Netbooks Bring Down Laptop Market Revenue

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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  • Honis
    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!"
  • the_krasno
    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.
  • invlem
    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