• On MovieTome: The 10 worst movies of 2009 so far!
October 8, 2009 11:48 AM PDT

Netbooks rise, notebooks fall

by Lance Whitney

Netbooks continue to soar in sales at the expense of the venerable notebook, according to a new report from DisplaySearch.

Revenues for Netbooks, or mini-notebooks, rose to $3 billion in the second quarter of the year, a leap of 264 percent over the second quarter of 2008, according to the new "Quarterly Notebook PC Shipment and Forecast Report" released Thursday. With those gains, Netbooks now enjoy an 11.7 percent share of the portable PC market.

(Credit: DisplaySearch

Though traditional notebooks still command an 89 percent slice of the market, their second quarter sales fell to $23.2 billion, a 14 percent decline from the second quarter of 2008.

Measuring 2009's second quarter against the prior year's quarter, sales fell in all subcategories of the portable PC market, including ultraportables and desktop replacements, the report noted. PCs in the 13-inch to 16-inch range managed to eke out a gain, but only measured against the first quarter of 2009.

The low prices of Netbooks appeal to consumers looking for a second PC and to those in emerging markets who don't need the rich and costly features of a large laptop. The market has also been buoyed by cable and telecommunications providers who have doled out Netbooks to customers who sign up for lengthy contracts.

Despite their growing market share, Netbooks have brought down revenue in the portable PC market due to their low average selling price (ASP).

(Credit: DisplaySearch

"Mini-notes have been a significant contributor to volume growth in the portable PC market as their very attractive price points make owning a secondary computer viable for many consumers. However, the lower ASPs of these devices are clearly having a negative impact on portable PC market revenue," John F. Jacobs, DisplaySearch's director of notebook market research, said in a statement. "For 2009, we expect continued ASP erosion across all portable computer categories, leading to the first Y/Y decline of portable computer revenue."

DisplaySearch expects the sales trend to continue next year, with Netbooks accounting for 21.5 percent of all portable PCs shipped but bringing in only 10.9 percent of the revenue for the market.

Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
Recent posts from Crave
T-Mobile says Sidekick data may yet return
Unanswered questions loom large in Sidekick fiasco
Uzi-shaped flash drive to hold rap album
iBend: The superthin iPhone video stand
Digital City No. 53: Netbook gaming, Dell's new Adamo, and the Steve Jobs jack-o-lantern
Dyson unveils blade-free fan
The long and the short--Ask the Editors
Samsung releases new Armani phone
Add a Comment (Log in or register) (33 Comments)
  • prev
  • 1
  • next
by ca5ter October 8, 2009 12:15 PM PDT
Who would want to neck with a book? Oh, you mean Netbooks, as in Network, wow that's cleaver. I wish I thought of that.

Wait a second, isn't their a device called a Notebook? Is that just for notes?

What about laptops, can they be used only on laps. Or are they the erotic computer? They give "lap" dances, wink.

Boy, I'm so confused. I guess I'll stay with my desktop
Reply to this comment
by Shoogle2 October 8, 2009 12:47 PM PDT
Yes, you do that.
Reply to this comment
by rapidsuccess October 8, 2009 1:11 PM PDT
Netbooks are pretty worthless. I read their satisfaction rate is less than 50%. Try doing anything meaningful on a 8 inch screen. My dell ultra portable with 12 inch screen is even hard to do much on but surf.
Reply to this comment
by JavaMan09 October 8, 2009 2:49 PM PDT
I thought about getting one, but whenever I went and looked at the demos netbooks set up in for instance Staples, the little things were always locked up. If on a rare occasion they weren't locked up, they were incredibly slow. Alas, I decided to get a Dell xps1640, and I love it. It may be larger, and maybe not so fashionable as a netbook, but who cares its way more powerful.
by Seaspray0 October 8, 2009 3:08 PM PDT
Get what suits you. That's the best thing to do.
by JoeF2 October 8, 2009 5:18 PM PDT
Netbooks are good for what they were intended for. Of course, if you want to run some processor- or graphics-intensive stuff on them, you will be dissapointed.
Netbooks are very good for web surfing and emailing. Very meaningful things as far as I am concerned.
by streamline35 October 9, 2009 7:11 AM PDT
This ^^ +1

People who are disappointed with netbooks obviously had their expectations too high. I got mine knowing full well what it can and can't do, and I couldn't be happier with it. I use it every day to take to class and take notes on - any other laptop would be too expensive or too heavy (what can I say - I'm a poor college student with too much stuff to carry already), and it's great for surfing the internet as well.

