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The Apple Core

Jason D. O'Grady & David Morgenstern

Death to the netbook, long live the netbook

By | May 26, 2010, 10:02am PDT

Summary: While the netbook’s days may be numbered. I put that number at about 365.

http://images.smh.com.au/2010/02/02/1085586/420-ipad-kindle-tablet-420x0.jpgZDNet’s own Larry Dignan has a great post up this morning in which he concludes that netbooks are quickly being relegated to a niche.

In three years, the netbook may be just a nice footnote to the industry. The demise of the netbook has been predicted before. Now we seem to be at an inflection point where the anti-netbook bandwagon is filling up.

A major contributing factor, it appears, is the iPad. At least according to a report out by Retrevo.

The Retrevo Pulse Study asked netbook, laptop, and iPad owners and buyers what products they considered this past year and what they ended up buying. It also asked what they are currently considering and which products they are leaning toward.

Study Highlights:

  • After the iPad was announced in January, 40% of people surveyed held off on buying a netbook, and bought an iPad instead.
  • 30% of people surveyed held off buying a netbook after the iPad was announced in January. Then, they bought a netbook.
  • Of people currently looking to buy an iPad or Netbook, 78% of them are leaning toward an iPad. 22% are leaning toward a netbook.
  • Of people who bought a laptop or netbook last year, 35% choose a netbook. 65% chose a laptop.
  • Of people who are looking to buy either a laptop or a netbook this year, 35% are looking to buy a netbook. 65% of them are looking to buy a laptop.

Retrevo asked people who were considering buying an iPad or a netbook: Did you hold off on buying a netbook after the iPad was announced in January?

  • 30% No. I went ahead and bought a netbook.
  • 40% “Yes. But I eventually bought a netbook.
  • 30% “Yes. And I bought an iPad.

Pretty damning report for the netbook but there are still somethings that a netbook/notebook do better than a tablet, take video conferencing for example. And while you can write small to medium form pieces on a virtual keyboard and medium to long form on a Bluetooth keyboard or keyboard dock, it still feels like a kludge to me.

The netbook and notebook still have about another year lead on the tablet but after then, all bets are off.

Image: Sydney Morning Herald

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Topics

Jason O'Grady is a journalist and author specializing in mobile technology. He has published six books on Apple and mobile gadgets and his PowerPage blog has been publishing for over 15 years.

Disclosure

Jason D. O'Grady

Jason D. O'Grady is the creator and editor of O'Grady's PowerPage, which has been publishing mobile technology news since 1995. He maintains an advertising relationship with the following legacy advertisers on the PowerPage:

  • Amazon Associates
  • Google Adsense
  • Tekserve
  • Advertising on the PowerPage is brokered by a third-party agency (BackBeat Media) and he recuses himself from these negotiations.

Biography

Jason D. O'Grady

Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984.

He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging. He has been a frequent speaker at the Macworld Expo conference and a member of the conference faculty. He also co-founded the first dedicated PowerBook User Group (PPUG) in the United States.

After winning a major legal battle with Apple in 2006, he set the precedent that independent journalists are entitled to the same protections under the First Amendment as members of the mainstream media.

O'Grady is the author of The Nexus One Pocket Guide, The Droid Pocket Guide, The Google Phone Pocket Guide, and The Garmin nuvi Pocket Guide (Peachpit Press), the author of Corporations That Changed the World: Apple Inc. (Greenwood Press), and a contributor to The Mac Bible (Peachpit Press). In addition, he has contributed to numerous Mac publications over the years, including MacWEEK, Macworld, and MacPower (Japan).

When he's not writing about Apple for ZDNet at The Apple Core, he enjoys spending time with his family in New Jersey.

Talkback Most Recent of 30 Talkback(s)

  • Keep making things up .....
    Right. That's why Intel CEO Paul Otellini recently predicted "This market (Netbooks) that we created will grow north of 20 percent year-on-year this year. It's got a 15 percent CAGR (compound annual growth rate). Still no sign of material cannibalization of the notebook market by Netbooks,"
    ZDNet Gravatar
    roteague
    26th May 2010
  • The iPad is lame. Plain and simple
    It is a device that could have been much more, but Apple choose to ignore that.
    ZDNet Gravatar
    Cylon Centurion
    26th May 2010
  • And you haven't stopped any sales, Nicholas
    So it really doesn't matter what the iPad is supposed to be among NBMers who are still living in the past..
    ZDNet Gravatar
    ubiquitous one
    28th May 2010
  • RE: The iPad is lame. Plain and simple
    @NStalnecker

    Yeah! I should hate my iPad! I'm sitting here surfing the internet using 3G and reading your comment thinking, "How lame!" I'm also thinking how lame that I haven't turned on my travel laptop (an Archos 9 Tablet running Windows 7 Pro on a SSD) since I got this "lame" iPad. I'm also thinking how "lame" it is to virtually control my work laptop in Russia while sitting here in a park in London with my "lame" iPad.

    Lame lame lame! I guess I am not sophisticated enough to know that I should want more from my "lame" iPad, which makes me feel even MORE "lame".

    So in summary, I don't like your comment and I probably wouldn't like you if I ever met you in real life.

