Windows 7 to usher in the $200 netbook age

Get Started
Windows 7 enables OEMs to add more customisation to the Getting Started window

Microsoft recently invited PC manufacturers to Redmond to talk about Windows 7 and revealed some interesting details about its thoughts on the netbook market - not least predicting a $200 (£140) price point for Starter Edition variants by Christmas.

The manufacturers are already gearing up for Windows 7 PCs, says Mark Croft, the Director of OEM (Original Equipment Manufacturer) Worldwide Marketing.

"They came wanting to know real block-and-tackle information about working through the process, about the schedule and some details around specific OEM policy and licensing". He added, that covered how pre-installed software will be handled and what counts as a netbook for licensing.

Croft insists Microsoft hasn't locked down a limited netbook specification yet: "There isn't a standard, uniform view of the world. Each OEM has nuances on this depending on what they think their brand value is, each one has a slightly different take on what they're trying to do in terms of market share or margin.

"Some of them are trying to make $10 on this device or $20, and some are just trying to sell a unit and break even. Some of the OEMs absolutely have an opening price point but they really have the objective of persuading the customer that if they pay a little bit more, they get significant extra functionality, whether it's in the hardware specification or the software and experience. No two are the same."

Starter or Home Premium?

Some OEMs will continue to offer Linux netbooks, although Croft repeats stories of higher return rates than Windows models: "I have heard from big US retailers that they are seeing a disproportionate amount of returns."

And although the Starter Edition will be an option for Windows 7 netbooks, "we are clearly going to market to customers that Home Premium is the default. We've made our case to the OEMs; we've shared some analyst data with them about customer preferences."

But there will be netbooks with Starter Edition and that will drop prices lower than ever, he predicts. "We have a couple of the OEMs continuing down a path to be very aggressive on price. It puts the pressure on everyone. We're anticipating opening price points to reach about $200 at least in the US market this holiday season, and another $50 maybe for Nvidia Ion machines."

Along with price, battery life under Windows 7 is going to be a big issue for netbooks and notebooks alike. "Outside of price it's one of the next few things customers make buying decisions on" says Crofts; OEMs are working hard on this, and he predicts we'll see custom power profiles on all new machines.

"Windows 7 can help, but settings on PCs and peripherals are key (one USB device that doesn't enter selective suspend can significantly reduce battery life). "Our breaths are held to see how material the real-world battery life increases are at the holiday season."

Startup time has been another focus and again, it's not just the OS that makes a difference – it's the software that's installed and often the software that's pre-installed. Microsoft has been putting more pressure on the OEMs this time Croft says. "We're all about putting the stopwatch on how quickly a customer gets to a usable experience. With OEM pre-installed software what you'll see is a little bit of streamlining going on in the initial experience for the customer."

Time to get started

Although OEMs can still offer you software to pre-install as part of the setup, once you've made your choices when you get to the Windows desktop for the first time you should be ready to start using the PC rather than having to finish setting up bundled security software and accept updates to it before you can do anything.

Contributor

Mary (Twitter, Google+, website) started her career at Future Publishing, saw the AOL meltdown first hand the first time around when she ran the AOL UK computing channel, and she's been a freelance tech writer for over a decade. She's used every version of Windows and Office released, and every smartphone too, but she's still looking for the perfect tablet. Yes, she really does have USB earrings.

Latest in Windows
girl using laptop hoping for good luck with her fingers crossed
Windows 11 24H2 seems to be a massive fail – so Microsoft apparently working on 25H2 fills me with hope... and fear
A woman sitting in a chair looking at a Windows 11 laptop
It looks like Microsoft might have thought better about banishing Copilot AI shortcut from Windows 11
Using Zipped files and folders in Windows 11
Windows 11 should soon be faster at extracting files from compressed ZIPs – and it’s about time, frankly
Xbox Wireless Controller
Microsoft is adding a powerful new feature for using Xbox controllers with Windows 11
Woman disgusted by her laptop
Embarrassing Windows 11 bug that deleted Copilot app is now fixed – but will anyone outside of Microsoft care?
Student sat at a desk with a laptop in a dormitory looking at a mobile phone
Windows 11 could eventually help you understand how fast your PC is - as well as offer tips for making your PC or laptop faster for free
Latest in News
Open AI
OpenAI live stream - could we see a major ChatGPT upgrade?
Apple WWDC 2025 announced
Apple just announced WWDC 2025 starts on June 9, and we'll all be watching the opening event
Hornet swings their weapon in mid air
Hollow Knight: Silksong gets new Steam metadata changes, convincing everyone and their mother that the game is finally releasing this year
OpenAI logo
OpenAI just launched a free ChatGPT bible that will help you master the AI chatbot and Sora
NetSuite EVP Evan Goldberg at SuiteConnect London 2025
"It's our job to deliver constant innovation” - NetSuite head on why it wants to be the operating system for your whole business
Monster Hunter Wilds
Monster Hunter Wilds Title Update 1 launches in early April, adding new monsters and some of the best-looking armor sets I need to add to my collection