Also, I'm going to take it on my 3 week jaunt to Europe this winter - I can use it for email, skype, uploading all my photos as I go, and other general tasks. Again, if anyone can point me to a more powerful laptop that is this light (since I have to carry it around) and this cheap (I could survive financially if it got lost), please do, but I don't think it exists. A netbook fits my secondary computer needs perfectly (and my primary self built desktop lives at home for any sort of real computing)
by Gianni_Simplicio October 9, 2009 8:48 AM PDT
Here's the thing - even if their satisfaction rate s less than 50%, you still have a bunch of people willing to drop down $300 or so dollars to find that out. If you show they typical user a $1000+ laptop and then a $300 netbook, that user's going to really ask themselves if an extra $700 is work it for a larger screen and an optical drive. I still think netbooks are kinda silly, but the ultra-portability and price point go a long way in convincing me I need one.
by wnbear October 12, 2009 9:42 AM PDT
@rapidsuccess:
"Try doing anything meaningful on a 8 inch screen."
Yep, an 8" in screen might be a challenge...kind of why I didn't buy a MID. (FWIW - Netbooks are typically 9" & 10" screens)
In the future, try not to exaggerate specs just to validate your argument.

JoeF2 & streamline35 are dead on in their assessment.

Another thing,
"I read their satisfaction rate is less than 50%".
The problem here is you imply satisfaction rate is solely hardware related...had you considered what percentage of this satisfaction rate you cite is attributable to the Linux experience? Some people just aren't ready for Linux...and as a result, they're dissatisfied with the purchase - thereby inflating your figure. (I don't see that so much as a knock against a netbook, but more like a knock against Linux.)
by VoiceOfLogic October 8, 2009 1:30 PM PDT
Too bad jobs are being lost and real income, for those who are still employed or UNDER employed thanks to outsourcing -- otherwise they may want to purchase goods and services.
Reply to this comment
by megustansalchichas October 8, 2009 4:07 PM PDT
***? that's like saying fast food is hurting the 'real' restaurant business -if people didn't want crap, they wouldn't buy it
by JoeF2 October 8, 2009 5:16 PM PDT
And what does that have to do with netbooks?
Geez, what illogical stuff a self-proclaimed "voice of logic" can sprout...
by make_or_break October 9, 2009 10:40 PM PDT
Guessing you wanted that notebook you couldn't afford REAL bad, huh?

So...welcome to the REAL world. When did ANYONE say that your or anyone else's job is guaranteed?
by Mil Mascaras October 8, 2009 3:06 PM PDT
The Mfr's are just shooting themselves in the foot, with these toyish netbooks cannibalizing notebook sales. Remember, netbooks were only invented to squash the "One Laptop Per Child" OLPC project, whereby a consortium wanted to make laptops for school children in the 3rd world, as a non-profit business model, out of the goodness of mankind. Well the mainstream PC makers couldnt stomach that idea, so they invented the cheapie netbook. EVIL
Reply to this comment
by megustansalchichas October 8, 2009 4:09 PM PDT
yeah, that's why you see all those third graders using netbooks. grow up. the netbook is for facebooking and that's about it. if you need more, you should pay more, but consumers have realized they don't need more 'megahurts' just to place their online order at chipotle.
by JoeF2 October 8, 2009 5:21 PM PDT
The success of the netbooks shows that there is a market for them.
The OLPC project only shot themselves in the foot. They had the "Buy one, give one" initiative, which was successful. But the OLPC project wasn't able to actually deliver the laptops. Mr. Negroponte has had some great ideas, but he learned that you have to be able to deliver as well...
by MrRetardo October 9, 2009 4:20 AM PDT
Netbooks are useful as small, portable PCs. I carry one with me for my job rather than risk damaging my $2000 laptop. It came with XP Home (bleh), also had it running various distros of Linux and Mac OS X.

I wouldnt trust it to do my taxes on, or for heavy multi-media tasks, but as a 1.2 lb device with a 10" screen, it easily fits into my briefcase barely adding any weight. I can pull it out around the city, check the corporate email and so on.
Reply to this comment
by mjw149 October 9, 2009 4:36 AM PDT
This is just a natural and long overdue evolution of the market. In the 80s, the VW Golf got popular, you know? A small hatchback isn't usually the only car poeple have, and this is the same. Most people have 2-3 computers now, not counting phones, etc. The market expanded hugely in the late 90s and now this is the normal maturity.

