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April 1, 2009 11:34 AM PDT

Faltering economy boosting Netbooks

by Erica Ogg
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While there's been discussion lately about what the best operating system for a Netbook is, there is no question that the small form factor PC is a runaway hit with consumers.

Acer Netbook (Credit: Acer)

In DisplaySearch's Quarterly Notebook PC Shipment and Forecast Report for the first quarter of 2009, the research firm says Netbooks are on track to grow 65 percent over the course of the year from 2008's totals. Conversely, traditional notebooks are expected to grow just 3 percent this year. And, according to DisplaySearch, Netbooks will comprise one fifth of the 133 million notebooks to be shipped in 2009.

It's an amazing growth rate, considering that Netbooks started from basically zero market share in the beginning of 2008. Just over a year after Asus made a splash with the Eee PC, now--with the notable exception of Apple--every one of the top 15 PC makers sells a Netbook. And despite the battering it's given the tech industry as a whole, the current economic situation is actually buoying Netbooks.

DisplaySearch analysts say that because many consumers are having to tighten their budgets, some are settling for a smaller, more lightly featured device like a Netbook until they feel more financially stable.

But the Netbook trend is not likely to last. DisplaySearch is forecasting that once the economy turns around, consumers will return to buying the notebook with the most features they can get for their money.

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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by joecandido April 1, 2009 11:56 AM PDT
I bought my netbook not necessarily because it was cheaper, but because I wanted something small and portable. In fact for the same price or less I could have gotten a fullsize laptop that is much more powerfull and has more features. I think the trend is not due to the economy but people wanting smaller and more portable devices. (not to mention they look cool as hell).
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by pjdamws April 1, 2009 12:15 PM PDT
I agree, I bought my netbook so that i could have a computer that I can throw in my backpack and carry it around all day without it feeling like I was carrying a brick all day. I sold a full size laptop just so I could get my Acer Aspire One and am completely happy with the purchase.
by aqnguyen87 April 1, 2009 12:15 PM PDT
I have an HP Mini 1000. Its a bigger version of my iPhone basically. I have a macbook for my website and photo editing needs, and a custom built desktop for my gaming needs. My netbook fits into this family perfectly by giving me a light, quick and easy way to access the full internet and take notes during class.
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by Marcus Westrup April 1, 2009 12:21 PM PDT
I spent 2 grand on a small notebook a few years ago, forgoing cheaper models with more features, ram, etc. just because I *needed* a small portable.
At 10" across it fits in a hotel room safe, it fits in a airline carry on bag, and in a pinch it will balance on one hand while I type with the other.

Any bigger than that, it would just live on a desk somewhere.
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by Super2online April 1, 2009 12:24 PM PDT
For $1300 I bought 4 netbooks for my children. They fit smaller desks in each of their rooms and provide enough horse power to run online games at the sites they visit. They are very happy and I'm retaining my sanity.
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by another_cissp April 1, 2009 12:26 PM PDT
That?s kind of a weak argument that the raise of netbooks is because of the economy. Its more likely because netbooks are a new buzz word for a small laptop which has always been around. Before they were just sold as small laptops.
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by kkohnen April 1, 2009 12:41 PM PDT
Small laptops have "always been around," such as the OQO and others. Netbooks = Small + Inexpensive + Cool! They make great travel computers when you leave your desktops at home and the office, and you don't want to take your $2k notebook just in case.
by russkeller April 1, 2009 1:54 PM PDT
I tend to agree with that. IT's got less to do with the economy and more about users common sense because they know they don't NEED a high end PC to surf the web run basic office apps. If that's all they need it for there's no point getting anything more powerful than that, your just wasting your money.
by Booklordjohn April 1, 2009 12:36 PM PDT
I question the conclusion that consumers will automatically migrate back to the larger notebooks. What data is this assumption based upon?

After carrying my ASUS701just about everywhere over the last year, I can't imagine switching back to an oversized machine loaded with a bunch of software and features that I seldom need or use.
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by La_Mont April 1, 2009 12:47 PM PDT
I will be purchasing a netbook in a month or so. For me, it is about size and portability. All I want is a decent machine to e-mail and surf when traveling. I also require a keyboard. I have two mac desktops and a macbook pro notebook. Netbooks are a product that fills a large niche. Why is having a desktop, high spec notebook, mobile telephone and netbook incomprehensible to most computer companies? Netbooks should evolve to having 98-100% keyboards, max out at 11 inch screens. The specs of current netbooks are where desktops were 4 years ago and are more than suitable for basic tasks. If computer companies continue their trend of spec wars on their full sized laptops and use low powered CPUs in the netbooks, the two markets need never overlap. Asus and Acer are moving into larger laptops. These are two different markets, consumers know this.
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by mrorie April 1, 2009 12:53 PM PDT
Love my EEE PC. Great for lounging around in bed and streaming Netflix movies.
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by sellitman April 1, 2009 1:12 PM PDT
This article must have been written about me. I bought this Acer Aspire 8 Gig SSD, Linpus model after loosing my job and my company laptop 5 months ago. Having a small 2 lbs Netbook is great for traveling and when I return to my job of road sales this baby is coming with me. Paying only $259 dollars for it was a plus being of limited income but now I hope never go back to carrying the brick I use too. My main computer at home is an iMac and my cell phone is a iPhone. I got all the bases covered. I love my Acer!
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by hypopig April 1, 2009 1:35 PM PDT
Nice article from Wired to the contrary -
http://www.wired.com/gadgets/wireless/magazine/17-03/mf_netbooks
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by edmetric April 1, 2009 1:59 PM PDT
I'm a Mac user who bought a netbook to personally try it out. The hardware has a lot of limitations - slower single core CPU, extra cost external optical drive, cramped keyboard and 1980's VGA analog instead of digital out. If you choose a model with a decent six cell battery (and you should), weight creeps up. Software is an issue. It doesn't do anything a MacBook or ThinkPad couldn't do better.

