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Issue Report

Collection of full-length papers and in-depth analysis of economic and management issues.

Netbooks: The New Trend in PCs

Netbooks: The New Trend in PCs

JEONG Dong-Young

Feb. 17, 2009

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Originally released on November 17, 2008

Ultra small computers with a 7- to 10-inch screen are not new to the market. Major manufacturers like Toshiba have been releasing products in this category as “sub-notebooks” for years with sales pitches emphasizing the computers' light weight, small size and high performance. But prices, ranging between US$1,500 to US$2,500, made them prohibitively expensive for more casual users, dooming them to niche status. Consequently, sub-notebooks accounted for merely 0.7% (720,000) of the total laptop PC market (110 million) in 2007.

In the beginning of 2008, however, low-cost “netbooks” emerged as the popular choice in the mobile PC market. Led by the ‘Eee PC' from Taiwanese PC maker Asus, these new “netbooks” proliferated rapidly. Projected demand for these computers in 2008 was forecast to be more than 10 million.

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