It might not be the gas crisis that hit the auto industry, but it's about time that energy efficiency counted for something in the computing market.
Reply to this comment
by the_iceman October 9, 2009 8:42 AM PDT
I prefer a desktop personally and dont have a need for a portable PC
Reply to this comment
by gd1294 October 9, 2009 9:18 AM PDT
More power good small things do much and break me smash. Large fingers not my fault have a good weekend Bazaroo
Reply to this comment
by man4857 October 9, 2009 9:41 AM PDT
I love my EEE PC 1005HA. I am a student so it's a good thing I don't have to carry a 5 pound "ultraportable" notebook with the power adapter which easily becomes 7 pounds. I just carry my 3 pound eee pc in my backpack and it lasts the entire day and does everything I want. I couldn't even ask for anymore.
Reply to this comment
by Bertbaby October 9, 2009 10:08 AM PDT
Sorry but for the same price as a Netbook I bought a full sized Compaq laptop for $349. Other than the weight and maybe battery life, I said maybe, there is no reason to buy a smallish, underpowered netbook unless you like abuse. And as to wieght I say you need to manup at some point!
Reply to this comment
by streamline35 October 9, 2009 12:21 PM PDT
Ok, so I'm a college student with a desktop computer at home. I need a laptop for taking to class every day and taking notes. Which of those do you think I'm going to choose? A slightly faster laptop (with extra power I don't really need) that is heavier and has worse battery life, or a slower laptop that is extremely portable and lasts over 5 hours on battery (and that's just my older msi wind - newer asus netbooks can go ~8 hours)?

Obviously the question is rhetorical - there's no way in hell the compaq is a better choice for me. Same situation I could give you for my Europe trip this winter - I need very cheap laptop to take (has to be cheap so if something happened to it, it wouldn't hurt me financially). Should I take a faster, heavier laptop with poor battery, or a slower lighter one with much better battery? Of course I'm going to go with the netbook again.

I think the incorrect assumption that people who bash netbooks make is that they assume it's going to be a primary computer. I love my netbook, but I would never use it as a primary computer. Instead I spend $1000 of a very powerful (self built) desktop, and $400 on a netbook. Compared to a $1400 laptop, my desktop is far superior power-wise, and my netbook is far superior portability-wise (and obviously I don't need power on the go).
by wirelesscaller October 9, 2009 1:33 PM PDT
I agree with streamline35 the purpose of a netbook is not to become a primary computer but a supplemental one. For some who use a netbook it may not be the only thing they carry, students will most likely carry this and some of their school books while mothers will carry this, their purse, and baby bag as well. Most people with midsize to large laptops never carry them as a portable, in fact the only reason they'll carry them is if it's perceived to be mission critical, job or vacation requirement versus simply one where the benefit outweighs the inconvenience. I have a 15.6" notebook as well, but 9 out of 10 times I'll carry my netbook instead, very rarely do I need the power of a full size notebook and in many cases my friends have a powerfully enough desktop or laptop there at their home to use if such access is necessary.
by October 9, 2009 12:40 PM PDT
Netbooks certainly have their place. I use mine all the time. I grab it every morning and go out on the patio to drink my coffee and read the news and check e-mail. I also travel a lot. I put a 6-cell battery on mine so it weighs about 3lbs but I get almost 8 hrs on it. It fits nicely on the tray table on a plane and I never have to worry about a charge. I actually watch some recorded tv or read e-books. And it handles Word and Excel as long as the spreadsheets are simple. When I need process-intensive work I have a nice desttop for that.

I got mine with XP but put Windows 7 RC on it last spring and love it. Price was not the consideration for me. Size, weight, and battery life sold me. I will never carry a large heavy laptop again.
Reply to this comment
by JasCarver9 October 9, 2009 12:45 PM PDT
I have the Acer Aspire One 10.1" AOD250 Netbook and I could not be more happier with it. When the time comes where Windows XP is not getting anymore updates, I will go the Windows 7 route.
Reply to this comment
by symbolset October 9, 2009 9:25 PM PDT
The idea of lumping netbooks into a category and saying they're driving the average price down is like lumping motorcycles in with SUV's. Yes, there are some rebels in temperate climates who ditch their car in favor of a bike. Everybody else who has a bike rides it for fun, convenience and occasional economy, but doesn't consider it their primary ride.

Likewise in emerging economies a bike is the transportation for a person on his way up - a vehicle to transport him to higher earnings so he can afford a small car, or ultimately an SUV. It doesn't cut into the market for those thinks because he can't afford them yet and if he doesn't buy the bike he never will.

Netbooks work the same way in the emerging economies that are the growth market for PCs. People buy them who literally cannot buy the notebook or desktop, gain the skills they need to earn more money, and then buy the more expensive one.

It's silly to lump these different things together and say that the one is preventing sales of the other when it's plainly not true. What's driving down sales of expensive PCs is two things:

1. "It's the economy, stupid." People who are out of work don't buy new toys unless they're really foolish.

