Intel and Google Dive Further Into Chromebooks

Google unveiled more than 20 new Chromebooks this week, powered by Intel's chips.

May 7, 2014 at 10:30AM

A few years ago, Google's (NASDAQ:GOOG) (NASDAQ:GOOGL) Chromebooks seemed a bit laughable. Netbooks had largely come and gone, so how were these supposed to be any different? But now Chromebooks pose a growing threat to both Apple and Microsoft, thanks in part to Intel's (NASDAQ:INTC) processors.

You can't keep a good chip down
At the Google and Intel Chromebook event this week, the two companies announced more than 20 notebooks powered by Intel chips, set for release later this year. That's a huge jump from just four Intel-powered Chromebooks in 2013. The new notebooks run the gamut of pricing and features, including some with touch capabilities and 11 hours of battery life. Intel also said it's working on creating the first Chromebook to sport a 64-bit Chome operating system, and has plans for an education-focused Chromebook as well. 

But it's not just that Intel is finding its way into more Chromebooks that's the good news for Intel, it's also the fact that Chromebooks are continually expanding their reach. 

Chromebook rising
For example, in 2013 Chromebook commercial channel sales in the U.S. surpassed Apple's MacBooks. That's no joke, the inexpensive notebooks -- designed for mostly online use -- made up 9.6% of U.S. commercial channel PC sales, while Apple took just 1.8%, according to NPD data.

The notebooks have also been a thorn in Apple's side in the education sector. At the beginning of 2012, Chromebooks held just 1% of the education notebook market, but at the beginning of this year that number had jumped to 19%. Apple currently leads with 47%, followed by Microsoft with 28%.

Google made additional steps into education recently when it stopped scanning education emails for display ad purposes and launched Classroom, a forthcoming app for teachers to create and organize student assignments.

Foolish thoughts
Intel powering more Chromebooks is obviously a good thing for the chipmaker. The company has struggled to find its way into mobile devices, and Google's notebooks could be one of the last major waves in the PC industry. Intel's core competency is PC chips, so it's a great fit right now.

For Google investors, the new Chromebook models paired with continual sales growth is a good thing, but won't change much in terms of its bottom line. The company is so massive and Chromebook sales make up a very small part of its revenue. Still, both companies seem to have struck a chord with consumers at a time when Windows notebooks are losing steam.

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Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple, Google (A shares), Google (C shares), and Intel. It also owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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