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Ultramobile PCs: The Next (Not So) Big Thing

By Damon Poeter, Fahmida Y. Rashid, CRN
February 18, 2008    12:00 AM ET

Page 1 of 5

When Intel Corp. President and CEO Paul Otellini tells the crowd at the Consumer Electronics Show that ultramobile PCs (UMPCs) are going to spearhead "the largest opportunity to redefine consumer electronics and entertainment since the introduction of the television," solution providers have to stand up and take notice.

Surely, exciting times are in store for consumers and solution providers alike. Whether it's the non-Microsoft Windows devices that Intel seems to favor or the Windows XP and Vista-loaded UMPCs that companies like OQO Inc., Samsung and Sony Electronics Inc. hawk, these devices are about to find their way into everybody's pockets, but not likely today.

While it's impossible to fiddle around with a TabletKiosk or an OQO and not get totally geeked-out on the possibilities, UMPCs remain a niche product for a number of reasons, not the least of which is price. The OQO 02 starts at a base price of $1,299, going all the way up to $2,349 for the version with a 32-Gbyte solid state storage drive. The eo v7110 from TabletKiosk, a wholly owned subsidiary of Hermosa Beach, Calif.-based Sand Dune Ventures Inc., starts at $899, and that's its cheapest UMPC.

Adam Snide, co-founder of online UMPC reseller Build Your UMPC LLC, Coral Springs, Fla., thinks the current crop of devices is only going to appeal to hard-core tech enthusiasts and customers in a select few vertical markets that need ultramobile processing power in the field.

"The OQO is like driving a Porsche. It's not for everybody," Snide said of Build Your UMPC's top-selling device.

Still, UMPC prices are expected to come down, particularly when more vendors start building them.

Developing a UMPC-based service practice is at least a year away for Nashville, Tenn.-based MSP MasterIT, said CEO Michael Drake, adding that prices need to dip to the $300 to $400 range before becoming palatable.

But Intel's bullishness on UMPCs has Drake intrigued. "UMPCs are still in that consumer product area. But given the fact that Intel can make things real, and real fast, in 12 months this space could be wide-open," he said.

And there's no doubt that putting the full PC and Internet experience onto pocket-size devices is on the chip giant's agenda. Santa Clara, Calif.-based Intel will unleash its latest chips and platforms for UMPCs at the end of the first quarter. The ultra low-voltage 45nm CPU code-named Silverthorne and the accompanying Poulsbo chipset make up its Menlow platform.

And Intel's not alone in the ultra-low voltage x86 game. Taiwan's VIA Technologies Inc. already has its C7 chips in OQO's flagship UMPC product, the 02. In the second quarter, VIA plans to go head-to-head with Intel's Silverthorne with a new chip of its own—code-named Isaiah—which promises high-end performance.

Target audiences for UMPCs certainly exist today, and savvy solution providers are getting a jump. GW Micro Inc., a Fort Wayne, Ind.-based VAR, offers IT solutions for the blind and vision-impaired. According to President Dan Weirich, UMPCs with a keyboard interface like the OQO 02 are a perfect fit for his customers. "Ultramobile PCs meet a specific need for our customers ... Portability is very important when you're blind," Weirich said.

Itty-bitty form factor notwithstanding, UMPCs are poised to be the next big thing for mobile power users.

Next: Methodology

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