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Adrian Kingsley-Hughes

They're both wrong - Nothing can revive netbook sales

By | December 30, 2010, 1:24pm PST

Netbook sales are declining. In fact, if rumors from the supply chain are to be believed sales of netbooks are crashing through the floor. Can Windows 7 save netbooks? What about Ubuntu? My take on the situation - nothing can revive flagging netbook sales.

Some of my ZDNet blogging colleagues believe that netbooks can be reborn from the ashes. Zack Whittaker thinks that Windows 7 will be the savior of the diminutive device.

Nope. Wrong.

On the other hand Chris Dawson thinks that the netbook life-raft will come in the form of Ubuntu.

Nope. Wrong again.

See, the reason that notebook sales are declining has nothing to do with what OS they run, and everything to do with the reason they became so popular in the first place.

The netbook was a device that gained popularity through adversity. When money was tight at the depth of the recession the humble netbook with its small screen, modest processor and petite amounts of RAM was a no-brainer choice for people looking for cheap and cheerful sub-notebook. People bought netbooks not so much because the device solved a particular problem, but because they were cheap.

Sure, people loved the excellent battery life and compact size of the netbook, but the same people were just as likely to complain about the lack of performance, and the cramped keyboard and screen. The netbook was a device that had compromise written all over it, but people were willing to overlook these compromises because of price.

But things have changed. Not only are people happier to spend more money, other dynamics have come into play. Notebooks are not only cheaper than they were a year ago now but devices at the budget end of the spectrum are also more powerful thanks to Moore’s law. Then there are tablets. After languishing for over a decade as a niche/enterprise product in the hands of Microsoft and its OEMs, Apple proved not only that there was a market for tablets, but that there massive mainstream interest in the platform. Apple has shifted millions of tablets and paved the way for Windows and Android models to follow in 2011 (and, hopefully tablets based on Microsoft’s Windows Phone 7 OS).

Tablets are where the interest will be during 2011. Netbooks aren’t going to die any time soon, but they’ve waxed, hit their peak, and are now waning rapidly … and I don’t see anything changing that.So  Whittaker and Dawson can stop squabbling and both go buy a tablet ;)

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

Disclosure

Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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RE: They're both wrong - Nothing can revive netbook sales
Antonio Rodulfo 5th Jan 2011
I do think Tablets' is one market and netbooks' is another one.
I have been suffering the size and weight of my 15", full-flegded notebook for years, even with the best backpack to carry it around.
I bought my HP Mini in July 2009 and have never taken a better decision! My back-ache is over, I can do almost everything I used to do with the 15" horse.
No o.s. (iOS, Android or any Redmond-born) can revive netbook sales, because they're not o.s.-related. Manufacturers' hunger for money has a lot to do with current market status.
A bit better performance (in CPU power and in battery lasting time) combined with moderated prices would bring sales up again, no doubt!, even if not as high as they expected them to be.
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Tablets are the new thing?
Michael Alan Goff 30th Dec 2010
If netbooks can go down to 200 or lower per netbook, while having a decent atom with 1-2GB of RAM and a decent sized (~100-150GB HDD)? They will be able to hold off tablets because of the price point. Either that, or Android will come out at around that and they'll be screwed.

One or the other should happen eventually.
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The click bait conspiracy
Economister 30th Dec 2010
@goff256

That is all that needs to be said on this topic - for all 3 blogs.

Some like the mother and some like the daughter and they are both fine.
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Obviously they are
Michael Alan Goff 30th Dec 2010
That doesn't make what I said any less true. >_>
full size keyboard, dual core, 2 GB RAM, 64 GB SSD. And of course keep the under $400 price point. Problem is, manufacturers want to hold the margins and hate selling notebook like computers at netbook like prices, but, they will have no choice eventually.
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I don't think that's going to happen
Michael Alan Goff 30th Dec 2010
unfortunately.
@DonnieBoy SSDs are EXPENSIVE. Your requirement for the SSD alone will eat-up $200 of the total cost. Then you want a dual core ..... for a device that will only do web related stuff.
@DonnieBoy
Believe me, if that could de done, I would buy the thing!
@DonnieBoy

It's not that manufacturers want to hold the low margins, it's more like they're forced to keep netbooks at the low margins to get any sales. The only reason netbooks were selling was because they're cheap devices at a time when consumers were looking to save money as mentioned. One of the main reason they're not selling as well today is because, well most are cheap (cheap in quality, and performance). Manufacturers are now stuck in that 'netbook box' seeing razor thin margins, and because of declining sales are probably forced to cut more corners on these devices. Netbooks are a perfect example of what happens when you race to the bottom.

