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Netbook boom to decline with economic recovery

The last few months of economic turmoil has given rise to the netbook – cheap, stripped-down laptops that are mostly used for surfing the web and editing office documents. ย  But a computer analyst says that when the economy recovers, this computing trend will decline and consumers will switch back towards more expensive, powerful systems. […]

The last few months of economic turmoil has given rise to the netbook – cheap, stripped-down laptops that are mostly used for surfing the web and editing office documents.

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But a computer analyst says that when the economy recovers, this computing trend will decline and consumers will switch back towards more expensive, powerful systems.

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Analysis firm iSuppli says that netbook shipments rose 2424% last year and 68.5% this year so far, but one of the firm’s analysts, Matthew Wilkins, said in a statement that the growth won’t last long.

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“People are not buying netbooks because they are truly desirable platforms, but rather because as low-cost PCs they offer a good mix of features at an acceptable price point,” he said.

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“With financial motivation a key factor in many netbook sales, growth of the netbook platformย is likely to slow down when the economy comes back and consumers have more money in their pockets.”

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Wilkins says that netbook shipment growth will slow to 39.6% after this year until 2013 when growth is expected to drop to just 13.1%.

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“While netbook capabilities and performance will inexorably rise in the coming years, the more powerful they become, the more threatening they become to regular notebook models – through comparable performance but lower price,” Wilkins said.

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