Despite the fact that the Apple iPad and the netbooks essentially target different sets of customers, it is being largely believed that the plunging netbook sales during the first quarter – the three months leading up to the iPad’s launch – are an indication that the days of netbooks are probably numbered.
Already, in the midst of all the hype surrounding the iPad launch, DigiTimes revealed in a rather quiet note that both HP and Dell have decided to pull back on their investment in 10-inch netbooks, and planned to focus on AMD-based 11-inch devices that would yield higher profits.
In fact, the small margins, standard specs and ‘brutal’ pricing of the netbooks has seen computer manufacturers refraining from making big investments in the netbooks’ arena, and turning their attention to bigger-screen devices, larger-resolution displays, Nvidia graphics, and even non-Atom processors.
Moreover, Apple CEO Steve Jobs’ obvious disparagement of the popular, low-cost mini-notebooks – saying that “Netbooks aren't better than anything,” at the January 27 unveiling of the iPad – has only made matters worse.
According to market researcher IDC, poor first-quarter sales of the netbooks have had PC makers worrying that Jobs’ disdain of the netbooks has carried over to the consumers.
With apprehensions galore about the fate of the netbooks, it is likely that the iPad’s launch may signal the beginning of the end for the 10-inch netbooks!
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