The Big Threat to Apple's Dominance: Netbooks
The Big Threat to Apple's Dominance: Netbooks
Posted 01/21/2009 at 8:26am
| by Paul Lilly
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Apple had a good year in notebook sales in 2008, but according to Forbes, Steve Jobs' health is just one of the troubles Apple will face in 2009. Like everyone else, the economy has taken its toll, sending Apple's share price down by more than 50 percent in the past six months from $171.81 to $82.33. But it's the emerging netbook market that could ultimately bite into Apple's revenue.
Despite Apple's success in the mobile PC market, average notebook prices are far below what you can expect to pay for a MacBook, and prices will only go lower as the economy continues to struggle. Acer's Aspire one, which sells for around $320, became the best selling netbook in 2008 putting Acer in fourth place in the PC market and ahead of Apple. And with Intel's next-gen Atom processor promising lower cost netbooks, Apple may find itself struggling to compete, whose lowest price notebook sells for $1,000.
Catch Forbes' full analysis here, then tell us what you think below.
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Bender2000
January 21, 2009 at 9:31am
Apple's products compete with boutique products. Netbooks are far from that. Forbes analysis is like saying that Gucci's loafer line is in trouble because of the popularity of Crocs. A netbook is not interchangeable with a MacBook the same way it is not interchangeable with an Alienware laptop. The boutique market will probably shrink substantially so Apple's share will shrink too but that is not related to netbooks. Netbooks are providing basic computing for less and they have the familiarity of Windows XP, and the associated software packages, to be good second computers. If you had to have ONE laptop to do everything, and that would include video editing, DVD ripping and iTunes and gaming, would a netbook work for you?
The one Apple MacBook that would be affected is the Air. That makes SO many compromises to be mobile that it loses almost all benefit over a netbook. Why pay $1800 or more for no optical drive, small HDD or SSD, 2 USB ports?
Bender2000
January 21, 2009 at 11:18am
The sub $1000 MacBook now gets faster with faster CPU, frontside bus and new graphics. Still not a threat to netbooks. I wonder how that Sony lifestyle PC netbook will fare, and can you hackintosh it?
I Jedi
January 21, 2009 at 9:21am
Can't say that I'm not too surprised here that Apple isn't doing that well with it's laptop sector. When you gear all of these products towards richer people, you tend to cut out the middle man, which is inevitably your main source. Oh, well, idc to use Apple anyways.
Bender2000
January 21, 2009 at 9:39am
The article was commenting that Apple was going to do worse this year in sales because the netbooks would steal sales. That hasn't come to pass yet. I think that Apple will not lose as much as other manufacturers in the coming year because the richer people will be less affected by the recession. Marginal Apple buyers will certainly drop out and get netbooks. But I think more people will decide to forego something like a Dell Inspiron for a netbook.
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