Strong Mini-Note PC Demand Expected to Buoy Notebook Market in 2009

AUSTIN, TX, April 1, 2009. Despite what is looking to be a rather dismal year for the PC industry as a whole, mini-note PCs, or netbooks, are forecast to grow at more than 65% Y/Y in 2009, while the “traditional” notebook PC market is forecast to grow at just 3% in 2009, according to the DisplaySearch Q1’09 Quarterly Notebook PC Shipment and Forecast Report.

With the economic crisis on everyone’s minds, many buyers are adjusting their discretionary spending and purchasing mini-notes as lower-priced alternatives to notebook PCs. Some of the growth in the mini-note PC market is a function of cannibalization of entry-level notebook PCs, but the factors that helped propel the mini-note market initially—low ASPs and basic functionality—remain the key forces propelling growth. DisplaySearch expects consumers will return to typical buying habits after the economy crisis is over, preferring more full-featured and higher-priced notebook PCs.

DisplaySearch’s findings also examine how factors such as falling panel prices have enabled the shift in mini-note display sizes first from 7 in. to 8.9 in., and now from 8.9 in. to 10 in., while maintaining comparable street prices for the system.

DisplaySearch expects that Y/Y growth of 66% in 2009 will push the mini-note PC market to exceed 27 million units, while 3% Y/Y growth for notebook PCs will nudge that market to 133 million units.