OStatic

As GigaOm reports today, Intel believes that the rate of cannabilization of notebooks by lower priced netbooks is sitting at around 20 percent. That's what the company's European sales chief told Reuters at a company event. This trend remains very positive for open source in general, including but definitely not limited to Linux. It's also an issue that is likely becoming a growing sticking point for Microsoft.

In a post yesterday, I made the point that the best way for Linux netbooks to get increased market share is for manufacturers to deliver products that beat Windows alternatives--with Google's Android operating system showing promise. Today brings a flurry of video-based evidence that there is outside-the-box thinking going on in this area. In addition to a slick new line of netbooks from Dell available with Ubuntu pre-loaded, Gizmodo has a video up of a Dell netbook running the Cupcake version of Android. Here are more details on some very interesting videos.

As noted by Dana Blankenhorn in this post, Linux pundit Bill Weinberg is pondering whether Linux will survive as an OS for netbooks. Many of the early netbooks from Asus were Linux-based, and I saw Asus netbooks running Linux this past weekend at my local Target store, but there are still a lot of questions about whether there will be much of a forward-going market for Linux netbooks. Blankenhorn makes the point that the sales channel is a problem: I tried out some Linux laptops last year and, while there were some glitches they held promise. But when it came time for me to lay down cash, there was no Linux kit on the shelves. Is Microsoft's might in the retail channel too great for Linux netbooks to be successful in the long run?

Dell continues to push forward with Linux-based notebooks and netbooks. As Betanews reports, the company's new Mini 10v netbook is available for Windows and Linux simultaneously. The Mini 10v sells for $299, runs Ubuntu Linux 8.0.4, and includes a 1.6-GHz Intel Atom N270 processor, a 10-inch display, a 120GB or 160GB hard drive (good storage capacity for a netbook), 802.11g and b Wi-Fi, a memory card reader, and a 1.3-megapixel webcam. According to Betanews, Dell also plans to offer a subsidized version of the netbooks, where buyers who agree to a two-year online service plan will get the netbooks at ultra-low costs.

As the Register notes, there is some evidence emerging that Dell may be working on netbooks based on the Android operating system. The Wall Street Journal reports that software maker BSquare issued a press release which said it?s coming up with a system to use certain Adobe Systems software on heretofore unannounced Dell netbooks running Google?s Android platform.? The Journal also reports that both Dell and BSquare have said the announcement shouldn't have been made, although neither company has denied that Android netbooks are in the works.?