As Mini-Note (Netbook) Shipments Grow, Notebook Market Revenue Declines

Mini-Note Category Now 22.2% of Portable PC Shipments and 11.7% of Revenues, According to New DisplaySearch Notebook Report

Sort Date: 10082009
AUSTIN, TEXAS, October 8, 2009—In Q2’09, the value of the total notebook PC market was $26.4 billion, up 10% Q/Q but down 5% Y/Y, according to a new report by DisplaySearch—its Q3’09 Quarterly Advanced Notebook PC Shipment and Forecast Report. Gains in the mini-note (netbook) market were particularly strong, with revenue up both Q/Q (37%) and Y/Y (264%), as shown in Table 1. For larger notebook PCs, revenue in every category was down Y/Y, and only the portable category (those with displays from 13” to 16”) posted Q/Q growth. The strong growth of mini-notes drove their revenue share of the portable computer market to 11.7% in Q2’09.

Table 1: Notebook PC and Mini-Note Revenue and Growth (Millions of US$)

Category

Q2’08

Q1'09

Q2'09

Y/Y

Mini-Notes/Netbook PC

$845

$2,241

$3,072

264%

Ultraportable PCs

$2,123

$1,879

$1,475

-31%

Portable PCs

$22,687

$17,670

$19,726

-13%

Desktop Replacement PCs

$2,213

$2,123

$2,086

-6%

All Portable PCs

$27,868

$23,912

$26,359

-5%

Notebook PCs
(w/o Mini-Notes/Netbook)

$27,023

$21,672

$23,287

-14%

Source: DisplaySearch Q3’09 Quarterly Advanced Notebook PC Shipment and Forecast Report

ASPs for mini-notes dropped almost 30% Y/Y, compared to a 10% decline for notebook PCs. However, mini-notes achieved substantial revenue growth due to more than 360% Y/Y unit growth.

Table 2: Notebook PC and Mini-Note ASP and Growth

Region

Q2’08

Q1'09

Q2'09

Y/Y

Mini-Notes/Netbook PC

$506

$373

$361

-29%

Notebook PCs

$867

$775

$781

-10%

All Portable PCs

$849

$704

$688

-19%

Source: DisplaySearch Q3’09 Quarterly Advanced Notebook PC Shipment and Forecast Report

The low prices of mini-notes make these products attractive to buyers seeking a secondary PC for the home, as well as making them more affordable for first-time PC buyers in emerging markets who are less likely to require all the features available on a larger mainstream notebook PC.

The low ASPs of mini-notes are also making them attractive to telecom providers in every region. They hope to boost revenues by offering subsidized mini-notes when the customer signs a two-year data plan contract. In North America, the devices are also being offered as enhancements by cable TV providers to entice customers to sign up for a package of their services.

“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, Director of Notebook Market Research. “For 2009, we expect continued ASP erosion across all portable computer categories, leading to the first Y/Y decline of portable computer revenue.” DisplaySearch expects these revenue and shipment trends to continue into 2010, with mini-notes accounting for 21.5% of shipment volume but just 10.9% of total revenue for the portable computer market in 2010.

DisplaySearch’s New Advanced Quarterly Notebook PC Report Now Available

Building upon DisplaySearch’s proven expertise in notebook PC market research, the company’s new advanced version of its Quarterly Notebook PC Shipment and Forecast Report will take your company’s notebook PC know-how to the next level. With expanded coverage to the end market, including street prices (ASPs) and system revenue for notebook and mini-note (netbook) PCs by display size/resolution by region, you won’t want to miss out on the latest information that can impact your business decisions.

Highlights include notebook PC and mini-note shipments by region, display size, resolution, along with insightful analysis of the state of the notebook PC industry, including the breadth and depth of mini-note and notebook PCs demand in the major geographic regions, and identifying the key variables influencing changing demand patterns in these markets. For information on this DisplaySearch report, contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.

About DisplaySearch
Since 1996, DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the $770 billion display supply chain. DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources. In collaboration with the NPD Group, its parent company, DisplaySearch uniquely offers a true, end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at www.displaysearch.com/. Read our blog at www.displaysearchblog.com/ and follow us on Twitter at @DisplaySearch.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,700 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit www.npd.com/ and www.npdgroupblog.com/. Follow us on Twitter at @npdtech and @npdgroup.

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