As I scour the market for a potential Ubuntu netbook purchase, I’ve stumbled onto two interesting tidbits of info: First, Ubuntu netbook demand recently exceeded supply at System76. Second, another niche Ubuntu PC maker will introduce a netbook this August.
Sorry I don’t have specific “sales figures” for you. But I do have anecdotal pieces of info…
First up, System76 President Carl Richell says demand for the company’s Starling NetBook and Meerkat NetTops has been particularly strong. In an email to me, Richell wrote:
“We’ve had some challenges due to growth this year. Starling NetBook demand drove us out of stock two weeks earlier than projected. Meerkat NetTops were out of stock for 2 weeks forcing delays — they’re back now. Two products launches are awaiting enough stock to fulfill initial orders — the Meerkat Ion NetTop and The Leopard i7 desktop. We’re adjusting to higher Ubuntu product demand.”
How much higher demand? That’s difficult to say since System76 is privately held. But earlier this year, Richell told me his 1Q 2009 revenues rose 61 percent compared to 1Q 2008. It sounds like the System76′s momentum continues.
More Netbooks Coming
Meanwhile, I hear another Ubuntu PC specialist is preparing a netbook launch — with availability expected sometime in August. As soon as I firm up the product details I will be sure to share them.
I’m also closely watching system updates at Dell, which continues to offer Ubuntu netbooks and laptops. However, Dell.com’s US website (www.dell.com/ubuntu) as of July 27 still was not offering Ubuntu-based desktop PCs.
Dell in early July told ComputerWorld the company was simply transitioning to a new Ubuntu desktop offering. But so far the Ubuntu desktop has yet to debut on Dell’s site.
Follow WorksWithU via Identi.ca, Twitter and RSS (available now) and our newsletter (coming soon).
Read More About This Topic
Share This Post
Interact: Add a Comment | Trackback Link | Permalink
Subscribe: RSS Feed
Don't miss Charlene O'Hanlon's weekly columns...
[...] http://www.workswithu.com/2009/07/27/ubuntu-netbooks-strong-demand-at-system76/ [...]
[...] http://www.workswithu.com/2009/07/27/ubuntu-netbooks-strong-demand-at-system76/ [...]
Well, I guess the shortage is partly my fault – I’m writing this comment on “Starlight”, my beloved System76 Starling netbook. I’ve been into computers since 1978, and this is my favorite machine thus far.
When my wife discovered how well Ubuntu NBR works on the Starling, we reflashed her eeePC netbook with Eeebuntu NBR – a most remarkable improvement over the distressingly bad Linux distro native to that machine (IMHO of course).
Both the Starling and Ubuntu NBR: Highly recommended.
@ricefg: thanks for the mini-review. How does the keyboard feel? I have an eeepc 701 which already went though 3 keyboards. They all stop working at some point (some keys stop working, etc). Also, the speakers, are they any good? (another annoyance in the eeepc 701). I know eeepc’s have improved since the first generation 7 inchers, but it’s getting harder to get them with Linux. And, yes, the Xandros it came was is ok if you plan to use it as an appliance, but I installed Kubuntu for a real OS soon after the purchase.
@ricefg: another thing, if you needed to replace the keyboard, where would you get one? Is this a re-branded generic netbook so you could go to ebay and buy replacement parts for hte generic brand? (re-branded MSI Wind, etc) Thanks in advance!
Hardware sells as a business plan. That’s something I’ve been promoting since the early years of Mandrake, when they were struggling with the Club, dividing their community, and I was saying: “why don’t you open a store where I can go, browse for hardware and buy Mandrake compatible devices?”. Of course Linux hardware support is a lot better now, but I think there still is a market to sell completely certified hardware devices: webcams, printers, you name it. Ubuntu could do that, partnering with big retailers such as Amazon, etc., and even smaller ones like System76. And this is not as simple as “I go to Ubuntu.com, see what’s supported and buy it in ebay”, because some hardware is tricky, particularly webcams, network devices and similar beasts that can be sold under the same name with different chipsets.
A one stop hardware destination could add value to both Canonical and the Consumer. My 2 cts.
Great news to hear! Especially since there is so much more doom-and-gloom news for Linux on the netbook market with Windows 7 (or are they still planning on supporting XP?).
I like the idea of a netbook and definitely prefer one that comes with Linux (especially Ubuntu but I won’t fret it) so I know the hardware is fully compatible.
Dell includes Fluendo multimedia pack with theirs, while System76 does not?
[...] http://www.workswithu.com/2009/07/27/ubuntu-netbooks-strong-demand-at-system76/ [...]
@dragonbite: I think this article is more than self explanatory (on the “success” of windows and “failure” of Linux on the netbook market)
http://www.groklaw.net/articlebasic.php?story=20090619161307529
@Leo
The success of XP on netbooks so far has come at a cost: essentially, Microsoft isn’t making any money on those licenses. So it’s a success in terms of market share, but a failure in terms of profitability.
