Computers

10 Questions To Ask About Netbooks

(INFORMATION WEEK) - We’ve seen laptop alternatives before. So what’s different about netbooks? Simple: They’re really inexpensive and provide better functionality than any smartphone.

Market numbers tell the tale: Netbook shipments surged to $3 billion in the second quarter from $845 million in the same quarter a year ago–264% year-over-year growth, according to market research firm DisplaySearch. At the same time, the average price of a netbook was $378, versus $787 for a laptop. The devices will account for 22% of all laptop, notebook, and netbook shipments this year, compared with 5.6% last year. Research firm VDC predicts total netbook sales surpassing $33 billion next year.

All the major vendors are active in the market: Asus and Acer were early netbook hardware leaders, but their advantage has disappeared as Dell, Hewlett-Packard, and Lenovo have responded aggressively. Intel dominates netbook CPUs. Operating system-wise, Microsoft leads with low-cost XP licensing. There are a slew of netbook-ready Linux builds and an up-and-coming challenge from mobile phone CPU giant ARM Holdings. Google says Web-focused netbooks running its Chrome OS will arrive late next year.

Netbooks aren’t just a consumer play. In our recent InformationWeek Analytics Windows 7 survey of 1,414 business technology pros, 36% say they already have some netbook use in their companies and 72% expect some use within the next two years–with 19% planning extensive deployments.

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