Cost and size are advantages for a webmail/browsing computer. It travels well. Bluetooth pairs with my phone to download pictures. The six cell battery does well.

I've got a pre-high school and a pre-college student who both spend a lot of time on their netbooks actually studying. The netbook seems to keep them organized and digging into their interests online.

If you're downsizing everything, including costs, a netbook will fit your lifestyle to keep you connected.
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by SactoGuy018 April 1, 2009 2:03 PM PDT
You can get a Netbook with a 160 GB hard drive, 1 GB of RAM and 802.11b/g/n Wi-Fi networking running Windows XP Home Edition for under US$400 nowadays. They're perfect as machines for web surfing, especially their portable size makes them perfect for use at public Wi-Fi "hotspots." These machines are a good reason why newspapers are dying--why wait for the news once a day when you can surf to news web sites to get news updated in real time at any Wi-Fi "hotspot"?
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by s.raven April 1, 2009 11:15 PM PDT
I have been a Mac user for many years and I have enjoyed using their laptops. The 12.1 iBook was great. Apple then lost sight of the fact customers wanted small and also lost sight of PC prices. I have also notice mainstream PC models becoming less reliable, some don?t appear to last for 2 years. Therefore, for me, the Netbook is small and light to carry and use. The Dell mini 9 I bought is robust and OS flexible but I also consider it to be disposable. If Apple join the game will they understand the rules these days?
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by fdunn3 April 2, 2009 5:12 AM PDT
I think DisplaySearch is going to be eating those words as even some of the higher end Netbooks overlap pricing on standard notebooks and they are still selling well.

The primary consideration for buying a netbook is not ONLY price but also size, weight, and in particular battery life. I have an Asus EeePC1000HE and with Asus's APU it gets a good 8-9 hours of life before it needs a charge.
Plus it and the power adapter and a bluetooth mouse (which I highly recommend) all fit in a case smaller than most womens purses aand doesn't weigh a ton.

I absolutely love my netbook and recommend them to those in our Institution that travel since you don't always have an ac power source handy.

The ideal configuration is a netbook with a cellular data adapter and plan.
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by maxvalue11 April 2, 2009 9:40 AM PDT
This makes a great, lower-power interface for the MajicJack USB device which delivers inexpensive phone service for 19.95/year, but requires that the PC it's connected to be ON. So I don't agree that people will eventually revert back to the full-size laptops.
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by Holly Klug April 2, 2009 6:53 PM PDT
Looking at PBS web site, the videos are set up for Apple Quicktime and Windows Media Player. How do you do that in Linux?
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by curmudgeonlygoat April 3, 2009 8:44 PM PDT
I bought my kids an Acer One with XP and the 160 GB HD for Christmas and was so impressed that I bought myself one right after Christmas. It is now April, and I use it almost exclusively when at home, only using the desktop for the very rare tasks which require a more powerful processor. I dock mine at home, but the kids don't bother, and one external optical drive is easily shared.
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by Mindshadow April 16, 2009 2:46 PM PDT
I have never purchased a laptop and never want to. The insecurity of having all of my computing on something that could so easily get lost, damaged, or stolen is unacceptable to me. Conversely, I am very happy with the ultra-quiet, rather large desktop that I have built for myself at home.

I have never purchased an iPhone. I have been tempted, a little, but not very much. I prefer to stick with devices that have fewer features but do them very, very well and very, very reliably. You won't find a timer on my coffeemaker, for instance - it's simple enough to start a pot myself, and a timer is just one more thing that could break.

So the Netbooks have me salivating. I would very much like a simple, small, lightweight laptop that I could take with me when I travel. All I want is something that could play a movie while I wait in an airport, download photos from my memory cards when I'm on vacation, and check my email every so often. For programming (what I do for a living) I will stick with my desktop. An iPhone wouldn't be quite enough to do the things I've listed. A Netbook, though... perfect.

Still waiting for that perfect combination of battery life, size, and price, but I think it's pretty definite that I'm going to get one. And the economy has nothing to do with it.
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