The trend is similar with respect to Windows 7 (already cheaper than Vista and offered at deep discount) and Office going online with a free (*gasp*) version. The strategy? Keep market share even if it means giving up the legendarily high margins Microsoft has enjoyed for long.
System 76 is one company that will rise to the top and become the next Dell. They are not afraid of Microsoft because they don’t do business with them so MS has no leverage on them. The same for Emperor Linux. Companies that sell hardware with Linux preinstalled, will flourish more and more while the Dells and HPs will be going down in market share as people get more used to Linux. I can’t wait for Systems 76 IPO. I want some shares in that company.
Simplicius:
Uhm Canonical isn’t making any money either. How much of the sale price of System76 Starling netbook is going back to Canonical? Seems to me Canonical is just as willing to lose money to build marketshare as MS is to lose money to keep it.
No one wins if the business of pre-installed operating systems is a zero-sum game. There has to be money in it, Canonical hasn’t shown that their business plan is sustainable at all.
-jef
Sadly, from my point of view the Starlings are merely OK as netbooks. The first problem is the lack of an SSD option. Thomas has a somewhat reasonable explanation for why they don’t offer such an option. I’m willing to excuse the lack for such a small company.
However, the dealbreaker for me is the lack of user customizability. Check out this thread in the support forums when a user asks about putting in his own SSD:
http://ubuntuforums.org/showthread.php?t=1159209
Thomas also makes a statement that I think is inaccurate in the U.S.:
“The hard drive is not easily accessible by the end user. You would have to crack open the whole chassis. Opening up would void your warranty.”
As I recall, Asus got a lot of flak when they first released the EEEs with a “Void if opened” sticker on the cases. They quickly moved to remove that sticker for all EEEs shipped to the U.S.
Now, contrast that with the EEE 901a that I bought with Linux on it. Special compartment doors made it easy to change one of the SSDs and the memory. I also swapped out the keyboard after a minor liquid accident.
All of the parts were bought online and I did the replacements myself in less than 20 minutes. Now, obviously I can’t speak for anyone else. However, I’m not willing to shell out money for any laptop or netbook that I can’t do the same kind of update and repair work myself.
Dell has been playing the Ubuntu/Linux joke for years now.
Still anyone stupid enough to make a go for it are left with a headache after banging their head into the Dell wall.
Dell’s alleged Ubuntu friendliness is a joke and every european familiar with Linux knows it.
That’s why I don’t buy ANYTHING from Dell. I don’t even consider Dell when they have competitive products. Their monitors are on top of my list and so are the servers.
A message to the OEM’s out there:
Hardly anyone out there uses Linux because its cheap – we use it because it’s good.
What makes you think that we will settle for the crappy hardware you leave us with when you DO provide Linux machines???
@Jef Spaleta:
There are a number of differences. First, it took MS $6 billion to develop Vista. A single person can create a Linux distro for free. A company can invest 1% of what Windows invested and have a good, polished distro out. So obviously MS needs to make a heck of a lot of money just to carry on living.
Second, Canonical will never make money directly from the bits that make up Ubuntu. Trying to do that would be a foolish business model. But there are plenty of other ways to make money and Canonical is experimenting.
Third, Canonical already said at the beginning of the year that they were close to being profitable and expected to be so soon. So surely they have money coming in. Make a little more and there you have it, a profitable company.
No one is saying it’s easy, but plenty of OSS companies are flourishing.
Now, the main difference is that the situation is improving for Canonical but getting worse for Microsoft (see their recent worst ever year).
@Simplicius: good point, and pls note that I really meant “success” in an ironic way, because they did take over the market, misteriously (even if at a loss), despite the phenomenal success of the Linux based, early eee pc’s. This article I linked explains why.
@Jef: I think Canonical _can_ make money out of it selling customization services and support to the hardware vendors (as opposed to the end users). Anyone can do it, but they are in the best position. The same way anyone can support RedHat’s software, but corporations buy RedHat’s support.
@Simplicius 2: I agree. The costs for Microsoft are orders of magnitude higher, that’s where things tie out.
Hey Folks: Just wanted to let everyone know I’m reading and digesting all of the comments. And I will certainly share some news about 2 other Ubuntu netbooks that are set to launch… likely early August… as soon as I’m permitted to do so.
@Alberto: While System76 _appears_ to be buying generic laptop configs from one of the Taiwanese based manufacturers, Emperor Linux is buying bare machines from the big names- i.e. Dell, etc.
Each one of their sales is a sale towards those big names that’re going down in marketshare as you put it.
I don’t disagree System76 is poised to be the next Dell, but you need to know that Emperor Linux needs to probably make the same move System76 and ZaReason have done- go find them a supplier and make that move accordingly.
