Netbook Sales Booming – But Are Manufacturers Heading Back to Larger & More Profitable Products?

Interesting netbook sales data from…

Netbook Sales Continues to Soar

It reports that netbook sales increased from $845 million to $3 billion when comparing the second quarter of 2008 to 2009. The problem, as the article indicates, is that low-cost netbooks don’t offer much of a profit margin. And, therefore, it really does prop up the manufacturers’ bottom lines much.

It seems to me, though, that some manufacturers like Dell are rethinking their netbook strategy and moving some of their design and marketing muscle back to larger and more profitable notebook or ultralight notebook models. The new MacBook-air-like ultra-think Dell Latitude Z, for example, starts at $1,799 (after a $200 instant savings discount). And, higher end netbooks with options like HD video are pushing price points to or above the $500 mark.

It wouldn’t surprise me if $299 and even $399 netbook models soon become mere sales attractors which entice people to look but then buy more expensive models with desirable options like HD video and GPS.

Publish date: October 9, 2009 © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT