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Netbooks: A Catalyst for Industry Change?
Don Ryan
July 2nd, 2009
Will the Emergence of a New Category Fulfill the Promise of True Personal Computing?
Bottom Line Summary
Innovation can often have unintended consequences. Netbooks began as an attempt by some emerging PC vendors to generate additional sales through persuading consumers to purchase lower-end PCs as a substitute or supplement to a desktop or laptop. Now Netbooks appear to be emerging as a new category of mobile computing and communications.
- Business models are challenged as Netbooks change consumer purchasing dynamics, usage patterns and industry pricing/margin models.
- Despite rising demand, consumers often face little choice when buying Netbooks in traditional retail channels, forcing consumers to go online.
- Improved communications and positioning of the category is key to continuing Netbook growth; over 50% of consumers are still not aware of Netbooks as a unique concept.
- Lines are blurred between Netbooks and Notebooks. Even retailers appear unaware of unique selling propositions.
- Limitations in processing power and application availability will force resourceful consumers to utilize the web for storage and application usage.
- Netbook usage models potentially lend themselves to new distribution channels, e.g., wireless service providers. The research shows that roughly 10% of consumers would buy a Netbook and connectivity service plan from a service provider.
- While the industry gets that consumers will substitute notebooks and desktops with Netbooks, research shows Netbooks have real potential to generate incremental sales beyond the main home PC by offering a unique supplementary mobile device.
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