The Most Hated Company In the PC Industry

An absolutely classic article from Mike Elgan:

Who in the hell is Asustek, and why does Microsoft hate them more than any other company in the industry? Why does Apple, Dell and Palm Computing hate them?

And why does Intel love them?

Taiwan's Asustek -- better known as ASUS -- is one of the most interesting, innovative and fastest-growing companies in technology.

At its core, Asustek makes motherboards -- more than any other company. Asustek motherboards are the heart of Sony's PlayStation 2 consoles, Apple MacBooks, Alienware PCs, and some HP computers.

But that's not why they're hated. The source of ire is a tiny laptop called the ASUS Eee PC. This open, flexible, relatively powerful, and very small laptop is notable for one feature above all: Its price. The Eee PC can be had for as little as $299.

Let's take a moment to ponder how cheap that is. This full-featured laptop costs $69 less than the 16 GB Apple iPod Touch. It's $100 less than an Amazon Kindle e-book reader. The most expensive configuration for the ASUS Eee PC on Amazon.com is $499.

The device also comes with OpenOffice, a Microsoft Office replacement, and Firefox. The entire system -- hardware, OS, office suite and applications -- costs $30 less than Amazon.com's discounted price for Microsoft Windows Vista Ultimate alone.

Those price comparisons are a fascinating way to look at this device which, yes, is underpowered, too small for most people, and runs Linux and not, ahem, a real operating system. (Relax, that was a joke.) But my goodness. It is amazing what you get for $299 here. I may have to get one of these.

Discuss this Article 6

cesjr
on Jan 8, 2008
"Microsoft, Apple, Dell and Palm hate Asustek because the company can give us something they can't: A super cheap, flexible, powerful mobile computer. At $299, why would anyone not buy one?" One reason is lack of applications. As long as all you want to do is basic internet and email, I guess you're OK. What if you have an iPod or Zune? What if you need Office? And is it really "powerful"? It has an 800 mhz processor, an 800 by 400 screen (remember 1988, anyone?) and a 2 GB hard drive. Better not rip too many CDs. The only eee PC configuration that makes sense is the $299 one. Because, can't you already buy a Dell laptop for $499? That has a bigger screen, faster processor, 80 gb hard drive, runs the applications you want, etc. Sure, the Dell is bigger, but if you're price conscious you probably don't have the money for a small, portable eee PC for Starbucks AND a regular computer when you need more capabilities. I've seen plenty of people lugging around huge Dell laptops. I'm sure they'd like something smaller but they wanted a cheap laptop for school, work, etc. Apple's customer is simply higher end - they want to do photos, home movies or other types of creative projects. And they want that Apple support (including free help and training at the retail stores). Asus can't match that. At some point, Apple's going to have an iPhone, iPod, and/or small tablet that simply connects to an external screen and keyboard/mouse and acts as a computer (either one that does basic stuff or even has enough power to run iLife apps). That makes a lot more sense than a compromised design like the Asus (not small enough to be pocketable, not powerful enough to replace a full-featured notebook PC.
kellymjones
on Jan 8, 2008
Yes, you can buy a low end laptop with better specs for $499. But that's not the point. In this case, size matters. For a certain segment of the computing population, you get a laptop that is cooler, quieter, lighter, and smaller. Yes, it's less capable, but you can't have everything. I've lugged around heavy laptops for nothing except note taking and projecting a slide show. I don't need the extra power. However, like cesjr said, someone like Apple or Dell or whoever, will eventually make something better that is the same size. It will be dockable for those times when you need a larger display and keyboard, and it's capability will be good enough for most. In my mind it's just a another useful addition to the computing landscape that was waiting for the right point in time for the price/power/size to make sense.
lsproc
on Jan 8, 2008
Its a little known fact that ASUSTeK has the contract to manufature the Macbook...
daveinla
on Jan 8, 2008
I think it's a perfect laptop to offer to a grandma to whom you want to send email and want to videoconf with. This thing should be pretty reliable, trouble free and virus free so peace of mind.
DRWAM
on Jan 8, 2008
The answer is to buy the Dell and start lifting wieghts so that you little girls don't find your little laptops 'too heavy'! On the other hand, it is less expensive to read your news on the internet using one of those cheap laptops, rather than paying for a newspaper subscription. Of course, it seems as if you cannot do much more with it. BTW, ASUS is one of my favorite mobo brands.
Sir_Timbit
on Jan 8, 2008
It has its limitations, but it's not that bad, especially considering what you pay for it. It has a lot of promise and they've already talked about future upgrades for it. People have already managed to run OS X and XP on it. If Apple is supposedly angry at Asus, it's probably because rumors are swirling that they're about to introduce a subnotebook. If so, how much do you bet it will cost almost $1000 more than the Eee PC?

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