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Netbooks Bring Down Laptop Market Revenue

By - Source: Tom's Hardware US | B 21 comments

Love them or hate them, netbooks are definitely serving a lot of people's needs in the laptop department, which makes it awfully unfortunate to have to note that they're bringing the over all revenue generated by the laptop market down.

DisplaySearch reports that, despite netbook shipments rising, sales of the cheap-as-chips PCs are dragging down revenue for the overall laptop market. A study released by the firm yesterday shows that the portable PC market was $26.4 billion, up 10 percent from Q1 but down 5 percent from the same period last year.

Netbooks are very affordable and for people who have little use for a powerful machine, they cover everything in terms of what they need their computer to do. Indeed, netbook shipments continue to grow. DisplaySearch notes that revenue generated by netbooks in Q2 topped $3 billion, up 37 percent sequentially, and from the Q2 2008 to Q2 2009, netbook revenue growth was up 264 percent.

However Channel Web cites John Jacobs, director of laptop research at DisplaySearch, who says the company expects netbooks to continue to harm laptop market revenue as the year goes on. "For 2009, we expect continued [average selling price] erosion across all portable computer categories, leading to the first [year-over-year] decline of portable computer revenue."

Read more here.

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  • -5 Hide
    Honis , October 9, 2009 6:11 PM
    I really hope the people who are buying netbooks aren't associating the lower performance with real PCs. I predict the netbook will only help drive up Mac sales in the coming quarters due to the "Gah this netbook sucks and is slow and... it must be Windows/Ubunto's/etc. fault! Damn PCs I'm getting a Mac!"
  • 0 Hide
    the_krasno , October 9, 2009 6:18 PM
    AMD is working with a netbook/notebook hybrid using a new mobile processor and it will have dedicated ATI graphics I believe.

    I can't wait for that.
  • 6 Hide
    invlem , October 9, 2009 6:27 PM
    This trend is probably due to the fact that notebooks were supposed to be mobile, yet over time they grew bigger, heavier and more bloated.

    Unless you need to run CPU/GPU intensive tasks a netbook (and the huge convenience of its portable size, go figure) is all a person needs. Toss in the cost of ownership and laptops really aren't required for the general user.

    All I need when I'm on the road is access to my office files, power point presentations, email and internet browsing. A net book is more than powerful enough for all those tasks. I see no reason to burden myself with a bulkier and heavier item. Not to mention battery life on the netbook is 8 hours, something i certainly havent seen form a laptop
  • 4 Hide
    steiner666 , October 9, 2009 6:34 PM
    i got a $2000 dell laptop 4 years ago when i started college and i got an asus netbook this year for $300 that performs better than it and has a battery that lasts over twice as long. It's able to do everything I need without any issues. ppl want cheap. really, all they have to do is improve the flash video performance on netbooks to where they can watch HQ youtube/hulu and then everyone but gamers will be totally satisfied with them... and gamers should know better than to go with a netbook for their needs. With the economy being what it is, it's no surprise that ppl no longer want to shell out 3x as much money for a laptop when the netbook suites their needs and is more portable.
  • 6 Hide
    hellwig , October 9, 2009 6:37 PM
    Yes, surely netbooks, and not the recession, are responsible for reduced profits. Just like pirates, and not shitty movies and the recession, are responsible for lower movie studio profits.
  • 1 Hide
    quantum mask , October 9, 2009 7:19 PM
    the_krasnoAMD is working with a netbook/notebook hybrid using a new mobile processor and it will have dedicated ATI graphics I believe.I can't wait for that.


    huh? A netbook/notebook hybrid? How does that work? Why? What can a netbook do that a notebook can't?
  • 2 Hide
    Kelavarus , October 9, 2009 8:47 PM
    quantum maskhuh? A netbook/notebook hybrid? How does that work? Why? What can a netbook do that a notebook can't?


    Size/power efficiency.

    And they're already out. Not sure why people are saying they can't wait...

    http://www.newegg.com/Product/ProductList.aspx?Submit=ENE&N=2034940772%201722149527&name=AMD%20Athlon%20Neo
  • 3 Hide
    Anonymous , October 9, 2009 8:47 PM
    Where is there a laptop that has a battery that actually lasts EIGHT HOURS or more? Less than two hours is not enough battery time, if laptop makers want to improve market share they need to actually give us a decent battery and make the laptop more efficient at battery usage not to mention that most people don't really need a 19 inch screen and a laptop thats bigger than their tv! The size and battery life are what make netbooks so attractive, if your on a metro train and don't want anyone to know your using a computer then netbook is for you. If you wanna walk around with the netbook in a bag downloading stuff then it's easier with a netbook with a long battery life. Netbooks are great diagnostic platforms too, data recovery through usb hdd adaptors etc it makes netbook use more popular.
  • 1 Hide
    Anonymous , October 9, 2009 8:53 PM
    "AMD is working with a netbook/notebook hybrid using a new mobile processor and it will have dedicated ATI graphics I believe."

