Growth in netbook sales slows in anticipation of Apple's iPad

Posted:
in Current Mac Hardware edited January 2014
As the launch of Apple's iPad looms, a new report alleges that HP and Dell have cut back production of low-cost, low-power netbooks after the market saw relatively slow growth in the first quarter of 2010.



This week, Taiwanese industry publication DigiTimes reported that major netbook makers have had second thoughts about the booming low-cost market, which offers minimal profits to hardware vendors.



"Hewlett-Packard (HP) and Dell have both significantly reduced their investments in the 10-inch netbook segment, with HP reportedly even considering quitting the 10-inch netbook market and turning its focus to AMD-based 11.6-inch notebooks because profits from Intel Pine Trail-based netbooks have been lower than expected, according to sources from notebook makers," the report said.



It added that a majority of second-tier netbook vendors have quit the market after the top brands began cutting their prices in the second half of 2009. Acer, Asustek, and Samsung, however, remain active in the market.



In addition, according BusinessWeek, market research firm IDC has revealed new sales data that showed netbook shipments to retailers from January through March 2010 grew 33.6 year-over-year, to 4.8 million units. While that is still an increase, it pales in comparison to the first quarter of 2009, when netbook sales jumped 872 percent to 3.6 million units.



The report noted that the iPad, set to launch on Saturday, may have played a part in slower sales growth for netbooks at the start of 2010. Apple has positioned its device as a counter to both the netbook market and dedicated e-readers like the Amazon Kindle.



When the iPad was first unveiled in January, Apple co-founder Steve Jobs directly compared it to existing netbooks on the market, noting that he felt the new product was lighter and more useful than low-cost netbooks, which he said are just "cheap laptops." With a 9.7-inch display and weighing just 1.5 pounds, the keyboard-less, touchscreen iPad is a much different form factor from the traditional laptop.



One recent survey found that most who plan to purchase an iPad intend to use it for work on the go. The poll of 770 smartphone owners found that more than half said the iPad, or a similar tablet, would serve as a netbook replacement.



Another study found that most consumers who plan to buy an iPad will rely on it for a variety of functions, suggesting it will serve as more of a netbook than an e-reader. The ChangeWave Survey found that 68 percent of respondents said they would surf the Internet with the iPad, 44 percent would check e-mail, and 37 percent are interested in reading e-books.



In addition, analysts on Wall Street believe that the introduction of the iPad will have the greatest impact on netbook purchases, thanks mostly to its starting price of $499.
«1345

Comments

  • Reply 1 of 98
    quadra 610quadra 610 Posts: 6,734member
    It's already happening. The junkbook market is already taking casualties. This was predicted months ago.
  • Reply 2 of 98
    chronsterchronster Posts: 1,894member
    Quote:
    Originally Posted by Quadra 610 View Post


    It's already happening. The junkbook market I'd already taking casualties. This was predicted months ago.



    Soon anyone who ever tried to bring a product of any kind to anyone will vanish, and Apple will be the only company left.



    If God needed a computer, he would use an iPad!



    ALL HAIL APPLE!
  • Reply 3 of 98
    cvaldes1831cvaldes1831 Posts: 1,832member
    On the bright side, this should improve their margins.



  • Reply 4 of 98
    I mean, this was foreseen and all, but so soon? Really quite amazing.



    I wonder what these companies will turn to to salvage their losses? Moreover, will their prices remain competitive, so long as these hardware manufacturers are dishing out wads of cash to Microsoft for Windows-based devices?



    It seems the only contenders in this contest are Apple and Google, who are inexpensive.
  • Reply 5 of 98
    psych_guypsych_guy Posts: 451member
    But, but HP has the Slate. Surely that will be "iPad Killer", no?
  • Reply 6 of 98
    matt_smatt_s Posts: 299member
    Quote:
    Originally Posted by Quadra 610 View Post


    It's already happening. The junkbook market is already taking casualties. This was predicted months ago.



    I agree with you but I just don't understand these manufacturers. Why do these instruments have to be so crappy? Nobody's forcing them to make junk, yet they do.



