On Monday, The Wall Street Journal reported that “snazzier” laptops were stealing market share from netbooks. The same day, Fast Company declared an end to the netbook phenomenon.
The reason, they say, is that buyers have wised up and figured out that that netbooks are underpowered and uncomfortable for typing. And with the worst of the recession apparently over, consumers are digging deeper into their pockets for more powerful systems. Netbook sales are also being threatened by the emergence of the iPad, the industry’s first viable tablet computer, and other tablet form factors.
That’s not to say that netbook sales, which drove growth in the overall computer market the last few years, will reverse direction. Over the last year, netbook sales grew 20 percent, according to FC, and have “stabilized at about 12 percent to 18 percent of the entire consumer portable computing market in the U.S., E.U and Japan.” These statistics are based on sales of systems running Windows.
It seems to me that, even at 15 percent of the portable market, netbooks are still a good business to be in. Most netbooks today run Microsoft’s Windows OS and Intel processors. Those companies charge netbook makers a premium compared with emerging netbook alternatives including Google’s Chrome OS and Android OS and AMD processors. Ultimately, as those alternatives take hold in the market, netbook profit margins should get fatter for vendors, providing an incentive to stay in the business.
Intel is also working on more powerful Atom processors that should help drive the market.
Netbook makers, aware that the category cannot maintain torrid growth forever, have been quick to incorporate updates including larger screens, faster processors and new software. If only smartbook providers were as quick.
Lisa
