Netbooks Hot, Revenues Not

Can anyone really not see this coming?

Even as mobile warriors snatched up netbooks by the millions because of their mobiliyt, ease of use, light weight, and, in some models, speed.  

However, there is an impact as a result of this.  Lower revenues.  But more than that, it really speaks the weakness of the sector as PC growth grew a mere 1% while revenue dropped 20%.

Liluputing's blog has an interesting note.  Even while netbook sales skyrocketed, I have always thought some folks bought them because as a secondary computer, again for it's mobile qualities.  But we'll know in 2009 if the netbook invasion will continue as economic conditions have curtailed consumer spending worldwide.

It's my belief that the industry is in trouble if mobile users decide netbooks and low-cost computers are the way to go.  For years now, we have been devoid of innovation and this lack of compelling reasons for consumers to upgrade.

This can turn into a vicious cycle for the computer firms that are relying on netbooks to prop up their sales. With shrinking revenues and profit margin combined with a lack of vision and innovation, we can be looking a downward spiral not unlike what we've seen with the television industry in the 80s.  

Note:  There's a reason why Sony come out with the Viao P.  And I applaud their decision to come at the netbook segment in a different way.  Now, I like good inexpensive tech as the next guy.  I love my MacWind.  But Sony will insulate itself from a shrinking revenue pie.  

Impact on mobile users:  I think netbooks will only get cheaper and cheaper.  I'm talking about XO cheap.  The magic number for netbooks is going to be $200.  There's a chance we'll reach in 2009 particular if the economy worsens and these PC guys start eating their young.

Source:  Litiputing