Report: HP Contracts Flextronics for 2M Netbooks

[RobRich]

Flextronics has reportedly scored an order from Hewlett-Packard for two million netbook units during 2010. The interesting aspect is the price point, as an alleged $45 per unit manufacturing cost could place considerable pressure on other netbook manufacturers. More information at DigiTimes.

[Whir]

Wow. What's it going to have? A TI-85 brain with a 256 color 740x420 screen?

[RobRich]

Admittedly, that figure is not including software, nor is it recouping R&D costs.

Still, I agree that $45 per unit even for just the hardware seems rather low.

On the architecture side and given the stated production cost estimate, I would think maybe a RISC platform based on ARM or MIPS running Linux, but such a solution could be a gamble for a mainstream netbook model from a tier-one OEM unless backed with an appreciable level of consumer-concentric software support straight from HP or a contracted provider.

If going a more traditional route, it is rather difficult to image Flextronics delivering a market viable x86 netbook at such a low price point.

[Whir]

Maybe they're shooting straight for Chrome OS.

[RobRich]

Could be, and given Chrome OS utilizes the Linux kernel, porting to a lower cost RISC architecture is a distinct possibility. Linux kernel support for ARM and MIPS is already well established.

The hardware cost reduction is coming from somewhere, and from I have seen, it would be a stretch to think x86 outside of maybe VIA. Intel Pineview (next-gen Atom) will likely be price competitive, but I doubt it will drive netbook production costs down to $45 per unit without additional corresponding reductions in display and data storage component costs.

nVidia's Tegra or TI's OMAP 3 offerings - both being ARM chips - would seem more realistic, at least from an outside perspective. Android - with its Linux kernel - is already running on ARM, so Google does have existing software development experience with the architecture.