If netbooks were to graduate to full size keyboards, dual core, SSD and 13 inch screens as you suggested, then wouldn't they suddenly enter into notebook/laptop space at notebook/laptop prices?
@DonnieBoy Thats not a netbook, thats a laptop. At that point you go buy a damn laptop.
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old Netbooks (1GB Ram, Single core Atom, 160GB hard disk) are dead. 2011 will welcome the 2nd wave of mini laptops, but they should be called net beasts. Some of them already appeared in 2010 (Dell Inspiron Duo, which is a hybrid device with tablet mode and laptop mode) Intel new generation of low cost SSD drives will arrive at the same time, 2 core CPUs, USB 3.0 and 3GB of DDR3 RAM will power this second wave of tiny hybrid devices. I'm sure, the tablets or the smartphones won't have the success that Intel is preparing for 2011!
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if
eatingacheesepastieforlunch Updated - 30th Dec 2010
If I was going back into education, I'd buy a netbook.
to surf the net on and for my homework.
I wouldn't by a tablet as
1. they are more expensive
2. I prefer keyboards and buttons - not fan of touch screens
3. more likely to be mugged if your seen with something apple, or shiny expensive tech.

I have had an atom 160 gb netbook for a month to use for my work, and the keyboard was small to use but a usb 5 pound keyboard sorted that job out and I had to wear my glasses for long periods of time looking at the screen - but in a budget student carry around I think the netbook is ideal for example a samsung n145 is around the 200 pound price range.

It beats the 400 pounds for what I paid for my computer back in 1998 when i was at uni
instead of touch pad!!
@DonnieBoy touch screens suck for data entry.
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The only reason I am going to hand you this one is because the the old "sub-notebook" category has, in-fact, crashed through the floor in price. So what would have been a 1000.00 mini notebook in the past, is now easily flirting with the 450-550 price point. When you can get a high quality Toshiba, Lenovo (X100e), et al in that price range, obviously there's no reason to settle for the cheaply built 300.00 Netbook. Even the Dell Adamo has DECREASED price while INCREASING specs. It's not that consumer's wallets are going UP in size, it's just that the situation is still so dire manufacturers are just bringing the price of everything else DOWN to the affordability range. "Netbook" is simply a categorical nomenclature that is going to blur out of existence.
2 GB RAM, 250 GB hard disk, Celeron. Runs great. Would rather have 64 GB SSD, touch screen, of course dual core, 10 hours of battery life, less than $400. That IS coming.
@DonnieBoy My brother got a new toshiba with a dual core Athlon II with 4 GB ram Windows 7 Home Premium and a 15.6 screen that is LED along with a ton of other stuff for $400.
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Touch screen instead of touch pad, dual core Arm processor, 10 hours of battery life, 11.6 inch screen, 64 GB SSD, full size keyboard, 2 GB RAM.
Because tying and viewing your type on a flat surface of a tablet SUCKS and this takes the table out of the EDU market unless you have one just for video and web consumption.

the tablet form factor will never be able to replace a copetent keyboard which at this point in time make sthem a toy.

Now, get voice recognition into the OS (lke Win7) then this may become more than a niche. There are a lot of iPads collecting dust on coffee tables around the world now that the novelty has worn off.....

Pat
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AKH, you're wrong too
Joe_Raby 30th Dec 2010
It isn't tablets that will replace netbooks: it will be continually lower cost notebooks with close-to-mainstream performance, and AMD is making a killing with their basic Vision specs in this area. People are underwhelmed by the lack of performance from netbooks when then can get an AMD V-series processor with 2GB (or often more) of RAM, a larger screen, a big hard drive, and Radeon graphics that will play 3D games respectably (cough, unlike Intel "HD" gfx) for the same money. Even Athlon II dual core systems with 4GB of RAM and 64-bit versions of Win7 Home Premium can easily be found in the under-$400 price range.

Microsoft was right to call netbooks "ultra low-cost PC's", but now the definition has to change. The newer Atom systems certainly aren't competing in performance to AMD Vision, and AMD's Fusion will only make that harder on Intel. The Atom is getting stomped on and consumers are staying away from them for good reason. On one hand, the Atom with its integrated graphics is lackluster, not even able to do HD, let alone games. On the other hand, NVIDIA's Ion platform requires godawful amounts of power and heat dissipation for the GPU, and it doesn't make up for the poor CPU anyway. Compare those both to AMD's 2-chip solution for multicore computing with HD graphics + DX11 3D, and it's easy to see that it's a superior solution. I'm looking forward to CES.

BTW: just out of curiosity, has AMD said whether or not the "netbook"-class chips will have AMD-V? That's one point that makes any low-end AMD Vision system a great system for business use - just upgrade the OS to 7 Pro and make sure it has 2GB+ (is that so hard?) for RAM and XP Mode will fly. On a $400 machine. Try to tell me of an Intel system that will let you do that for the same money.
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Rumormonger
Dietrich T. Schmitz, ~ Your Linux Advocate 31st Dec 2010
Adrian, cite where netbook sales are declining.
Otherwise, move on mate.
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I've got a 200GBP netbook, with a CPU as fast as an iPad, with storage twice the size of the biggest iPad, with an SD card reader that costs extra on an iPad, and I can connect it to my TV without an additional connector that would cost extra on an iPad. That also doesn't need the cost of an additional case to protect the exposed sheet of glass, when I'm carrying it around. That I can use a 5GBP mouse on, for precision photo editing if needs be, and that I can use a full sized 5GBP keyboard on if I need to.

