• Americans love chrome on motorcycles and toasters, but will average consumers take a shine to the Google Chrome operating system? Google announced its lightweight Chrome computer operating system today and says consumers can expect it by the end of 2010. Google describes the operating system as lean and mean and perfect for small Internet-friendly devices that are both easy-to-use and transport — such as a netbook.

    True, netbooks are very popular with consumers right now, but will they be in 2010 and can Google ride the netbooks’ coattails into the heart of consumers?
    Google Chrome: A Nerd’s Dream Come True

    My guess is that though bleeding-edge technology lovers and fanatics will think this is “cool” news, the average technology-hungry consumer will have more questions about this option than answers.

    Innovation is a great thing, but the question isn’t about Google’s innovative spirit, it’s about what consumers want and need. After all, consumers don’t like too many confusing choices. Ever scratch your head in the laundry detergent aisle at the grocery store asking yourself “do we really need 30 different brands?”

    Here’s what consumers want to know:

    *What is Chrome? It’s a new operating system — the code the runs all the programs and hardware on a computer or device. Chrome is being built on top of the code that also runs the alternative Linux operating system. Linux is a free and competitive alternative to Windows.

    *Why should I care? It will be another operating system to consider when buying a netbook. Your other options are buying a Netbook that runs Linux or Microsoft Windows.

    *How are operating systems different? Like Fords, Chevrolets and Toyotas, these computer operating systems are built differently, have different features and some are more popular than others.

    *So does the OS truly matter for me, the consumer? That is the million-dollar question.

    So far, as netbooks have grown in popularity, it appears that consumers do apparently care which operating system powers their Netbooks, but not for the reasons you might think.

    They don’t care whether it’s a Ford or a Honda engine under the hood. Many may not know how to tell a hard drive from a CPU fan or spark plug. But what consumers like is familiarity and comfort.
    * So are they buying up Netbooks that run Linux because Linux is cool? No. Instead, consumers bought Linux-powered Netbooks initially because that was what the first wave of Netbooks ran to save money. But as Microsoft worked on a smaller, feature-laden version of its Windows operating system to power Netbooks, manufacturers began buying it cheaply and loading it on to their new Netbooks.
    And what happened to the Netbook marketplace after Windows started appearing on Netbooks? Well, that’s when consumers saw the Windows label, which is familiar and friendly, and decided to buy the Windows versions because they already know how to use them and are familiar with them.
    Since then, the Linux-powered Netbook market has fallen drastically, according to industry analysts, while Windows versions are today’s shiny chrome on a fancy Harley-Davidson. It gets consumers in the door and helps make the sale.
    What consumers do care about, though, is whether Chrome or any other new operating system will run their favorite programs, like Apple’s iTunes or Microsoft Office. Those will be among the measures of success for Chrome or anything that follows it. We’ll have to wait to get those answers.
    So what’s this all mean for Google? Well, wanting to be innovative is a great thing.

    But this looks like a hard road that Google is about to enter. That’s not to say they shouldn’t do it.
    The question is, what will you, the consumer, get out of it. Americans love chrome.

    But will they love this Chrome? Let the polishing begin.

  • Stronger PC demand from consumers in China and Southeast Asia, particularly Indonesia, gave Intel’s Asian business a boost during the second quarter, the company said Wednesday.

    “It reflects the strength in Asia relative to the rest of the world, particularly China and Southeast Asia. Both of them look pretty good in terms of PC consumption,” said Navin Shenoy, vice president of Intel’s sales and marketing group and general manager of the company’s Asia-Pacific operations.

    Intel reported second-quarter revenue in Asia of US$4.4 billion, down 8 percent from $4.8 billion during the same period last year. But revenue from the region was up 21 percent over the first quarter of this year, a sequential increase of $762 million. That helped to raise the percentage of Intel’s second-quarter revenue that came from Asia to 55 percent, from 51 percent last year.

    Overall, Intel reported a net loss for the period of $398 million on worldwide revenue of $8 billion. The company’s results were dragged into the red by a one-time $1.4 billion antitrust fine levied by the European Commission in May.

    While Asian sales outperformed demand from other geographical regions, not all of the chips sold in Asia end up in the hands of Asian users. Asia is home to most of the world’s largest computer hardware makers, and Intel chips sold in Asia are often used to manufacture computers that are shipped to customers in other parts of the world. Still, demand for computers from Asian consumers was relatively strong during the second quarter.

    “As I look around the region, I see relatively stronger PC sales in China and Southeast Asia than in other parts of the world,” Shenoy said, adding that consumer PC sales in these markets are also higher than they were during the same period last year.

    “Indonesia is probably the strongest out of all the countries in Southeast Asia,” he said, adding that all of the countries in that part of Asia are seeing growing demand for PCs from consumers.

    Looking ahead, Shenoy expects Asian PC sales to rise higher during the third quarter, but stopped short of declaring a recovery.

    “Our forecast for the third quarter is for it to be seasonally up on the second quarter. That reflects a return to normal seasonal patterns, but that’s as far as I would go at this point,” Shenoy said.