"We made a mistake with netbooks last year" -- CES

Angus Kidman08 January 2009, 1:18 PM

The convenors of the giant Consumer Electronics expo in Las Vegas say 2009 is -- without doubt -- the year of the netbook.


With 10 million units sold in 2008 and almost double that number expected this year, netbooks look like one of the few bright spots for consumer tech in 2009.

In the list of the fastest-growing technologies for 2008 based on wholesale US sales released by the Consumer Electronics Association ahead of this week's CES in Las Vegas, netbooks don't actually figure. That's because they weren't tracked as a separate category, as by CEA's rough reckoning, they probably accounted for less than 1% of the worldwide laptop market and had made very little impact stateside.

In 2009, no-one's making the same mistake. Netbooks have definitely arrived, with sales of 10 million ultra-portable devices around the world in 2008. For 2009, CEA estimates that number will jump to 18 million, accounting for around 11% of the total notebook market. That figure is expected to continue to grow, rising to 14% in 2012. In 2009, US sales are expected to grow by 80%, making them the fourth fastest-growing retail category (after OLED displays, e-readers and flash camcorders).

Surprisingly, netbook growth doesn't necessarily mean a massive use in the increase of solid-state storage. Storage market researcher Tom Coughlin predicts that solid-state drives will only be used in 2.5% of mobile PCs by 2013, which means most of those netbooks will still rely on conventional hard drive technology.

Higher-spec netbooks are even pumping life into the tablet PC market, which has repeatedly failed to translate hype into actual sales. "We never really saw tablets take off, but netbooks are moving into that space," said CEA economist Shaun DuBravac. "The netbook has become very much an identifiable segment."

There's a downside to that, of course: netbooks sell for less and make it hard for manufacturers to turn a dollar. "Lower priced netbooks will pull the average price of PCs down, resulting in lower overall revenue growth," said Tim Herbert, senior director for CEA Market Research.

Conventional laptop makers probably don't need to panic, since standard machines continue to comprise the lion's share of the notebook market, and have totally outstripped desktop sales. In 2009, the CEA is projecting that 63% of PC sales will be portable, with around 147 million mobile computing devices of some description shipping around the globe.


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CBR1100XX (Cornerstone member):

"With 10 million units sold in 2008 and almost double that number expected this year, netbooks look like one of the few bright spots for consumer tech in 2009."

Oh ! That's why they keep pumping them out :P

08 January 2009, 1:23 PM (1 year ago)report abuse Send to a friend reply

djsflynn (APC staff):

It's also worth noting that on Amazon's Top 10 Laptops list, nine out of ten are netbooks. The only conventional notebook sits in 6th place, and it's Apple's entry-level unibody MacBook.

In fact, if you broaden your scope to the Top 15 you still get nothing but netbooks, apart from – you guessed it! – another two Apple notebooks (the entry-level MacBook Pro at #9 and the premium MacBook at #15)

By memory, about a year ago the Eee PC took a few of the top slots in its various incarnations and the rest of the ladder was taken up by the three favours of MacBook and the odd HP. This is a VERY good reflection of where the market is at today.

It also begs the question: are those netbooks being bought as NEW computers -- an ultra-mobile accessory to a desktop or a 17in laptop, or a notebook for the kids whod otherwise have to share mum & dad's machine -- or are they being bought instead of the conventional notebooks which they've dislodged from the Top 10 List?

08 January 2009, 1:29 PM (1 year ago)report abuse Send to a friend reply

Raindog (Senior Forumologist):

Quoting djsflynn:
It's also worth noting that on Amazon's Top 10 Laptops list, nine out of ten are netbooks. The only conventional notebook sits in 6th place, and it's Apple's entry-level unibody MacBook.

In fact, if you broaden your scope to the Top 15 you still get nothing but netbooks, apart from – you guessed it! – another two Apple notebooks (the entry-level MacBook Pro at #9 and the premium MacBook at #15)

The apparent sales success of the Apple models is more a reflection of a lesser number of options for those wishing to go MAC. A combined sales total of DELL, HP, Toshiba, ASUS and Lenovo compared to combined sales of the Apple models would present a very different outcome.

As for the netbooks it will be interesting to see how long before the diminishing of novelty value and an the inevitable saturation of the potential target market see them as last years must have new thing.



08 January 2009, 2:27 PM (1 year ago)report abuse Send to a friend reply

plutonium210 (Advanced member):

Yeah ! Pretty soon these things will let you make and receive phone calls ............. Oh ! hang on, my iPhone does that already ;)

08 January 2009, 1:39 PM (1 year ago)report abuse Send to a friend reply

Carmar (User):

A netbook is definitely on my shopping list - perhaps it was seen merely as a little laptop, I see it more as an MP3 player/bookreader/notebook. It can even be used as a quasi mobile phone with Skype. Perhaps people want just one small gadget instead of half a dozen.

08 January 2009, 5:32 PM (1 year ago)report abuse Send to a friend reply

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