Study shows netbooks, Atom dropping off

Interest in netbooks has slowed dramatically in the first few months of 2010, according to new data from IDC. The number of the mini netbooks shipping grew less than 20 percent in the first quarter of the year and was accompanied by a steep drop in interest for the Atom processors that power them. Intel's shipments of Atoms dropped from just over 24 percent of all notebook processors to 20 percent; the revenue from the chips dropped 19 percent at the same time.

Netbooks were still particularly strong in the US, as netbooks saw major year-over-year gains each month, but Europe, Japan and other areas didn't reflect that interest.

The market isn't necessarily ended, but the analysts now believe that a recovering economy has led some to stop looking simply at the price of a system and opting for a netbook first. Microsoft notes that most of the growth in Windows PCs came from mainstream notebooks costing $550 to $850, which includes both basic full-size notebooks as well as as crossovers using Intel's CULV chips. The iPad has also been floated as a possible netbook alternative for some, although its $500 starting price and its dependence on having a companion computer reduce its usefulness for the role.

Often, customers are willing to move to much faster processors and more comfortable layouts, researchers said.

The shift nonetheless favors Apple and other companies that traditionally favor more expensive notebooks. Mac sales were still on the rise in 2009 and in early 2010, but it's believed MacBook sales may have been stunted by both switchers that couldn't afford to get Macs at the height of the reception or by Mac users who chose to wait longer before upgrading. [via CNET ">and WSJ]

By Electronista Staff