Report: Netbooks now one-fifth of portable PC shipments

Summary: DisplaySearch, a unit of the NPD Group, found that netbooks represented 22.2 of portable computers shipped worldwide in the second calendar quarter of 2009. That's up from 5.6 percent a year ago, and 17.8 percent in the first quarter of this year. The total notebook PC market exceeded 38 million, according to DisplaySearch's research.

Earlier this year, it looked like the netbook market might have peaked. But maybe not....

DisplaySearch, a unit of the NPD Group, found that netbooks represented 22.2 of portable computers shipped worldwide in the second calendar quarter of 2009. That's up from 5.6 percent a year ago, and 17.8 percent in the first quarter of this year. The total notebook PC market exceeded 38 million, according to DisplaySearch's research.

In its "Quarterly Notebook PC Shipment and Forecast Report," Display Search also noted that Asus, the pioneer in mini-note PC (netbook) space, "has been steadily losing share because Tier 1 brands like Acer, HP, Dell, Lenovo and Toshiba have become increasingly aggressive in this segment."

The report notes that a number of netbook vendors are delivering pricier netbook models with bigger screens (a trend Microsoft is attempting to keep in check by limiting the screen size of netbooks that will qualify for lower-per-copy pricing for Windows 7).

"In addition to many other key players in the supply chain, Microsoft indicated it is their desire to increase the ASP (average street price) of mini-notes, DisplaySearch reported. However, "a significant increase to the ASP of mini-notes may deter consumers that are predominantly using mini-notes as secondary PCs,” according to a DisplaySearch press release, quoting John F. Jacobs, Director of Notebook Market Research for DisplaySearch.

I am skeptical that Microsoft and some of its partners' attempt to introduce a new, pricier "ultra thin" category of Windows 7 alternatives to netbooks will take hold. We'll find out in less than two months, when Microsoft makes Windows 7 generally available and some of its PC partners introduce new Windows 7 form factors.

Topics: Hardware, Microsoft, Mobility, Windows

About

Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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18 comments
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  • The point of netbooks

    is that they are cheap, portable second computers. More expensive portable computers may sell and they may sell well, but they are not competing with the same market. Customers would only want to drop more money for a portable computer if it were going to be their primary household (or work) computer. They are not going to get one of these so that they can relinquish the primary computer to the kids for homework, or to give to their kids for homework, or to bring on the road to merely stay in touch but not have a complete workload to worry about.
    Michael Kelly
    • Agree! Why does nobody get this?

      A netbook is a dirt cheap traveling companion which requires no additional support luggage to bring it along. Toss it in a suitcase and go. Nobody in their right mind would replace a desktop with it. Nor would they replace a full-blown laptop with a netbook for tasks where a laptop is a better choice. There are specific times when each is appropriate.

      The fact that netbooks are CHEAP, VERY portable, and have LONG battery life is the magic TRIAD of features which made them take off like a rocket. That's the perfect combination for a road warrior machine. They have enough power to do email, watch videos on a plane, listen to music, browse the Internet, or video chat. They can even edit full-blown documents in a pinch.

      Netbooks are just another tool which covers a specific set of needs. The ONLY reason they are taking away from low-end laptop sales is because laptops used to be the only portable choice and were drastic overkill for many road-warrior tasks. Now people have another choice available, so they get the right tool for the right job.

      Eventually, I see most people having a laptop on their desk and ALSO owning multiple CHEAP netbook-like devices for various tasks. For example, leaving one in the living room to use as a quick-browser device for when they see web sites on TV. Perhaps another might be used as an eBook reader. Another might be kept in the car. Another might be on the kitchen counter. Commodity pricing will make this happen.

      Once a good CHEAP marriage of netbook and touch-screen smartphone happens, they'll really take off. Sometimes you just want a slightly bigger screen than your phone without sacrificing portability.
      BillDem
      • Two out of three

        "The fact that netbooks are CHEAP, VERY portable, and have LONG
        battery life is the magic TRIAD of features which made them take off
        like a rocket."

        I can accept the last 2 as being critical for some people, although I
        never found my 17" laptop to be a problem in either regard (it only
        weighs 6 pounds and gets 4 hours or so which is more than I need).

        I just disagree with the first one. Netbooks aren't really all that cheap
        when you compare them to sale priced laptops. For example, I bought
        my daughter a 15" Toshiba laptop with 2.33 GHz Core2Duo (no Atom
        junk), 2 GB RAM, 250 or 320 GH hard disk, DVD burner, and discrete
        graphics chip for $379 at Best Buy (regular price was $399, but it was
        on sale). That puts it right into the range of a netbook with 8 or 9"
        screen, tiny keyboard, etc. If you search around, you can always find
        similar deals.

        Small size and battery life are the real drivers for netbooks (other than
        the people who don't bother looking around to see if they can get a
        real laptop).

        The problem is that there are lots of people in that latter category.
        Surveys on netbook purchasers are consistently very negative - a huge
        percentage of people who buy netbooks are unhappy with them
        because they don't understand that netbooks are necessarily limited
        functionality computers and expect them to perform like a real laptop.
        The only explanation I can find is that these are people who would
        have been happier with a real laptop but just bought the netbook
        because of its price (without realizing that a little bit of research
        would have gotten them a real laptop for about the same price).
        jragosta
        • Which reminds me...

