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What effect might Google Chromebooks have on Apple laptop sales?

Jul. 28, 2011


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Google is venturing into a new market with the upcoming launch of the Chromebook, its very own notebook computer running its very own cloud-based operating system aptly titled Chrome.

The search company unveiled two models boasting Acer and Samsung hardware at its recent I/O Developer’s Conference. Cutting into Apple’s laptop sales may seem farfetched for now, but it sounds much more realistic when looking at what Google Chromebooks bring to the table.

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Microsoft and its Windows operating system are synonymous with the personal computer. The technology pioneer specializes in virtualization, cloud solutions, and various other areas, but built its claim to fame on operating systems and productivity software designed for the corporate world.

Considering that many of its products are household names, we think it is safe to say that this company has done quite well for itself. Still, Microsoft would probably agree that it was soaring a lot higher until Apple decided to step up its game.

In May of 2010, Apple surpassed Microsoft in terms of corporate value and market capitalization. Recent data from Yahoo News shows that while its stock has been steadily climbing since then, Microsoft’s has been continually dropping.

Although Microsoft still has a firm grip over the desktop market, the numbers on Wall Street illustrate that Apple currently has the upper hand overall. Laptop sales for popular items like the Macbook are sitting comfortably now, but things could change once Google’s web-friendly Chromebook officially makes an entrance to the party.

Google Chromebooks are coming in with a lot of steam and thanks to an attractive pricing model, could result in some stiff competition for Apple. The search company recently announced that businesses and those in the educational sector can obtain the new notebook for a fixed monthly fee - $28 per month for companies, and $20 per month for schools.

What makes Google’s computer offering a legitimate threat to Apple’s reign is the additional perks. Chromebooks come complete with the hardware, software updates, maintenance, and believe it or not, technical support. Users also get the benefit of free hardware replacements as long as they are still paying for the monthly plan.

If this much anticipated notebook is the durable workhouse it is being made out to be, it could have both Apple and Microsoft shaking in their boots.

Nothing is for certain, but from the looks of it, Google’s Chromebook might turn out to be a real game changer. Although users will be tied to a contract, it is only a three-year agreement, which for the Samsung model and its Wi-Fi-only connectivity, only amounts to around $430 per machine.

This is pretty reasonable for a device that comes with so many perks in the way of countless apps and additional services, especially compared to the hefty price tags accompanying some of Apple’s laptops.

Being driven by the Cloud will present challenges of course, but either way, it will be interesting to see how the competition stacks up the sales department once the Chromebook hits the shelves.

About the Author
John Zenith is a consultant, best practices activist and advocate for leading web and permission based email services.

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