Net gain for netbooks
Ultra-mobile and comparatively low-priced, Netbooks have gained immense popularity and are now clawing out some notebook pie
CRN Network
Once perceived as a fancy gadget for the ultra-mobile user, Netbook is fast becoming the second notebook for professionals on the move. IDC has forecasted a growth rate of 127 percent, over 2008, for global netbook shipments, clocking 26.4 million units this year. The research firm predicts that around 3,00,000 units will be shipped to India this year, and the number will double by 2010.
Growth factors
Powered by Intel’s new line of low-cost and low-power Atom processors, the netbook broke on to the scene only in the second half of 2008 to target consumers looking for affordable Internet-led computing—carving out a price bracket of sub Rs 23,000.
A convergence of factors has been driving the growth so far; vendors becoming aggressive, the fall in prices, and the economic slowdown. As of September 2009, the entry level price point of netbooks sporting 10-inch screens has fallen to Rs 16,000 and the high end netbook shipping with Windows XP, is priced as high as Rs 24,000. The economic slowdown has forced many buyers to slash their budgets and buy netbooks instead of notebooks.
The demand for netbooks is from a cross section of buyers. Students are opting for netbooks largely due to the portability and because it offers a longer backup time. Meanwhile, corporate and SME customers also prefer to buy netbooks for their mobile professionals rather than notebooks.
| Quick Five |
|
» Both channels and vendors expect the large corporate buyins to kickoff during next 12 months
» Companies up for a refresh are contemplating replacing existing notebooks with netbooks
» Windows 7 launch and development of netbook-specific solutions can ramp up the popularity
|
Channel opportunities
While majority of netbook sales have been through retail chains, both channels and vendors expect large corporate buyins to kickoff during next 12 months. Companies who are in for a technology refresh are contemplating on replacing existing notebooks with netbooks.
Many post graduate educational institutions, which have been buying traditional notebooks for their students, have started opting for netbooks and the trend is likely to see increased momentum in the days ahead.
Retailers are seeing additional opportunities as netbook users also come back for other accessories such as USB drives, external ODDs or even docking stations.
Future
Microsoft’s imminent Windows 7 launch is expected to further fuel interest among netbook buyers. Coinciding with the launch, industry vendors expect ISVs to ship solutions in CRM, ERP, productivity tools specifically targeted at netbook platforms. This could see wider acceptance of netbooks among enterprises.
With projected spikes in volumes, the prices are expected to crash further. In fact, there are vendors who feel that an entry level price of Rs 12,000 is possible in the near future for netbooks.
Also forecasted are more cohesive partnerships between telecom companies and PC manufacturers leading to attractive bundles, further fuelling demand.
With the prices of netbooks and high-end multimedia or smart phones being at par, customers could change netbooks frequently, just like they do with mobile phones. But with the proliferation of netbooks, there will be added competition for IT channels from both mobile phone and consumer durable channels. |