    Lame...indeed!
    ZDNet Gravatar
    smirkingdevil
    31st May 2010
  • Where is the camera?
    on the iPad ?
    You how people with self worth and esteem issues buy Rolex or Tag Heuer watches, well that's the same demographic that the iPad is designed for.
    "Oooh look at me, I have an iPad"

    The only complaint about the netbook I have is the screen real estate, it's a tad small, I prefer a few more pixels and replaced mine with a notebook for the same price funnily enough.

    Did the survey ask if people knew they couldn't Skype with the iPad or Youtube wouldn't work on it.
    Surveys, can always be manipulated to get the results you want.
    ZDNet Gravatar
    Ashtonian
    26th May 2010
  • RE: Death to the netbook, long live the netbook
    @Ashtonian
    You people are hilarious. You state the reasons you like your netbook - and that's all great - sounds like you made the right choice.
    Lots of people don't feel those are necessary features and the iPad does a lot of things (useful things!) that people do like - and does them much better than a netbook! It's clear not everyone thinks it's a piece of junk!

    In other words - to each their own!

    Personally I can't justify it, but then I could never justify a netbook either... wink
    ZDNet Gravatar
    rossdav@...
    26th May 2010
  • RE: Death to the netbook, long live the netbook
    @Ashtonian: I don't have a Rolex, but I do have an iPad that was bought as an alternative to a netbook. Of course, if a 1.5-lb. netbook with 10 hours of battery life existed, I would have gone with that. But things like a lack of a camera for Skype don't figure large in my personal productivity needs.
    ZDNet Gravatar
    Stephen Howard-Sarin
    26th May 2010
  • ZDNet Gravatar
    DeRSSS
    26th May 2010
  • RE: Death to the netbook, long live the netbook
    @Ashtonian Pay attention. The camera attaches through the iPad data port, and that allows one to focus it in any direction one likes.

    Not sure about the Youtube/Skype issues... or their work-arounds. but let's not pack it off into obscurity before giving it a PROPER look. You just proved by the camera comment that you haven't done so yet.
    ZDNet Gravatar
    SpectreWriter
    27th May 2010
  • Rename it!
    Netbooks should be called "travelbooks". They are fantastic for traveling. Small, light and with great battery life. Watching movies, checking email, offloading photos from digital cameras or occasionally editing documents is easy with netbooks. Try that with iPad...
    Netbooks have their purpose and it is wrong to say that they are dying simply because some bozo does not understand it.
    ZDNet Gravatar
    paul2011
    26th May 2010
  • Travelbooks! I like that designation.
    @pauliusp I bought my Netbook about 20 months ago for a month long trip to Australia and a weight restricted one carry-on by the airline. I have Office 2003 along with Photoshop and other programs that allow me to function completely while on the road. It is the only computer I travel with now
    ZDNet Gravatar
    wwgorman
    27th May 2010
  • RE: Death to the netbook, long live the netbook
    @pauliusp
    Um, WHAT?!? Do you even care that you don't have a clue?
    "Watching movies, checking email, offloading photos from digital cameras or occasionally editing documents is easy with netbooks. Try that with iPad...[sic]"

    Watching movies on iPad Check
    Checking e-mail Check
    Offloading photos from camera Check
    Editing Documents Check

    All are possible and easy with an iPad. You were saying?

    And try RTFA! It is not based on a lack of understanding, it is based on a statistical analysis. Make stuff up much?
    ZDNet Gravatar
    DeusExMachina
    27th May 2010
  • So let me get this straight...
    -The economy tanks in 2008. People needing a laptop likely bought a netbook at $300ish 'cuz it did what they needed to do at a price that was remotely affordable.
    -Apple announces the iPad, a device that got just as much marketing hype as the iPhone did.
    -The economy starts to get a bit better.
    -Netbook prices creep up as OEM realize they're selling the things at cost.
    -Apple releases the iPad, and it became the must-have gadget of the spring.
    -The iPad gets more fanfare after release, the netbook line overall continues to creep up in price such that a high-end netbook and a low-end laptop are within a few dollars of each other.
    -Netbook sales plateau as a result.

    ...and we're using that sequence of events to determine that netbooks have a year to live? IMO that depends on how well the iPad continues to sell, and the satisfaction of the owners. Also IMO, the sales numbers of the second-gen iPad are going to be significantly more telling, since people will have actually seen and used one and likely have a somewhat better idea as to whether it will suit their needs.

    Joey
    ZDNet Gravatar
    voyager529
    26th May 2010
  • In what universe is the economy getting better
    just because the Big Brother tells you we've always been at war with EastAsia, doesn't mean it's true.
    ZDNet Gravatar
    frgough
    26th May 2010
  • Netbooks are creeping up in price not just because of cost
    ...it's because OEMs are doing it wrong.

    Netbooks are supposed to be simple and cheap. Manufacturers keep trying to cram more features in them, make screens bigger etc - of course prices are going to creep up, and netbooks are no longer netbooks.

    I'm fed up with ZDNet's biased spin on netbooks (and overly positive spin on pointless expensive gadgets).

    I've just taken myself off the daily newsletter. Keeping the weekly one for now, don't know how long that will last with crappy reporting like this.

    ANALYSIS and REAL COMMENTARY please.
    ZDNet Gravatar
    james.faction
    26th May 2010

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