Netbook Scoop

According to a Digitimes report, Asustek announced that Eee PC shipments for the first half of 2008 were 1.7 million, which was 300,000 short of its orginal forecast.

First off, 1.7 million is a very respectable number.  Asus took existing technology, then packaged and marketed in a unique way.  In doing so they have created a market segment that did not exist before.  They certainly deserve a tip of the hat.

But Asus has recently lost their bearings.  The company has so many different models of Eee PCs that you need a scorecard to keep them straight.  So, Asus published one today (copy courtesy of CNet).

Asus has created two problems on their own that they must remedy quickly.

First off, they need to cut the product line back to a much smaller size.  Maybe just three models.  Then they need to market each of these to a different crowd.  Like:

1. The top of the line Eee PC 1000H is the machine of choice for business travelers who want a smaller and lighter laptop.
2. The Eee PC 900 is the perfect laptop for casual users like housewives who want to surf the net and email in an untethered fashion anywhere in the home.
3. The Eee 2G Surf is the lowest-cost laptop on the planet.  It is the ultimate bargain for first-time PC owners and students.

Well, you get the idea.

The second problem is that, with the new competition that has entered this niche, the Eee PCs are suddenly overpriced.  Asus’ released a $100 rebate on the Eee PC 900 yesterday.  But that action is doomed to fail.  First, most buyers (especially techies) hate rebates.  Secondly, the problem is not just the 900.  Prices for all models (except the 2G Surf) need to come down.

If Asus fails to address both of these problems quickly, they should not be surprised when MSI and Acer take a large portion of the market segment away from them.

I’m pulling for Asus to come through here.  C’mon Asus.