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For Computer Shoppers, Small Is Beautiful

But consumers should do homework before buying a netbook

By Mark Huffman
ConsumerAffairs.com

September 1, 2009
Judging from the latest sales figures, consumers want small, portable computers rather than large, bulky desktops. Laptops led computer sales in the second quarter of 2009, powered by the sale of the smallest of computers - netbooks.

The technology research firm DisplaySearch reports total notebook PC sales surged past the 38 million mark in the second quarter. But when you break down the numbers between notebooks and the smaller netbooks, its clear what was driving the increase. Sales of netbooks were up 40 percent, compared to a 22 percent gain for the larger notebooks.

"Mini-note penetration in Latin America and Greater China is higher than notebook PC penetration, the report said. "The low prices of mini-note PCs make these products more affordable for these emerging markets, and these regions have many first-time PC buyers, who are less likely to require all the bells and whistles available on a larger mainstream notebook PC."

In North America, telecom providers are aggressively marketing netbooks with a two-year data plan contract, while some cable providers are offering heavily discounted netbooks as an incentive to sign a contract for cable TV, Internet and phone service.

Netbooks have been a significant contributor to the growth in the portable PC market because they're relatively inexpensive. With their lower prices, many consumers are buying a netbook to use as a second computer.

"Mini-note PC screen sizes have increased steadily, from 7.0" to 8.9" and then to 10.2". Some panel makers and brands are promoting 11.6" mini-note displays, leading to an overlap with ultraportable notebooks," said John Jacobs, Director of Notebook Market Analysis fpr DisplaySearch.

Despite the low price tags, consumers should carefully research netbooks and consider how they plan to use it before making a purchase. Netbooks usually come equipped with limited amounts of memory and lack a CD or DVD drive. They are truly designed for Web surfing, and not much else. In fact, chip maker Intel says you really shouldn't try to replace a laptop with a netbook.

"A netbook doesn't have the processing power and functionality you'd need to run many of the applications your current laptop supports, even if it's a few years old," the company says on its Web site. "The good news is that today's lap[tops offer more bang for the buck than ever before."

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