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Netbook popularity may be boon for Qualcomm

While the popularity of the Eee PC from Asustek Computer may help drive the netbook market and benefit PC processor players such as Intel and VIA Technologies, the new found market acceptance for mini-notebook devices may also be boon for mobile handset chip provider Qualcomm and its Snapdragon processor.

According to market research firm Gartner, global mini-notebook shipments are on pace to reach 5.2 million units in 2008 and eight million units in 2009, and with strong growth expected to be maintained over the next few years, shipments could reach 50 million units in 2012.

In addition to demand coming from emerging markets, education and consumers, mobile handset service operators see such devices as demand drivers for their advanced next-generation services. Therefore, Asustek is cooperating with Japan-based telecommunication vendors to push out a 100 Yen (US$0.91) Eee PC bundled with 3.5G online services, and the company is planning to push out a zero or one Euro (US$1.52) bundle with telecommunication vendors in Europe.

Developments in the mini notebook segment are not going unnoticed by global handset chipset leader Qualcomm, and the company is gearing up for the release of similar devices based on its Snapdragon processor late this year or early in 2009.

Qualcomm has already had some success with its Snapdragon in the 4-inch to 6-inch Internet device segments, with Samsung and HTC being two companies that have announced products based on the processor. However, the company also believes the Snapdragon can satisfy market demand for larger sized devices with a full keyboard in the 7- to 12-inch product range - the company refers to these two segments as Pocketable Computing Devices (PCDs) and Mobile Computing Devices (MCDs), respectively.

During Computex Taipei in June, Qualcomm showcased a 10-inch MCD powered by a 1GHz Snapdragon running Linux. At that time, Qualcomm SVP Luis Pineda indicated that the company was not trying to develop computing products that replaced notebooks, but that were complementary devices for mobile professionals.

Pineda compared the device to a UMPC, which would only provide 2-3 hours of battery life and would require a travel charger for a mobile professional on a day trip. In contrast, Pineda indicated the Snapdragon could run on 500mW at 1GHz. That translates into a full computing device that can run all day, or eight hours, Pineda pointed out.

The key focus of such devices would not be CPU-intensive applications but the light computing mobile professionals needed, including office applications, web-browsing, chat, multimedia and email. While the company indicated that it is supporting both Windows Mobile and Linux for its PCDs and MCDs, it is focusing on Linux for the larger full keyboard devices and has been aggressively developing Linux software support for its MCD devices.

Qualcomm indicated that it has formed partnerships to build support for Linux applications on its chip, focusing on applications that it felt would create a lot of usage, such as a desktop browser, email client, OpenOffice, media player and chatting software. Pineda indicated that while Qualcomm will do a lot of the porting and the prevalidation of the OS, it will be the software providers that will work with system ODMs such as Inventec. Qualcomm will focus on chipset support.

Qualcomm believes the market for such devices will be driven by connectivity, especially 3G connectivity, and its experience and leadership in the wireless modem market will provide it with a strong advantage over its competitors from the PC market. Pineda added that the Snapdragon also supports GPS, Wi Fi, Bluetooth, a 12 megapixel camera, as well as support for Mobile DTV technologies such as MediaFLO, DVB-H and ISDB-T. Therefore, system houses and ODMs can design any number of products, from entry-level to high-end touch-screen devices, Pineda indicated.

Pineda also argued that such integration would also make solutions based on the Snapdragon competitive with any netbook solution in the wireless space, as netbooks would require add-ons such as wireless modem cards.

Qualcomm recently noted that more than 20 OEMs are developing more than 30 products using the snapdragon processor, with devices expected to be released at the end of this year or early next year.

Moving forward, Qualcomm expects demand to be even stronger once LTE is adopted in the market. Qualcomm will launch chipsets supporting LTE next year. In terms of WiMAX, Pineda indicated that Qualcomm has no plans to support it with its Snapdragon chip, but the company will monitor developments in the market.

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