Apple very well knows that they can never make a netbook priced below $500...so basically they will not much of a chance standing against MSI, HP, Dell in this area. Apple make good products (no doubt), but making a computer for less than say $400 is very hard...that is basically not their chosen segment.

http://www.livbit.com

The rest of the comment, from Seeking Alpha:

"That said, we do look at the space and are interested to see our customers’ respond to it. People that want a small computer so to speak that does browsing and e-mail, might want to buy an iPod Touch or they might want to buy an iPhone. And so, we have other products to accomplish some of what people are buying netbooks for and so, in that particular way we play in an indirect basis.

And then of course, if we find a way where we can deliver an innovative product that really makes a contribution, then we will do that and we have some interesting ideas in the space."

So...a dismissal of netbooks on one hand, and an acknowledgement of "interesting ideas" on the other.

"But then "not playing" that space doesn't necessarily rule out a low-priced tablet, does it?"

No, it does rule it out. Apple will never make anything it can't mark up. Now they may make a netbook and charge $2000 for it, but Apple will never call it a netbook. Apple will never be 'for the people'.

Everyone vent, but in the end this is a productive and useful format and it will be exciting to see if Apple makes it into the space before Google does.

Apple sells highly proprietary hardware and software. Proprietary = single source of supply = high prices. Their 15" laptop - the MacBook Pro - is a reasonably but not overwhelmingly competent machine that sells for $2500 (base) in a market where equivalent machines can be had for half the price, or less. The Apple brand cachet - basically "I'm cooler than you" - has made this approach successful. But in a world where creative commons, GPL, and other community open licensing and standards are growing, I think their success will be short.

Rather than compete, they have positioned themselves as a "high end" product. Many other companies have gone this route, and in the end most if not all have eventually failed.

You mean high end failures like Mercedes, BMW, Lexus, and Oakley? The thing you pay for in an Apple product is a clean, flawless customer experience. I contend that if you deliver that kind of experience, you'll ALWAYS have a customer base.

I believe that Apple Products are engineered very well and this cost needs to be passed on to the consumer. It has been my experience for the past 20 years that the Apple Macintosh line has been a excellent investment even though the cost is often more expensive to its PC counter part. The Physical Hardware is also like a piece of Art. Thats my opinion anyways.

Spent most of my life in the PC world, MSDN, and so on.... Got Mac, got happy.... for all you uni-dimensional geeks out there...... it is the user experience and usability that matters!!! Interoperability, compatibility, reliability..... all the bilities.

I love Apple and I am OK with PC, but that does not mean we cannot push the envelope and get netbooks, potentially even unheard of new OS's and file systems, and hey what about the smenatic web and the next generation of computing.

Netbooks offers just another opportunity for change in a dynamic (thankfully) creation environment. But where there is change there can be stress and confusion. Apple embraces change while maintaining order, calm, and style... ENJOY!

If Apple made a netbook with there current profit margin standards that means they could only spend about 250 to 300 on the hardware. They would spend that just on the aesthetics not on the hardware that actually makes the machine what it is. If they made a netbook it would run about 800. 500 for the netbook, 300 for Apple.

A sluggish operating system, expensive antivirus (etc) software, problems getting third-party software to work, and virtually useless support options; Things I don't miss about PC computing. People were always asking me to troubleshoot their computers because there simply wasn't adequate help out there. After buying an iPhone and seeing the difference in consumer experience first hand, I "converted" to Mac - and I will never go back. Their business software is more well-rounded than ever, and cheaper. Most importantly, Apple creates outstanding products that are a joy to use. I am no longer a slave in PC tweaking hell. This company is ground-engaged in making the kind of products that only someone who loves technology could make. The possibility of computing being cool and fun is not just a dream. Macs are designed to be intuitive, and therefore easier to use. And last, but not least, they are easy on the eyes. Most manufacturers make products and promises in order to sell them; Apple delivers the promise and keeps it. If they see the netbook segment as something that will not be a first-rate experience for consumers, they will simply work on what they believe WILL be. They are about the end result; making great products for people who can appreciate the wonder of technology.

who cares about Apple ???
who cares about Netbooks ???
Time to move on from childish things.

this is the time that Apple should show their greatness....if they are really great, show it by competing with other brands that have netbooks...
or if they won't make netbooks which is hot today, Apple's sales will go down...

I own both Mac and Pc and I use my Mac the most,less problems with software and hardware conflicts.Sure Pc's are a little cheaper but I have never had the problems on a Mac that I have on a Pc. Would you put up with the amount of problems on a automobile that you do with a computer.