Netbook sales crash: the downside to the tablet upside

Jenna Pitcher
15 June 2011, 4:39 PM


There’s been a 40% crash in netbook sales and it's starting to become pretty clear why, as tablets start eating into the netbook's previously healthy market share.


Let’s face it, many of us thought tablets would be popular, but few expected them to start killing netbooks and even affecting sales of notebooks and PCs. However, their impact has been highlighted by Bill Koefoed, Microsoft’s general manager of investor relations.

When explaining at a recent Microsoft results announcement why the consumer PC market had declined 8 per cent in the most recent quarter, Koefoed said it was partly due to a “40 percent decline in netbooks.”

He didn’t explain why netbooks had suffered specifically, but analysts Gartner Inc did, when they downgraded their forecast for PC sales in 2012 down to 440.6 million units. Gartner put the blame squarely at the feet of tablets.
 

Netbook, we hardly knew you...

“We expect growing consumer enthusiasm for mobile PC alternatives, such as the iPad and other media tablets, to dramatically slow home mobile PC sales, especially in mature markets,” said George Shiffler, research director at Gartner.

“We once thought that mobile PC growth would continue to be sustained by consumers buying second and third mobile PCs as personal devices. However, we now believe that consumers are not only likely to forgo additional mobile PC buys but are also likely to extend the lifetimes of the mobile PCs they retain as they adopt media tablets and other mobile PC alternatives as their primary mobile device.”


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rogue316 (Advanced member):

It'll switch back. Tablets are restricted in what they can do as far as net surfing is concerned. There are plenty of things you cant do on a tablet, but you can do on a netbook. People will learn for themselves and then more than likely come crawling back to get better net service.

15 June 2011, 6:07 PM (1 year ago)report abuse Send to a friend reply

Chris.Lampard (User):

They will have a use people just haven't found it yet myself one of these wit ha SSD is the perfect companion in any vehicle stash it under the seat if you have a Android handset or Apple turn on your Wirelees Access Point and bam internet where ever you have 3G, or hook it up to a 7" screen in dash and get a wireless keyboard and mouse easy done.

Google it on the way, book on the way, so many options and uses.

Chris.

15 June 2011, 6:16 PM (1 year ago)report abuse Send to a friend reply

J876 (User):

I have a netbook and I think they are fantastic little machines for travel and battery life. It would be good if there was a "sandy bridge" version of the Atom CPU with inbuilt graphics and video encoding. Also if they had netbooks with the option to factory install a better version of windows than the watered down starter edition that would be good too.

I have Windows 7 Ultimate on my netbook and it runs fine and I can connect to my work network remotely.

Also, tablets don't have keyboards which are a pain for word processing and e-mails.


15 June 2011, 11:30 PM (1 year ago)report abuse Send to a friend reply

ss-rotel (User):

is it JUST tablet's that are effecting Netbook sales thou? or is it that now that Sandy bridge laptops are now available, retailers and suppliers are trying to off load their stockpile of older laptops at stupid prices.

Why by a $400 netbook, when for an extra $100 you can pick up a fully fledge laptop that's twice as fast, with twice as many features.

16 June 2011, 10:05 AM (1 year ago)report abuse Send to a friend reply

CCCMikey (New user):

A Netbook with XP and 1GB RAM > a NetBook with Windows 7 Starter and 1GB RAM. But you can't buy them any more.

17 June 2011, 4:48 PM (1 year ago)report abuse Send to a friend reply

ss-rotel (User):

what do you mean by that? XP will run faster on a 1gb machine, of corse, but y not just ADD xtra memory? it's cheap enough

17 June 2011, 6:49 PM (1 year ago)report abuse Send to a friend reply

CCCMikey (New user):

Quoting ss-rotel:
but y not just ADD xtra memory?

Because with many netbooks that is simply not possible, by design or policy. Microsoft mandated it some years ago although I don't know if that has been lifted yet. http://www.techspot.com/news/31996-microsoft-retains-1gb-ram-limit-on-netbooks.html for example.

Microsoft effectively killed the market.


17 June 2011, 7:00 PM (1 year ago)report abuse Send to a friend reply

ss-rotel (User):

sooo.... you're saying that it's impossible for you replace the igb stick with a 2gb stick that you can buy $29.

i know it's do able. i've done it myself

19 June 2011, 2:28 PM (1 year ago)report abuse Send to a friend reply

J876 (User):

CCCMikey I think you need to do some more research on your computer hardware. The NM10 Chipset + Intel Atom N450 CPU, like the one in my Dell Inspiron Mini 1012 Netbook, supports up to 2 GB of 800 MHZ DDR2 SDRAM which I have just recently put in to give it a bit of a boost.

A quote from the Intel Atom N400 and N500 series datasheet section 8.4:

''The processor supports a maximum of 2GB of DRAM. No DRAM will be accessable above 2GB.'
Page 12 Datasheet Volume 2.

Link: http://download.intel.com/design/processor/datashts/322847.pdf

19 June 2011, 5:34 PM (1 year ago)report abuse Send to a friend reply

J876 (User):

CCCMikey I think you need to do some more research on your computer hardware. The NM10 Chipset + Intel Atom N450 CPU, like the one in my Dell Inspiron Mini 1012 Netbook, supports up to 2 GB of 800 MHZ DDR2 SDRAM which I have just recently put in to give it a bit of a boost.

A quote from the Intel Atom N400 and N500 series datasheet section 8.4:

'The processor supports a maximum of 2GB of DRAM. No DRAM will be accessable above 2GB.'
Page 12 Datasheet Volume 2.

Link: http://download.intel.com/design/processor/datashts/322847.pdf

19 June 2011, 5:40 PM (1 year ago)report abuse Send to a friend reply

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