HP Takes on Chromebooks With a $200 PC

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Google Inc (GOOG) is beginning to put a serious scare into the personal computer industry. Chromebooks, the cheap laptops running Google’s Chrome OS, have been dominating K-12 educational sales in the U.S. for two straight quarters.

Windows notebook HP Stream 11, intro
Source: Microsoft

Apple Inc. (AAPL) is seeing its lead in the educational market shrink, while Windows notebook sales have also been hammered. The situation for PC makers gets more worrisome with the possibility that students accustomed to using Chromebooks could later introduce the cheap laptops into the workforce.

Microsoft Corporation (MSFT) has been taking potshots at Chromebooks all year in an attempt to protect its Windows notebook turf. It’s also promising low-priced Windows models to combat Chromebooks on price.

Can a cheap laptop with hardware compromises still manage to run Windows 8 and offer a decent user experience? There were many doubters but Hewlett-Packard Company (HPQ) is making waves with the new HP Stream 11, a $199.99 Windows notebook.

Is the Stream 11 worth the $200 price tag? Or is this another netbook disaster in the making? Read our review of this Chromebook-fighting Windows notebook to find out.

Windows Notebook (HP Stream 11) Review: More Than a Bright Blue Netbook

Remember netbooks?

Windows notebook HP Stream 11, runs Microsoft Office
Source: Microsoft

The last time Microsoft and PC makers tried to win over consumers with cheap laptops was a failure. Netbooks were small with terrible displays, poor performance and still cost more than most consumers were willing to pay.

Needless to say, the entire category eventually died off.

There has been considerable worry that Microsoft’s new cheap laptops initiative would suffer the same fate. A Chromebook can slash costs because it has a lightweight operating system, apps are cloud-based and there’s no concept of legacy software or peripherals to support. Cutting costs to the bone in a PC seems likely to result in something as hobbled as those netbooks.

The Stream 11 proves doubters wrong. Not only can it run Windows 8.1 decently, Microsoft Office also runs fine. And it gets excellent battery life.

Construction quality is good and while the display may be a bit dim, it’s perfectly usable. Chromebooks don’t have touch capability and Apple’s popular 11-inch MacBook Air has the same resolution. No-one can argue with its success.

The bright blue may not appeal to everyone, but remember the target demographic for the Stream 11 Windows notebook isn’t business users, it’s the education market — kids and families.

Windows Notebook (HP Stream 11) Review: They’re Practically Giving These Things Away

At $199, the Stream 11 is already the cheapest of the cheap laptops. It is even cheaper than many of the Chromebooks it competes against and less than half the price of the iPads Apple markets to its education customers.

Windows notebook HP Stream 11, cheap laptop
Source: Microsoft

And at the time of writing, Microsoft was knocking 20 dollars off the price in an attempt to spur holiday sales.

On top of that, the company was throwing in one terabyte of free OneDrive online storage and a free one-year subscription to Microsoft Office 365 Personal (worth $70).

With the discounts and freebies included, you’re looking at a Windows notebook priced at just over $100. That’s a pretty appealing bargain for parents and schools.

Windows Notebook (HP Stream 11) Review: Specs

  • 11.6-inch HD (1366 x 768) LED display

Windows notebook HP Stream 11, specs
Source: Microsoft
  • Intel (INTC) Celeron CPU @ 2.16GHz
  • 2GB RAM
  • 32GB Flash drive
  • HP TrueVision HD webcam
  • 802.11b/g/b Wi-Fi
  • SD card reader
  • 1 USB 3.0, 1 USB 2.0 ports, Bluetooth
  • HDMI out
  • 37 WHr lithium-ion polymer battery rated at up to 8 hours, 15 minutes of battery life
  • 2.72 lbs
  • Runs Windows 8.1, 64-bit

Windows Notebook (HP Stream 11) Review: Conclusion

Just as the MacBook Air forced Ultrabooks to up their game at the higher end of the portable PC market, Chromebooks are forcing Microsoft and its partners to fight to hold on to market share at the lower end.

Windows notebook HP Stream 11, conclusion
Source: Microsoft

With the Steam 11, HP has proved that a $200 Windows notebook is not only physically possible, it can actually be an attractive and useful machine.

A cheap laptop like this is going to be an exercise in frustration if you try to run Photoshop on it. You actually can do so (good luck finding a version for a Chromebook), but the hardware compromises will quickly become obvious.

However, the target demographic for the HP Stream 11 isn’t going to be running Photoshop. It’s for students using Word to write essays who want a compact and funky looking device to watch YouTube videos. It’s for parents who like cheap laptops as second PCs for the home. And it’s for school boards who are tempted by Chromebooks and their price, but like the idea of still being able to run familiar Windows software.

The HP Stream 11 hits its target pretty well. And Microsoft’s added purchase incentives make this inexpensive Windows notebook a steal.

As of this writing Robert Martin doesn’t hold any securities mentioned here.


Article printed from InvestorPlace Media, https://investorplace.com/2014/12/windows-notebook-review/.

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