    I still wish Apple would launch a smaller form factor MacBook with a 9" or 10" LCD. I want something that runs OS X and some typical work productivity apps but with a smaller footprint, and a modicum of IO (not wimpy MBA IO). Something that would also do Skype video telecons.



    I think they'll sell a lot of the new pads, and it'll be great for my stock. But selfishly, I continue to dream that one day, they'll build a high quality miniature OS X laptop.



    Oh well. You can't have everything, where the hell would you put it?
  • Reply 7 of 98
    chronsterchronster Posts: 1,894member
    Quote:
    Originally Posted by Psych_guy View Post


    But, but HP has the Slate. Surely that will be "iPad Killer", no?



    This is an article about netbooks, not upcoming tablets. We have absolutely no idea how well the slate will do.
  • Reply 8 of 98
    chronsterchronster Posts: 1,894member
    Quote:
    Originally Posted by matt_s View Post


    I agree with you but I just don't understand these manufacturers. Why do these instruments have to be so crappy? Nobody's forcing them to make junk, yet they do.



    I still wish Apple would launch a smaller form factor MacBook with a 9" or 10" LCD. I want something that runs OS X and some typical work productivity apps but with a smaller footprint, and a modicum of IO (not wimpy MBA IO). Something that would also do Skype video telecons.



    I think they'll sell a lot of the new pads, and it'll be great for my stock. But selfishly, I continue to dream that one day, they'll build a high quality miniature OS X laptop.



    Oh well. You can't have everything, where the hell would you put it?



    Well what's interesting is the fact that the ipad and current netbooks are two different tools capable of doing very different things like twos separate tools, so the ipad having an impact on the netbook market just means the ipad is what a lot of people buying netbooks actually want. One is capable of doing everything a computer does while the other streamlines basic functionality of a computer.



    It might mean that a vast majority of people buying netbooks are the same people who will benefit most from an ipad. People who don't want a whole computer, but just a little something-something to get them to basic tasks.



    For instance, I'll buy a netbook if I need something very portable that I can work on (load up Visual Studio or Eclipse and get some work done) but my mom would love an ipad to converse through email and IM with her friends, and browse the web. The netbook is definitely better for me than her, and I think the majority of people buying netbooks are people like her.
  • Reply 9 of 98
    zindakozindako Posts: 468member
    Netbooks are utter junk, I never bought one, and never will, I've been waiting for the day Apple would make a product that rivals these so called netbooks, and that day is here.



    Just like when Blackberry's were the thing to have for smartphones, I found them to be extremely awkward and clunky, so I never got a smartphone until Apple made one. History is just repeating itself here folks, netbooks wont vanish, but they'll be relegated to a 2nd class citizen in comparison to Apple's iPad.
  • Reply 10 of 98
    Quote:
    Originally Posted by chronster View Post


    Soon anyone who ever tried to bring a product of any kind to anyone will vanish, and Apple will be the only company left.



    If God needed a computer, he would use an iPad!



    ALL HAIL APPLE!



    Wo wo wo... let's take it easy folks. I don't think God will need one, but we've all seen iPads in use on the Starship Enterprise for years now, so it's not a big deal.



    The question now is what is the first version of the iPad that will be ordered for the space ships and when? Any NASA insiders?



    One thing is certain, the human iPad will be much better than the Klingon Slates.



    Time will tell.
  • Reply 11 of 98
    solipsismsolipsism Posts: 25,726member
    Nothing unexpected here.



    I do hope more vendors realize that going with a desktop OS and chic 16:9 display ratio and a is suboptimal for a 10" device unless you only want it to play videos.
  • Reply 12 of 98
    spotonspoton Posts: 645member
    Quote:

    Apple has positioned its device as a counter to both the netbook market and dedicated e-readers like the Amazon Kindle.



    Except that's it's not really.



    A netbook costs anywhere from $300 and up. A Kindle costs $260 and up. A Windows 7 laptop anywhere from $500 and up.





    A iPad costs $500 and up, it also needs another computer. Which adds a additional $500+ to it's cost.



