the desktop scene this year are in higher-end machines, and are aimed more at professionals and business users. The top-of-the-line offerings are "64-bit" machines that process data faster than today's 32-bit processors. They include Apple Computer's Power Mac G5 and PCs powered by the Athlon 64 processor from Advanced Micro Devices. Those machines start around $2,000, but there's little software available to take advantage of these chips. In fact, Windows XP doesn't support it yet.

- Information from Times files and wires was used in this report. Dave Gussow can be reached at gussow@sptimes.com or 727 771-4328.

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