Why you're more likely to find a Chromebook under your tree this Christmas
As tech shoppers peruse the aisles this holiday season, an increasing number are considering the humble Chromebook.
Analysts say sales of the low cost, no fuss laptops that run Google’s (GOOGL) Chrome operating system software could triple from last holiday season, but acknowledge even that would still represent only a small fraction of all laptops sold.
Chromebooks don't run the gamut of programs that work on Mac and Windows computers. Instead, they rely mainly on web-based software running in Google’s Chrome browser. That has limited their popularity, but the spread of wifi connectivity and growing usage of cloud-based apps has increased the Chromebook's appeal.
Even Adobe is producing a version of its venerable Photoshop app to run on Chromebooks now.
Consumers choosing Chromebooks are focused on affordability and versatility, says Stephanie Van Vector, an analyst at ABI Research. The devices are cheaper and easier to maintain than most comparable laptops and, with a built in keyboard, seen as more productive than tablets.
But that productivity advantage quickly slips away if the Chromebook can’t access the Internet. “Chromebook will show stronger growth in regions where connectivity is more prevalent,” says Van Vector.
Google introduced the first Chromebooks in 2011, and manufacturers have greatly improved the product since then. This year’s newest models include a Toshiba Chromebook with a high definition 13-inch screen, while Dell and Acer (2353.TW) have upgraded with faster Intel (INTC) Core i3 processing chips.
Still, Chromebook sales this year aren’t likely to reach more than a few percentage points of total laptop sales. Gartner forecasts sales of 5 million Chromebooks in 2014 compared to total worldwide PC sales of about 300 million. Chromebooks comprise a much more significant portion of U.S. laptop sales alone, however.
Windows-based laptops remain by far the most popular overall, followed by more expensive Apple (AAPL) models. But some analysts see Windows getting squeezed between tablets and Chromebooks at the low end and more capable Macs at the high end.
Lately, Chromebooks even have been displacing sales of more expensive iPads in schools, according to a report from IDC. Schools ordered 715,000 Chromebooks in the third quarter versus 702,000 iPads, IDC said.
Chromebooks appear to be in a fierce fight for sales at leading electronics retailers, as well. On Amazon (AMZN), for example, Chromebook models were the 2nd, 5th and 9th best selling laptops on Wednesday. But cheap Windows computers priced under $300 occupy five slots in the top 10, including a $230 ASUS model in first place.
Microsoft (MSFT) clearly feels some threat from Chromebooks. It has partnered with several laptop makers to create $200 Windows laptops on sale for holiday shoppers.
One such model, the HP Stream 11, comes bundled with a year of access to Microsoft Office, a $70 value, and a $25 gift certificate to the Windows app store. Microsoft also matched Google's Chromebook offer to give buyers 1 terabyte of free online storage. Wall Street Journal reviewer Joanna Stern called the Stream "a $200 laptop that's worth the price," while warning that it was slower than a Chromebook at many tasks.
Holiday shoppers looking for something speedier in the same price range may just be picking up a few more Chromebooks.
