Aug. 12--Ever since I sat down with Intel last spring to hear more about its tiny Atom chip, mini computers with these chips have been popping up everywhere.

ASUS was one of the first companies to add the Atom, which made sense because it has had the petite Eee PC for the past year. Lenovo is the latest, unveiling the IdeaPad S10 last week. These "netbooks" or "nettops" are a new category of computers; they are smaller, lighter and often cheaper than laptops. With Internet access, the computers are targeting those who want something between a smartphone and a laptop.

Nearly every PC maker has jumped into the netbook frenzy, making me wonder whether consumers really want these computers. So I asked a market research firm that tracks the PC market closely.

"Our position right now is that they're not going to be as big as some people think," said Richard Shim, a PC analyst with IDC Corp.

"A lot of the hype was promoted by the media, playing up the ASUS Eee PC.

And some companies have a vested interest, like Intel," Shim said.

Nevertheless, he added, "We're going to see all the big names get in there."

Sylvania recently unveiled its Sylvania g netbook. Acer has its Aspire one (although, according to an Acer representative, a Gateway netbook isn't coming anytime soon). MSI Computer Corp. has the MSI Wind, and ASUS has two new models of its Eee PC, plus a new desktop. Others are expected from Hannspree, BenQ, Clarion, Gigabyte and Compal. And I just heard from Averatec in Santa Ana. It plans to launch an Atom-based netbook by Christmas.

Toshiba America Information Systems Inc. won't comment on what it has in the works, but the Irvine computer company said the netbooks are an important new area that "offers a unique growth opportunity that should be thoughtfully considered," said Jeff Barney, vice president and general manager.

"The netbook has tremendous potential, expanding a user's on-the-go access to basic computing features such as e-mail, Web surfing, instant messaging and digital photo browsing by providing consumers with a secondary PC that complements today's powerful, full-featured laptops through ultra-mobility and a low price point," he said.

But smaller, lighter and cheaper means a sacrifice.

The ASUS Eee PC I've been playing around with for a few weeks has a 7-inch screen surrounded by two speakers. It feels like a plastic children's toy, which I can live with. It's just the minuscule keyboard that I find impossible to type on unless I use the two-finger method.

The hype of netbooks, however, appears to be fueled more by companies than consumers.

"When I talk to manufacturers, they tell me it's a defensive move. They don't want to give up the opportunity to someone else in case it balloons and then it'll be harder to get into the market," Shim said.

Even Microsoft reacted defensively because early netbooks relied on the Linux operating system. Microsoft now offers a slimmed-down version of Windows XP for devices. (Most netbooks don't have the hardware to run a full version of XP well, let alone Vista.) Intel had said it expected such machines to be priced in the $200 to $250 range. But all the ones released in the past month are $399 and up.

Besides the limitations -- tiny keyboards, slower processors, minimal storage space -- the prices are similar to the cheapest laptops. A Dell Inspiron, for example, has a 15-inch screen and a usable keyboard for $499.

For about the same price, netbooks have 7- to 10-inch screens, and it is considered a perk when the keyboard is 85 percent the size of a laptop's (see Lenovo's IdeaPad).

Debby Lee, of ASUS, says its Atom PCs include Bluetooth, the more expensive and durable solid state drives of 12 GB to 80 GBs, larger screens plus a scratch-resistant case. Comparably, the company's cheapest Eee PC, at $299, is a Bluetooth-less model with 2 GB of storage and a 7-inch screen.

"From our point of view," Lee said, "it is a mobile Internet gadget. It will not replace your desktop or laptops at home." IDC forecasts that worldwide sales of netbooks will reach 3.5 million this year and triple to 9.5 million to 10 million units by 2012. IDC only counted netbooks up to $499, Shim said. It needs to raise the max to include $599 models as well.

"There are segments where this makes sense. We think education, particularly among younger kids," Shim said. "We don't think this is a dead duck."

714-796-4952 or tchuang@ocregister.com

THE LATEST CONTENDERS

--Lenovo IdeaPad S10: Has a 10.2-inch screen, a keyboard that is 85 percent the size of a laptop's keyboard and an energy-efficient LED backlit display to conserve battery. Also includes Wi-Fi, two USB ports, 4-in-1 card reader, Express Card slot, webcam and Windows XP. Two configurations available: one with 512 MB of memory and 80 GB hard drive, or 1 GB memory and 160 GB hard drive. Available in October starting at $399.

--SYLVANIA g: Has a 7-inch screen, a Linux-based operating system and weighs 1.8 pounds. It starts at $399. Coming this month, Sylvania is adding an 8.9-inch and 10-inch model to its netbook lineup -- both run on Intel's Atom chip. Those are expected to cost less than $500.

--ASUS Eee PC 901: Has an 8.9-inch screen, 12 GB storage, 1 GB of memory, Bluetooth, Wi-Fi, a webcam and a battery that lasts about 7.8 hours. It's $549. Two other Atom-based Eee PCs, the 1000 and 1000H, are $699 and $649, respectively, because of larger screens and more storage space.

--MSI Wind NB: The 2.6-pound Wind has an 80 GB hard drive, 1 GB of RAM, Bluetooth, a 1.3-megapixel webcam and a keyboard that is 80 percent of a full-size notebook. Other features include a three-hour battery, three USB ports, and a 4-in-1 card reader. It's priced at $480.

--Acer Aspire one: The 2.17-pound one has an 8.9-inch screen, Wi-Fi and a three-hour battery. Other features include a webcam, 5-in-1 memory card reader plus an SD card reader, and three USB ports. The $379 one comes with an 8 GB solid-state storage drive and 512 MB of memory, or for $399, users can get the 120 GB regular hard drive and 1 GB memory instead. A $449 model includes a seven-hour battery, 8 GB solid-state drive and 1 GB memory. Runs on Windows XP or Linpus Linux Lite.

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Story Source: The Orange County Register