          Of the "good old days" when a laptop was said not to perform like a "real desktop." Now I feel old...
          zkiwi
        • huh?

          If netbook purchasers are so unhappy with their machines, then why do sales keep going up? In fact, the dissatisfaction rates are not much higher than they are for laptops.

          As for prices, yes, laptop prices are going down, but so are the prices for low-end netbooks. 8 inch netbooks are now under $250.
          Eduardo_z
      • yes

        I like your idea of people owning lots of little machines. Let just add that for most purposes an ARM netbook would work just fine.
        Eduardo_z
  • I can say one thing . . .

    in MS's defense on the screen size thing. When the screen gets above a certain size, in this case 10", is it really a Netbook? Isn't one of the whole selling points for the Netbooks their small form factor?

    For that matter, if you had one with a screen size of 7" and put a Core duo under the hood, would that be a Netbook too? Not according to MS . . .

    Is it the Form factor or power, or both that truly defines a Netbook?

    I also find it interesting that after all the nay-saying over the need for a Netbook, the market seems to have spoken in favor of them in the amount of 1/5 of all new portables sold are Netbook class.

    I'm just curious as to everyone's thoughts on these . . .

    JLHenry
    • MS is fighting a losing battle.

      No company can slow down Moore's law. I have had an aspire one since fall of last year,it has become my primary work computer. EXT4 and KDE 4.2, it is amazingly fast, and still does what I need it to do. Even MS had to improve Windows to keep up, and with the optimizations constantly being added to make such "marginal" software faster and faster, well, this "tired" atom is running my VPN, VNC to my workstation at work and VMWare Player of a local image of the server I am testing. All while I am cooking dinner and checking in on it's testing progress once in a while, lol.

      MS first tried to convince (and many others in these forums) the market they are "internet applicance". The people I have supplied them to use them like general computers, lol. Then they tried to enforce limits on hardware. It will be a roaming target, especially once true dual core Atoms are released.

      It's a fool's errand, netbooks are completely fine for the YouTube watching, IM sending, Facebooking crowd. I even do video editing on my netbook. Gaming aside, what's the technology that's driving the need for cutting edge? I even watch fullscreen (granted, not true HD) video just fine.

      TripleII
      TripleII-21189418044173169409978279405827
  • I'm not surprised!

    I'm not surprised...right now I work in retail with electronics and a large percentage of customers inquire about netbooks whenever I show them portable computers. I guess the sub $400 price point and tiny-size is what many people want.

    In fact, I may get one too once Windows 7 starts coming preinstalled on them!
    ScottCarmichael
    • It's the sub $300 price point that grabs people.

      You can get mine (8.9" screen) for little more than $230 now, well heck, just found a white one for $200 flat. :D

      TripleII

      P.S. eCrater has it, you can find it if you want, don't want a post deleting link in this message.
      TripleII-21189418044173169409978279405827
  • Turn this around...

    ...and you get 80% of sales still going to traditional notebooks. I point this out because of all of the back patting going on here over what is still basically a niche market.
    itpro_z
  • I love mine

    I have an Acer Aspire 1 with the pre-installed Linpus Lite. We speak of it as my "secondary computer" but in many ways, it's become my primary computer. I take it everywhere. I use it more than my desk top computers. It does everything I need it to do, and even a little bit more. After all, what do I need most? Web access? Document editing? Music? Email? The fact is, it does it.

    When I need heavy computing power, or a bigger screen, I still have my 4 desktop machines to choose from.


    mheartwood
  • I won't travel with my laptop - data is too valuable

    One thing I think the manufacturers need to realize is that people buy things for different reasons. I want a netbook for traveling because it won't contain any valuable data. I want a netbook with a large screen and keyboard so it is easy to use and SSD so it is quieter and uses less battery power.

    I hope hardware vendors don't comply with Microsoft's demand about screen size. I have bigger hands and old eyes to see smaller screens.

    I'd prefer to buy a netbook with Linux installed but if given no choice will buy one with Windows just to get the hardware I want and then re-install.
    James Royer
  • Not going away

    No matter how much M.S. and the vendors would like them to go away, they are a product with traction.
    Their uses are limited, but they are perfect for those uses-
    The observation they are good secondary computers is spot on- in our enterprise one can be used purely with MS-RDC and webmail, so no data is kept on the device, indeed it is not on our domains. A simple cost effective alternative to more expensive devices if the goal is mail or internet, too inexpensive to ignore.
    We are looking at them to be a logical part of our plans in the next three years to help capitate cost in our enterprise...
    david.cameron@...
  • RE: Report: Netbooks now one-fifth of portable PC shipments

    The question is not the correct definition of the word "netbook," its what do people want.

    Microsoft defined a netbook as 10 inches or under because it knows a lot of people would like to buy 11 inch machines with Starter Edition on them, and that would cut Microsoft's profits.
    Eduardo_z
  • what next?

    The future for netbooks is going to be really interesting. In the next few months we are going to see the new Atom n450 with much lower power consumption, and also various ARM chips. And they will be runing Windows 7 (Atom only), CE (ARM only), Android, Ubuntu Netbook Remix, Moblin, and various desktop Linuxes.
    Eduardo_z
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