Everex CloudBook First Thoughts Review

The Everex CloudBook marks the latest entry to the expanding world of UMPC-type subnotebooks at affordable prices. With a 7-inch display, 1.2GHz processor, and 30GB hard drive, the CloudBook certainly doesn't make a very good desktop replacement computer, but it does look like one impressive little road warrior. What did we think of the CloudBook after one day in our office? The answers may surprise you.

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Why Are PC Manufacturers so Afraid of the Asus Eee?

At the Sony Open House, Mike Abary (SVP of Information Technology Products Division) shared his view on the Asus Eee and used the expression “race to the bottom” (in terms of pricing) to describe what would happen if consumers would go for ultra-cheap PCs massively. It is an interesting subject, and here is what we think of it at Ubergizmo: given the success of the Eee, it’s not hard to imagine why PC manufacturers keep an eye on the issue.

“Good enough” is a danger for PC Makers

High-end laptops are not going away but $400 laptops like the Eee could put the other sub-$999 laptops in danger, and the volume is huge in this segment. It is interesting to understand why consumers like the Asus Eee (and the likes) to see why there is a potential for a “race to the bottom”. We call it the “good enough” effect.

“Good enough” is the single scariest thing for all technology companies. They maintain their average selling prices (ASP) by improving functionalities (speed, storage…). Now, what if users’ needs do not evolve as quickly as the hardware? Average selling prices (ASP) would spiral down.

Software innovation is the key

To create more “needs” for the masses, the industry has to create new compelling and mainstream applications (like a new, slow OS with exciting features?) Unfortunately, PC makers have no control over that – software developers do. Additionally, many consumers are now using web-based applications, and the speed of these programs is often limited by the web – not by the PC. That’s one less reason to go for a fancier computer.

The Asus Eee is uber-popular because it addresses a strong demand: it is a light, small, cute and its performance is deemed “good enough” by buyers.

It would naive to think that ultra-cheap PCs are not a real danger for the gross margins of established PC makers: the market pressure is extremely strong: manufacturers are flocking to build these cheap PCs. Even HP is working on a small, but slightly more expensive one. Is Sony in danger? Not in the short term. Should they be worried? Certainly.

Everex CloudBook Finally Available at Wal-Mart

If you've been having a tough time getting your hands on an Asus Eee PC, you can now waltz over to the Wal-Mart online store and get its closest competitor, the Everex CloudBook. As you recall, this sub-notebook was delayed on several occasions due to some unnamed software issue, but I guess the guys at Everex managed to overcome this hurdle now.

Initial review units were littered with all sorts of problems -- like a setup process that hides the next/OK button from users -- but there is a distinct possibility that Everex and the gOS crew were able to address these issues for the retail version. Then again, these retail units could be littered with the same problems, so until we get official word from some early adopters, it's probably better that you tread a little carefully.

The Everex CloudBook 7-inch CE1200V Ultra-Portable Laptop with Via C7-M processor retails for $399.