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Netbooks A Drag On Pricing: DisplaySearch

11/08/2010 12:01:00 AM Eastern

AUSTIN, TEXAS — DisplaySearch is predicting
that revenue for the portable computing
category will drop for the first time this year.

The research company blamed falling average
selling prices (ASPs) of netbooks as the
primary culprit for the decline.

“The lower ASPs of these devices are clearly
having a negative impact on portable PC market
revenue,” said John F. Jacobs, notebook
market research director. “For 2009, we expect
continued ASP erosion across all portable
computer categories, leading to the first
year-over-year decline of portable computer
revenue.”

DisplaySearch expects netbook sales to
comprise 21.5 percent of unit shipment volume
for the category, but only 10.9 percent of revenue
for 2010.

The second-quarter 2009 notebook PC report
states the category generated $26.4 billion
in revenue, a 5 percent increase compared
with the same period in 2008. Quarter-overquarter
revenue was up 10 percent.

Netbook sales were up 264 percent for the
quarter on $3 billion in sales. All other notebook
PC product areas saw sales fall.