Netbook sales soaring, eats into the notebook market share

An NPD report predicts huge netbook sales growth in 2009, suppressing that of the notebooks.

Strongest gainer?

Did you say size does matter?  Well, in the computer industry a totally different viewpoint seems to be starting to take shape.  Netbooks were originally intended for users who travel a lot, especially business travelers who need to stay connected but at the same time would prefer something that is not as heavy as the 3 kg machines. But then once the competition increased, companies started to upgrade these ultraportable tiny systems with the latest cutting edge technologies, and in fact as the computer market grows, the thin line of difference between the netbooks and notebooks are fast disappearing. 

Last time we heard, IDC reported 3.6 million netbook sales in Europe in the last quarter of 2008, which formed about 30% of the total notebook sales. This time around, it is the NPD analyst Displaysearch, whose report states a staggering growth of 65% in the netbook sales in 2009, compared to the growth in notebook sales of only 3%.  So what could be the reason for this sudden outburst of consumers going for these tiny machines? The report says it's the worsening economic situation that is providing the biggest stimulus, with customers now looking for a lower cost of procurement rather than a lower total cost of ownership.  Some speculate that this growth is cannibalising the companies’ own full featured notebooks market as the customers are buying netbooks instead of which earlier they would have bought the full-fledged notebooks, which obviously comes at a better margin for the vendors.

“With the lone exception of Apple, all of the top 15 PC brands have entered the mini-note market, initially as a response to competitive threats posed by Acer and Asus, but also to satisfy demand for low-priced, entry-level PCs,” reportedly told by John F Jacobs, director of notebook market research and author of the report,” “The mini-note market is effectively segmented into two main categories: low-cost PCs for emerging and education markets, and consumers and professionals seeking light-weight, ultra-mobile products that offer a modicum of PC-like functionality in a thin and light form factor.”

The netbooks are experiencing their strongest growth in China and the Pacific Rim areas. Japan is an exception though, as the demand there has always been low.  The developing economics especially are witnessing huge growth in the sales of these low-cost machines.

So like I earlier reported, are these sales concentrated to the 3-4 major players only?  Well, pretty much so.  Now even Apple is rumoured to be working on a net book version of its Macbook air.  Will Apple eventually enter this net book market?  Keep checking this section for the earliest news.