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Dell, HP may be turning backs on 10-inch netbooks

updated 10:00 am EDT, Thu April 1, 2010

HP may quit 10in netbooks altogether

The top two US netbook builders are scaling back or even exiting 10-inch netbooks in the near future, tips from within the industry. Either is believed to have at least cut their demand in favor of larger, 11.6-inch models, while HP may be quitting 10-inch netbooks entirely in favor of larger AMD-based models. Many of the smaller companies have already backed out after having difficulty competing in price and scale.

The larger companies would themselves be getting out of 10-inch netbooks for price reasons, DigiTimes said. Profits from netbooks based on Intel's Pine Trail platform have purportedly been so low as to be unfeasible. Many of these systems cost even less than before and are often $300. Larger models would help preserve profits by using more expensive CULV or regular notebook processors in addition to other more expensive components, such as the larger LCD and hard drives.

The netbook market is expected to slow down this year and could have a ripple effect on smartbooks like the Lenovo Skylight, which follow the same concept as a netbook but with a more efficient ARM chip and a frequently web-oriented platform.

A withdrawal of the sort would play into the hands of Apple, as it should be one of the largest consumers of LCDs near the 10-inch mark with the iPad and has already positioned its tablet as an upscale alternative to a netbook. It has argued that netbooks are "just cheaper" rather than better, and the frequently cut-rate pricing is estimated to have dragged the industry down in 2009 by lowering the total revenue even as it artificially boosted notebook shipments.



By Electronista Staff
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  1. MisterMe

    Fresh-Faced Recruit

    Joined: May 2007

    +5

    In their race to the botttom ...

    ... it appears that they have crossed the finish line. Congratulations.

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    0

    This is surely indicating the death of the netbook

    It's not the iPad that's going to kill off the netbook, it will be the companies that are continually losing profit that will kill the netbook. Only companies in China have the capability of producing netbooks and surviving. U.S. companies really can't afford to be selling $300 netbooks. Michael Dell had indicated that last year. It makes no sense to sell such cheap computing devices in the U.S. Netbooks are third-world computers.

    Apple is sitting in a perfect position now. Windows notebook PC prices are going to head back up and they'll lose whatever huge cost advantage they had. Man, are those cheapsters buying netbooks going to be pissed.

    I hope Apple has purchased all the 9.7 inch displays being made for this year. That'll put a crimp in the copycats plans.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +2

    re: death of the netbook

    It is not the death of the netbook. As you even say, Chinese companies can produce these and survive. Thus they will not die, you just won't get a Dell or HP branded one (like you can't get an Apple branded one).

    It makes no sense to sell such cheap computing devices in the U.S. Netbooks are third-world computers.

    Just because makers aren't making the kind of money they want does not make them third-world computers. Apparently the demand is such that a lot of people in the US want netbooks, and they aren't going to say "Oh, Dell isn't selling them. Well, instead of spending $300 on a netbook, I think I'll spend $1000 on this Inspiron instead".

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