@Frank: yes, that will make systems at Emperor be priced at more reasonable levels. These days, when installing Linux is easier than playing solitaire (YMMV), it will get harder and harder to charge a large premium for Linux preinstalled …
@Simplicius:
1) Canonical has not said they are close to breaking even. The exact quote in the NYTimes article is “creeping towards 30 million in annual revenue.” creeping towards is not equivalent to “close to” not by a long shot. Fact: Canonical has not stated a hard number as to the actual annual revenue anywhere. They could be generating 5 million gross revenue a year and the statement made in the NYTimes article would be just as valid.
2) Canonical has never issued any statement with regard to how well its “experiments” in service revenue. For example we have no statement with regard to Landscape adoption even though subscriptions have been available for purchase for a couple of years now. In constrast Red Hat’s RHN adoption numbers are talked about in their quarterly financial statements. For all we know Landscape and is a money loser and has been since inception. Canonical doesn’t talk about Landscape at all.
3) Servicing OEM partners is very much one of the revenue streams Canonical is experimenting with..both engineering and tiered support services. I would hazard to guess that OEM services is actually the bulk of Canonical’s revenue. But again Canonical doesn’t talk about individual revenue streams so there’s no concrete evidence to support any conclusions about the importance of OEM services. So with that in mind I’ll ask again..how much of the retail cost of a System76 Starling goes back to Canonical? Does System76 have standing contract with Canonical for any engineering or support services or is System76 doing all their own in-house engineering and technical support? If you are choosing to buy from an OEM that is not contracting with Canonical for either engineering or technical support services are you spending your money helping to sustain Ubuntu? If you are willing to pay for computers with Ubuntu pre-installed shouldn’t some of that cash go into funding Ubuntu development?
-jef
[...] As I scour the market for a potential Ubuntu netbook purchase, I’ve stumbled onto two interesting tidbits of info: First, Ubuntu netbook demand recently exceeded supply at System76. Second, another niche Ubuntu PC maker will introduce a netbook this August. Here’s the scoop. [...]
Too bad they have ubuntu on them. Just as bad as paying the windows tax, Windows, Ubuntu, either way it will need a clean wipe and a real linux os put on it.
Joe:
Is there an Ubuntu tax? For all we know Ubuntu adds zero cost to the System76 systems. None of the OEMs talk about their profit-sharing relationship with Canonical.
I’m more concerned about making sure the hardware is fully supported by open drivers. System76 doesn’t expose enough information about chipsets or required kernel modules for my liking. I did try to get more information, concerning chipsets(including wireless) so I could do my own verification, but the information I got back via email wasn’t specific enough for me so I didn’t buy a system76 system. The last thing I want to do is buy hadware unknowingly that requires proprietary drivers.
-jef
Jef: I apologize for not having the info at my fingertips. We move pretty quickly will all of our blogs. The in-depth questions you ask are a healthy reminder that we need to keep digging deeper on our content. I will try to get the answers for you.
-jp
[...] Ubuntu Netbooks: Strong Demand at System76 As I scour the market for a potential Ubuntu netbook purchase, I’ve stumbled onto two interesting tidbits of info: First, Ubuntu netbook demand recently exceeded supply at System76. Second, another niche Ubuntu PC maker will introduce a netbook this August. [...]
Been looking at getting a netbook. Got to convince wife to let me buy one. Her argument the laptop I bought from system76 about four years ago works perfectly well and I don’t need another one. She doesn’t understand the geek lust for new and more interesting gadgets. I think this fall after a piece of overtime comes to me I will buy one anyway. Most likely will be from system76.
[...] http://www.workswithu.com/2009/07/27/ubuntu-netbooks-strong-demand-at-system76/ [...]
@ Jef Spaleta,
In Jan. 2007 I bought a desktop and a laptop from System 76. Prior to purchase I inquired via email about drivers and found System76 quite forthcoming. I did *not* inquire about specific chipsets. What I was interested in was whether any proprietary drivers were used. The information I got back was that the desktop shipped with the proprietary nVida driver and the laptop required proprietary firmware for wifi although the driver itself was FLOSS. All other drivers were FLOSS.
That was two and half years ago, so things may have changed. But I found them quite responsive in a way that I can’t begin to imagine for a company like Dell.
[...] http://www.workswithu.com/2009/07/27/ubuntu-netbooks-strong-demand-at-system76/ Tags: Linux, Ubuntu This entry was posted on Tuesday, July 28th, 2009 at 7:55 and is filed under Hardware, Linux. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. [...]
That’s good news. For Australia, System76 won’t ship but Zareason does, and recently, Dell only offers the Latitude 2100 netbook and HP offers the mini 1000.
I also use Linux because it’s good not because it’s cheap. I have been using Ubuntu for 3 years and it has been a gradual changeover from Windows so now I’m ready to purchase a good spec desktop.
I’ve owned a System76 Starling netbook for about two months now. I’ve been mostly happy with it. Here is my review: http://tinyurl.com/lkexet
[...] http://www.workswithu.com/2009/07/27/ubuntu-netbooks-strong-demand-at-system76/ [...]
I’ve added a rather detailed review of my Starling experience at http://tr.im/wYOg.