Netbook Market 40% Down - Microsoft

We are not really the pessimistic type of writers here, but 40% is a pretty substantial drop. Analysts picked up that number quickly and pointed to Intel and AMD, which did not paint a similar scenario, even if the overall average selling prices (ASP) increased and a drop of netbook processor sales was apparent. Microsoft indirectly accused Intel of cheating with its charts as the company apparently removed netbook CPU sales from its ASP charts entirely and took those products out of the equation.

We have been wondering for a while whether the tablet market is complementary, whether it has the potential to kill the netbook or whether it is a phenomenon that is limited to Apple as the PC industry has yet to produce a sucessful tablet. However, if the tablet kills the netbook in the end, it would somewhat dramatic for Intel, as the netbook was really the only successful product category the company created in recent history.

Remember the UMPC? Dead. The MID? Yup, dead as well. The netbook? It's still breathing, but it needs new ideas.

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  • proton9
    tablets are a fad.
  • kinggraves
    Smartphones took a share of netbooks before tablets were even becoming interesting. If you can browse the web and check your mail on your phone, there's no need to use a netbook for those basic functions. Tablets took another share on their own because they work well for basic media and ebooks. Netbooks do however have some advantages like upgradability, a real OS, and a keyboard that simple OS tablets can't compete with. There is a place for all these devices because the customer's needs differ.

    The market is changing though when it comes to portable devices. We're seeing a lot of "hybrids" between tablets and netbooks. If they can find the right mix to make a product that fits everyone's needs, that hybrid device could put netbooks AND tablets out of business. Netbooks themselves seem to be at the limit of their abilities as well. Fusion was supposed to be the game changer for netbooks, but if you look at the devices using the E-350, it's pretty much either cheap, full size, lowend notebooks or expensive, high end (by netbook standards) netbooks. The original point of netbooks was to be affordable, otherwise they're just the "ultraportables" of old that never sold. You still have to go Atom if you want a cheap netbook (even though you can get an HP DM1Z rather cheap if you play HP just right). So I think the traditional netbook might be going out of fashion, returning to it's ultraportable roots.
  • alidan
    netbooks and tablets will share market for a while.

    if i want a mobile computer for typing and crap, ill get a netbook.
    if i want a mobile thing for internet, id go a tablet

    but if i want anything else. ill build a pc.

    untill a tablet incorperates a real keyboard and not an on screen pos, and a stand that is built in, there will always be a netbook market.

    at least... until laptops as in 15inch" get really cheap, like 500$ and 1080p capable.