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Netbook Revenue Sag as the iPad Arrives The revenue expansion in the mini-laptops has fallen sharply as purchasers eye much more capable portable personal computers
By
Cliff Edwards

Apple's (AAPL) iPad is helping neat the personal computer industry's netbook fever. Apple Chief Executive Steve Employment has created no solution of his disdain for the common, cheap mini-notebooks. "Netbooks aren't better than anything. They're just cheap laptops," Work said at the Jan. 27 launch in the iPad tablet personal computer in San Francisco.

PC makers are starting to worry that consumers agree. The sales development of netbooks, priced from $200 to $500 and resembling shrunk-down laptops, slowed markedly in the first quarter, according to market researcher IDC.

Netbook shipments to retailers from January through March are expected to grow 33.6% compared with a year ago,Office Professional 2007 Key, to 4.8 million units, IDC says. That's significantly slower growth than in the first quarter of 2009, when netbook sales leapt 872%, to 3.6 million units. "Everyone tried to make these mini-notebooks out to be a different category, or different type of device," says IDC analyst Richard Shim. "In fact, people think of them as just another type of PC."

Falling sales aren't the only problem dogging netbooks. There's evidence that demand for netbook components is declining. The Web site DigiTimes reported on Mar. 30 that makers from the liquid-crystal-display panels used in netbooks are cutting production because of declining orders. PC makers including Hewlett-Packard (HPQ), Dell (DELL), and Acer declined to comment on whether inventories of unsold netbooks are on the rise.
Seeking the Next Big Thing
Susie Ramirez, a spokeswoman for Intel, which makes the Atom chip used in most netbooks, declined to say whether PC makers are ordering fewer of the chips. "Things change quarter to quarter,Windows 7 Home Premium Product Key, but in the end we're looking at hundreds of millions of netbooks that will be sold over time,Windows 7 Activation Key," she says.

Some PC makers are starting to look past the category and divine what will next capture consumers' attention in the transportable computer market. Michael Abary, senior vice-president of Sony's (SNE) Information Products Technology Div., which makes Vaio-branded desktops,Office Professional 2007, laptops, and netbooks, says the mini-laptops are "losing [their] novelty. Everyone is trying to figure out what's next, now that we realize [sales are] not going to continue to grow at an astronomical rate."

Sales of netbooks, which became well-known among American consumers in 2008,Windows 7 Ultimate Key, exploded as recession-battered shoppers opted for your cheap but less able laptops. When many people got them home, they were disappointed by flimsy keyboards, unfamiliar operating systems, and a lack of programs that could be run on the machines.

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