Chromebooks Gain Processing Power, Higher Price Points in 2014 Lineup

Chromebooks became a bit more powerful Tuesday with the launch of Dell and Acer models with Intel Core i3 processors that claim performance speeds two to four times faster than 2013 models. Intel said the additional horsepower enables “extremely responsive” devices that deliver a smooth surfing experience even with multiple tabs of rich content open. Chromebooks, based on Google’s Web-based Chrome operating system, have been the darling of the sub-$300 PC market, offering an alternative cloud-based computing experience between that of a tablet and a laptop at a value-driven price point.

During a webcast hosted by Intel and Google, Caesar Sengupta, vice president-product management, Chrome OS at Google, said when Chrome debuted several years ago the goal was to create a computer that was “fast, simple, secure” that would synchronize with other Chrome-based devices so users didn’t have to remember “exactly where we kept all our stuff.” Google and Intel highlighted half a dozen new models based on step-up processors offering features including 11-hour battery life, fanless designs, and lightweight and thin chassis.

For OEMs, expansion into Chromebooks is about self-preservation, said Stephen Baker, NPD analyst. “The market is splitting apart,” Baker told Consumer Electronics Daily. “It’s not Wintel anymore, and the PC OEMs are looking for ways to grow and be profitable.” That PC OEMs look at Chromebooks as an opportunity “shouldn’t be viewed as negative for Microsoft,” Baker also said. “It should be seen as positive for OEMs."

Chromebooks had 5.5 percent market share in Q1, Baker said, citing the genre’s success in the education market. Volume in Chromebooks has been in under-$300 price points where they have about 20 percent of the market, and haven’t been seen as much of a threat to the laptop market, according to industry sources. Tablets “could feel the impact of the latest round of introductions,” Baker said. “The choice is likely to be between a tablet and a Chromebook versus a PC and a Chromebook,” he said.

All Chrome-based devices are built around the same core set of Google services, Sengupta said, prompting an audience question on whether commoditization within the platform limits product differentiation. Sengupta said the question oversimplified the category and that products can be differentiated via processors, keyboards, price points, screen sizes, the inclusion of touch and different hinge designs. Consistency in the platform is a good thing, he said, “but it’s also good to have a lot of choice.”

Ashley Rodrigue, Lenovo ambassador, cited Lenovo Chromebooks’ HD screens and touch options as differentiators. The consumer version has a 10-finger touch screen and the education market model an in-plane switching display, she said, saying Lenovo’s users are “dynamic and one size does not fit all.” With mobile technology an integral part of different daily tasks, Lenovo wants to “appeal to the specific needs of many different types of users.” She called category fragmentation an “opportunity for innovation” and said Chromebooks won’t replace any of Lenovo’s offerings in the computing lineup. Lenovo’s 2014 Chromebook models include the ThinkPad Yoga 11e Chromebook and ThinkPad 11e Chromebook models, which start at $349.