Give me a tablet for less than 200GBP, that matches that spec, and my Netbook is history... any takers?
For a lot of us we are still getting deeper into the depression. The people that are driving up spending fall into two categories, By luck and smarts they have survived what the depression has thrown at them with their career intact which is 80% of the population. They are un or under employed and are spending what they don't have because they are American and it is in our DN A. But with government record deficits, country after country going bankrupt and China thinking about pulling the plug on usand many of us spending what we don't have a 1930's style great depression is inevitable. Maybe Quantitative easing two through ten postpones the inevitable for many years or maybe a nuke goes off in Times Square tonight guaranteeing 2011 is 1933 with social anarchy but 1933 with our divided country falling apart will happen
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I love my netbook...
brian@... 31st Dec 2010
I love my netbook (an HP Mini). Small enough to easily tote around (it fits in my car's glove compartment out of site of prying eyes- try doing that with most laptops), long battery life (>9 hours), runs Windows apps, and if I need a bigger monitor, I can simply plug it into my main PC's monitor and enjoy 1680x1024 resolution. Likewise for keyboard activity. I bought it primarily because I needed a platform to host some testing software and I was uncomfortable using the office laptop for the purpose. Since then I've found several other uses for it (like remote-desktopping into the office systems if I need to provide remote support, and video-conferencing (it's got a built-in webcam) and playing my music collection in the car via the BT interface), and would buy it again if I needed to.

Improvements I'd like to see? Well, a larger screen for the same form factor (there's a lot of real estate around the screen that seems to be going to waste), and perhaps a backlit keyboard.

One feature I'd really like to see though is the ability to do a seamless image backup/system restore via network connection (so if the HDD crashes for any reason, restoration can be as simple as replacing the drive, turning the netbook on and plugging it into the network). If wishes were horses... happy
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Netbooks Are Not Dead
wwgorman 31st Dec 2010
Netbooks are less expensive than tablets and usually have very adequate Wi-Fi reception. They are like a smaller computer that is easy to travel with and are not much larger, if at all, than tablets and they run familiar software----not a lot of individual apps you must download and install. My Asus Netbook integrates very nicely with my Wi-Fi and I can save material from a and to a network hard drive effortlessly. I can, if I choose also have 3G or 4G wireless with a USB drive. My Netbook operates with my external GPS just fine----does a tablet?
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netbooks
Jimster480 31st Dec 2010
are completely different from tablets. netbooks have keyboards, run FULL OS's and get work done. Tablets are for nothing other than media consumption. so the same people buying netbooks are not going to be the people buying tablets, since tablets serve almost none of the same functions as netbooks.
Not unless they change the machine format (again).

The breakthrough of the netbook was the incredible portability- but you ended up with a lousy screen, and a cramped keyboard. What we need now is a full sized keyboard, and NO screen...

No conventional screen, anyway. It's time to re-visit HUD's (Head Up Displays) that clip over one eye. If such an option has decent resolution, and less eyestrain, we will have achieved the next level of portable (wearable) computing.
During the past several months, getting a good netbook deal has been very difficult for everybody I know. People who got an early Asus netbook running XP usually loved it, but when they later tried to get another for their office or a friend, it became an online scavenger hunt. I'm not so sure what the issue is, but if netbook sales really dropped, it's likely completely artificial. I know that Microsoft and Intel have not been fond of netbooks and have set artificial limits on them in terms of memory, screen resolution and disk size (XP-based netbooks are equivalent in power to mid-range notebooks from just a few years ago, so they would eat into Intel's higher end hardware sales, and XP shows up Win7 as sluggish rubbish on the same hardware) so I wouldn't be surprised at all to find that they are behind the shortage, drop in sales, or whatever else you want to call it.
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There's another dynamic in play too..
TheWerewolf 3rd Jan 2011
The Atom processors are growing in power while the price of lowend Celerons are dropping - so there's a move to 11.2" laptops with Celerons while there's a similar move to 10.2" netbooks with dual core Atoms and they're both converging on the $350-$500 price range with a surprising amount of overlap.
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I do think Tablets' is one market and netbooks' is another one.
I have been suffering the size and weight of my 15", full-flegded notebook for years, even with the best backpack to carry it around.
I bought my HP Mini in July 2009 and have never taken a better decision! My back-ache is over, I can do almost everything I used to do with the 15" horse.
No o.s. (iOS, Android or any Redmond-born) can revive netbook sales, because they're not o.s.-related. Manufacturers' hunger for money has a lot to do with current market status.
A bit better performance (in CPU power and in battery lasting time) combined with moderated prices would bring sales up again, no doubt!, even if not as high as they expected them to be.

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