2. PCs we bought four years ago are good enough. They still do all the stuff we bought them for, and then some.

Every year newer and better software comes out that extends the utility of the PCs we already have, and if it's well designed does it faster because advancing software technologies improve the performance of existing software, they don't decrease it. A new PC is not going to email any faster, browse the Internet any faster, let us write and print a letter any faster than we can type because four years ago a computer already did that far faster than we could, unless we choose to use software that's progressively poorly designed. It's not going to play audio any better than the 6 channel system that came with our PC. It might play blu-ray, but I think we don't care. What we need is a 24" widescreen LCD or a projector maybe, a faster internet connection, a nicer camera, a network printer that does photo color and reads our SDHC, a NAS to share our stuff through the house, a WiFi router and WiFi usb connection to use our neighbor's Internet to upload the stuff we want to post anonymously, a RAM and HDD upgrade, and the occasional OS reinstall to keep performance up to snuff. We don't really need a new PC, with a new OS, and all the headaches that come from figuring out how to make the stuff we already have work with it.

So the problem with notebook sales is that we either already have one and don't need a new one yet, or we can't afford one yet. It's not netbooks.
Reply to this comment
by symbolset October 9, 2009 9:38 PM PDT
Yes, my post has typographical errors. I could write my posts in a word processor with spelling and grammar checking, but I don't care enough. If CNET cared enough to provide a "preview post" button like every other blog on the intertubes, I would probably bother to review the text before clicking the submit button.
by Australian_Photographer October 10, 2009 5:37 AM PDT
Shows how stupid many consumers are really. I don't say that based on these figures alone though, but also based on my personal experience with customers. Customers who come in asking if they can run Photoshop on a 9" eeePC or can Watch movies on an HP Mini Note.
Reply to this comment
by streamline35 October 10, 2009 6:50 PM PDT
You most certainly can watch movies on a netbook - I do it on trips. It just has to be a video file instead of a DVD (if they were asking about DVDs, then I'd agree - dumb question without an external DVD drive).

I'm also curious what kind of person would know enough to use photoshop, but be dumb enough to think it would run on a netbook...
by Tomofumi October 11, 2009 7:42 PM PDT
actually netbooks may helps the regular notebook market in a long term. I bought a netbook a few months ago which is even cheaper than my nokia smartphone, and find out that it is slow for gaming (~14fps for WOW lowest settings), so i'm now looking to buy a real notebook (with discrete graphics, of course)...
Reply to this comment
by streamline35 October 12, 2009 7:22 AM PDT
That's not really helping if you were just going to by a real notebook anyway...
by burnedrock129 October 12, 2009 10:08 AM PDT
Here is the issue I have with netbooks...

With all of the advancements we are making in multi-core cpu's i find it really frustrating to go back to a small form factor single-core UNDER 2Ghz processor.

I understand they are not made to be used for alot of performance but for gods sake throw in at least a dual core under 2Ghz and at least 2Gb of RAM.

This is not 2000 anymore, and lets face it, we all run multiple apps at once and want to be able to without a lag time similar to the dial up days.

As for the driveless attitude alot of these have...
I think thats ok but they should at least be able to develop a simple DVD-RW drive under $40 bucks, and definitely less than a $20 add on if in combo deals.

Lastly i think they should not be smaller than 10.1 and include 11.6 into the range.

I do not think we as the public need to go any more blind than we are already likely to because of the technology around us.

10-11 inches for a screen is a sufficient size to not only see clearly but also allow the room of a full size qwerty keyboard for those of us without alien fingertips.

PS> Putting AMD in a netbook is an awful idea. From experience AMD processors are never appropriate for laptop/notebook usage let alone a netbook. I have nothing against the company, as I use an AMD processor for the Desktop I built, however they have never come out with a mobile cpu I would be willing to use all the time for laptop use.
Reply to this comment
(33 Comments)
  • prev
  • 1
  • next
advertisement
advertisement

About Crave

The name says it all. Crave is our blog about gorgeous gadgets and other crushworthy stuff. If you would like to contact Crave with a tip or comment, please write to: crave@cnet.com

Add this feed to your online news reader

Crave topics

With outage, Sidekick service loses its footing

roundup A prolonged outage for users of T-Mobile's Sidekick device gets even worse as Microsoft's Danger unit says that their lost Sidekick data may be gone forever.

Yahoo ponders the meaning of search

The Internet company appeared to wave a white flag in the search market when it agreed to an outsourcing deal with Microsoft, but is search more than just indexing and ranking?