    So essentially a $1000 to $1300 iPad isn't in the range of other $260-$1000 devices at all.



    If the iPad was standalone, then we are talking some competition, $500 Win7 laptops vs $500 iPads.





    From Apple:



    Quote:

    Mac system requirements



    * Mac computer with USB 2.0 port

    * Mac OS X v10.5.8 or later

    * iTunes 9.0 or later (free download from www.itunes.com/download)

    * iTunes Store account

    * Internet access



    Windows system requirements



    * PC with USB 2.0 port

    * Windows 7; Windows Vista; or Windows XP Home or Professional with Service Pack 3 or later

    * iTunes 9.0 or later (free download from www.itunes.com/download)

    * iTunes Store account

    * Internet access




  • Reply 13 of 98
    jupiteronejupiterone Posts: 1,564member
    Quote:
    Originally Posted by SpotOn View Post


    .....but it needs another computer.



    You keep posting this over and over, as if it is some kind of problem. Who do you think the iPad is being marketed to?
  • Reply 14 of 98
    allblueallblue Posts: 393member
    Quote:
    Originally Posted by chronster View Post


    Well what's interesting is the fact that the ipad and current netbooks are two different tools capable of doing very different things like twos separate tools, so the ipad having an impact on the netbook market just means the ipad is what a lot of people buying netbooks actually want. One is capable of doing everything a computer does while the other streamlines basic functionality of a computer.



    It might mean that a vast majority of people buying netbooks are the same people who will benefit most from an ipad. People who don't want a whole computer, but just a little something-something to get them to basic tasks.



    For instance, I'll buy a netbook if I need something very portable that I can work on (load up Visual Studio or Eclipse and get some work done) but my mom would love an ipad to converse through email and IM with her friends, and browse the web. The netbook is definitely better for me than her, and I think the majority of people buying netbooks are people like her.



    This is a good point. The iPad is a new class of device in its own right. If you think about round the home, how this device will do what's required so much better than a net/note book. I reckon kids are going to go nuts over these - I can definitely foresee a situation where everyone in a household has one each.
  • Reply 15 of 98
    Apple is doomed!
  • Reply 16 of 98
    Digitimes is as unbiased as Fox News .
  • Reply 17 of 98
    Quote:
    Originally Posted by Psych_guy View Post


    But, but HP has the Slate. Surely that will be "iPad Killer", no?



    Does it exist or is it vaporware?



    I saw some nice pictures and some lovely descriptions /s.
  • Reply 18 of 98
    spotonspoton Posts: 645member
    Quote:
    Originally Posted by JupiterOne View Post


    You keep posting this over and over, as if it is some kind of problem. Who do you think the iPad is being marketed to?



    Affluent technophobes and children.



    One gets a free Winnie the Poo book on every iPad.
  • Reply 19 of 98
    undo redoundo redo Posts: 164member
    "Growth is slowing" means slowing but still growing. Netbooks are still wildly popular for good reason. They're cheap, lightweight computers that will do nearly anything. I think it's wise HP and Dell are looking hard at their 10" models since 11" makes more sense and allows for a full-size keyboard.



    While the iPad is a cool device, I think its "growth will slow" when people realize what a pain it is, having no keyboard and having to hold it constantly at a proper viewing angle. In a few weeks, iPad Wash® will be introduced, to clean the scum off the screen.
  • Reply 20 of 98
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by JupiterOne View Post


    You keep posting this over and over, as if it is some kind of problem. Who do you think the iPad is being marketed to?



    His logic is pretty whacked. The iPad is an accessory computing device as is a netbook. I know of no one that has used a netbook and gone "This is perfect, now I can get rid of my Mac/desktop/notebook". There are likely some that have, just as there are some that saw Gigi in the theater and liked it but nearly all would have bought netbook as an accessory or temporary computing device.



    He also makes some odd price comparison as if other devices being cheaper mean that they'll be less successful. He probably said the exact same thing about the iPhone yet Apple became the most profitable handset vendor in the world in just two years on the market with their super expensive phone.
Sign In or Register to comment.