    You mean the HP Pavilion dv2 ? I sure fits the description...
  • 1 Hide
    False_Dmitry_II , October 9, 2009 9:32 PM
    hellwigYes, surely netbooks, and not the recession, are responsible for reduced profits. Just like pirates, and not shitty movies and the recession, are responsible for lower movie studio profits.


    You're wrong, they keep breaking box office records...
  • 3 Hide
    cruiseoveride , October 9, 2009 10:31 PM
    There aren't many real netbooks anymore. The whole craze started with $200 machines. Now $200 netbook is a dodo.
  • 0 Hide
    wildwell , October 10, 2009 1:03 AM
    Oh well, I guess mobile computer manufactures now have to focus on volume sales.
  • 0 Hide
    Anonymous , October 10, 2009 3:19 AM
    Well then, market has decided they want something cheap; focus on something cheap,and stop whining why noone buys expensive laptops anymore!
    Perhaps they finally see it does not pay off, paying $2000 for a laptop that costs half next year, and is able to do as much as a $500 laptop 2 years down the road!
    And perhaps people understand that it can be cheaper!
    People can get a good $300 netbook that looks as good as a $1500 laptop!
    Learn from that Sony!!!
  • -1 Hide
    Anonymous , October 10, 2009 3:25 AM
    cruiseoverideThere aren't many real netbooks anymore. The whole craze started with $200 machines. Now $200 netbook is a dodo.

    A netbook is and should never cost more than 300!
    All those 10, 11, 12" screen excuses is just bull!
    Why would anyone pay $100 more for a 11"?
    It has the same freaggin resolution,and only a larger keyboard (and perhaps BT)!
    Netbooks are ok from 9", and $300 or less. $200 is just not achievable. Hardware manufacturers would go bankrupt if they had to sell these things so low; or, you would end up with a 400Mhz CPU, 800x480/800x600 resolution, 256MB RAM,and a 4GB MLC SSD!
  • 0 Hide
    buwish , October 10, 2009 10:11 AM
    I've never really been a fan of netbooks. I prefer a machine with some guts, whether it's a desktop of laptop. In comparison to a netbook, a laptop is Goliath in terms of performance. I think as more internet based apps become more, let's say resource hungry, netbooks are going to have to step it up in terms of power, which in turn will defeat their purpose. However, for those who just surf the web and other minimal tasks, they are fine, for now.
  • 0 Hide
    TheOnlyPenguin , October 10, 2009 6:25 PM
    i love my netbook, who needs a full blown laptop, i have a desktop for any serious computing, but something small and light that lets me use the internet where i need it, perfect.
  • 0 Hide
    Regulas , October 10, 2009 8:10 PM
    I have one netbook, an Asus with the 8.9" screen and 160Gb HD. It came with XP and I use it solely for my music under iTunes and a Radio Shark. The little keyboards and screens and such are just too small for me to work with and I am not a big guy with fat fingers. I am not alone and think that why so many larger netbooks are appearing.
    I think the perfect size for a laptop is 13.3 - 14.1" range, maybe 15" but thats pushing it. Under that is getting too small and over is getting too big.
  • 0 Hide
    Regulas , October 10, 2009 8:16 PM
    The poor mans Apple Air is what I plan on getting next month and put the new Ubuntu 9.10 release on it coming out on the 29th of this month.
    http://www.amazon.com/Acer-Aspire-Timeline-AS3810TZ-4880-13-3-Inch/dp/B0029U1526/ref=wl_it_dp_o?ie=UTF8&coliid=I1X1MCAUKX17MC&colid=36BKWAAQ74UCS
  • 1 Hide
    SchizoFrog , October 10, 2009 9:20 PM
    As a second machine netbooks have their uses and a definate place in the market... However as a main or first time machine they are just not versatile enough without a built in optical drive. I would love a netbook that was a little thicker to accomadate for an optical drive. For some reason small, low power laptops (basically netbooks with an optical drive) cost an excessive premium.
  • 0 Hide
    azz156 , October 11, 2009 4:04 AM
    I've noticed something since netbooks were released, here where i work most major software is now coming on usb thumb drives. netbooks are killing dvds & possibly blu-ray :( . I'll stick with my bloated hp :p 
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