The Big Threat to Apple's Dominance: Netbooks

Paul Lilly

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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