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Netbooks A Drag On Pricing: DisplaySearch

10/08/2009 03:10:56 PM 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.

"Mini-notes have been a significant contributor to volume growth
in the portable PC market as their very attractive price points make owning a
secondary computer viable for many consumers. However, 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."

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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-over-quarter 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.

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