Netbook sales to rise as notebooks fall flat

Demand for Netbooks has been hot and is likely to get hotter, as sales of their big brother, notebooks, are set to remain steady this year.

Netbooks are projected to grab a 20 percent share of the worldwide market for 2009, according to a report released Monday by researcher DisplaySearch, an NPD Group subsidiary. Consumers are expected to scoop up almost 33 million Netbooks this year, marking a sales gain of close to 100 percent from last year's 16 million.

But notebook sales are set to be flat this year, with 129 million units shipping, virtually the same as in 2008, according to DisplaySearch's Quarterly Notebook PC Shipment and Forecast Report. This would make the first year ever that the notebook market showed no sales growth. DisplaySearch defines notebooks as laptop computers with screens measuring 12.1 inches or larger.

By region, this year's Netbook sales are forecast to jump 260 percent in China, 137 percent in North America, and 88 percent in Latin America.

(Credit: DisplaySearch)

The affordability of Netbooks, which typically have fewer features and are less powerful than notebooks, has fostered their growth around the world, the report noted. Last year, 45 percent of Netbooks were shipped to Europe, the Middle East, and Africa (EMEA), winning a larger market share over notebooks.

The availability of Netbooks has also boosted sales, DisplaySearch said. Telecommunications providers such as AT&T, Sprint, and Verizon Communications have marketed low-cost, subsidized Netbooks to their customers.

The notebook market itself has been hurt by reduced IT spending, stalling purchases on new units. If Windows 7 takes off at the same time the economy revives, notebook demand among enterprises could shoot up next year.

Notebooks also have carved out a large chunk of the global portable PC market, and they are not being replaced by Netbooks at this point.

"It is clear that buyers want a lightweight device but that they also want a bigger display," said John F. Jacobs, director of notebook market research at DisplaySearch and author of the report. "While (Netbooks) have certainly created a new market, our research indicates that they are predominantly used as secondary PCs by consumers and are not replacing notebooks."

[make_or_break]

No surprise to me. My netbook does well over 90% of what I demand from my regular laptop without the added heft and bulk. Sure it's slower that current laptops, but compared against my older Dell that Atom processor does pretty well.

[Super2online]

I completely agree. We bought 4 netbooks for our children, grades 4, 5, 6 and 7 and they are absolutely perfect in that role. I would not of been able to do that without the price advantage these systems provide.

[stepyourgameup]

Damn Super2online, couldn't you have spaced those kids out a little more?

[myles taylor]

I think it's terrible. It's destroying a market. The margins are too low and while that seems good for customers, it's really not. Less R&D, bad for the business meaning they'll have to cut back on other things. Also I think that people don't understand what they are getting when they get a netbook. Oh, here is a cheap computer! Let's get it! That's peoples' mindset. Maybe for kids and stuff, yes, but not especially good for anything else.

[pmfjoe]

But it is good enough for what most people use it for, and that is all that matters.

[wangbang]

I bought a netbook precisely because it's portable. I don't want to lug around a big laptop when I'm traveling. I used to use a Palm TX, but that turned out to be too limited. My Asus Eee PC is perfect for me. If necessary, it's still okay when using remote desktop through a VPN, too.

[lovehandle]

I think the Netbook is a great invention. For years and years, Intel and Microsoft have marketed the need for faster CPU, more memory, higher capacity storage. In realty, we don't need all that.

Reason: Google and cloud computing. I'm letting Google take care of my storage needs. I don't need the speed cause I'm just using Gmail, Google DOCS, Google Calendar, Google Sync to handle all of my business needs. And for my entertainment, I watch Youtube, HULU and play internet games.

Final Verdict: No need for laptops.

[Rawnchie14]

@lovehandle

Faster computers are needed for certain tasks, so that "marketing idea" is sometimes necessary, especially if it has to do with your profession. Heavy computing is needed for graphical work, or video editing/rendering no matter what you do. Plus Cloud Computing hasn't even come close to taking over yet, so don't jump the gun with bold statements. I hope it succeeds too, but shoot.

Also it's funny you bring up Microsoft and Intel, considering Atom is one of the prime-time netbook processors, and Windows 7 is being geared to low powered hardware. But hey, everyone likes to construct an "evil corporation" mentality I guess.

Plus as good as Google Docs can be, it doesn't yet replace the need for actual documents. If you're running your business needs through Google Docs 100%, then I mourn for your business.

[Seaspray0]

@myles taylor. The only reason you think it's terrible is because your favorite company doesn't sell any.

[Random_Walk]

What happens, happens.

The notebooks will always have a use and a place (and Apple seems poised to dominate it, since the typical netbook demographic is more attracted to price than anything else... and that's HP/Dell's forte').

The netbooks OTOH are pretty useful - and do everything that most folks want them to (email, web stuff, etc). I have no use for one because the apps I play with require a lot more horsepower than a netbook can provide, and a 13" (or smaller) screen is way too frickin' tiny for comfort.

I travel with mine (17"), no sweat... yeah it's big, but it's more fun at the hotel room to play a game online or do some CG artwork, than to flip around the (usually limited) hotel cable stations and such. To each their own, I guess.

OTOH, other folks seem to enjoy having a netbook, and they're great for kids (cheap enough so that breakage isn't earth-shattering, but powerful enough for them to do homework, light gaming, and such).

[clamenza]

It's a shame Intel's keeping a lid on Atom. It could be much faster but Intel doesn't want to cannibalize more profitable products too much.

[Inconnux]

The other day my father showed me an ad for a netbook and said look how cheap laptops are now! This is the problem with netbooks, people consider them laptops and expect them to do the same work. People just see them as smaller inexpensive laptops. I had to explain to my dad that a netbook is a different product than a laptop and that a netbook is not as powerful as a laptop. Those people who know the limitations of a netbook are quite happy with them... but those who consider them mini-laptops will be sorely disappointed.

[Seaspray0]

The netbook of today is more powerful than the notebook of a few years ago. It's the lack of optical drive and the size that will make the most impact on buyers.

[TekCoach]

While Netbooks will not take over the Notwbook space in the near future, I do see it comming. Netbooks are great because it give consumers choice. The problem is if the consumer is educated enought to make that choice. If a user really just needs the abilities of a Netbook, then that user has a cost effective solution and no longer has to pay for resources he doesnt need in a notebook. Companies like Apple, Dell, HP, and other will have to adapt to the differing revenue/margin profile of the market that is true.