With the sluggish economy taking its toll on most industries, there appears to be at least one standout in the tech industry – the Netbook.
Designed primarily for wireless communication and access to the Internet, Netbooks are quickly becoming a “runaway hit with consumers” says CNET news reporter Erica Ogg, especially in today’s economy. As consumers tighten their budgets, many are choosing the smaller, more lightly featured Netbook until they feel more financially stable, she says.
According to DisplaySearch’s Quarterly Notebook PC Shipment and Forecast Report, for the first quarter of 2009, the diminutive cousin of the traditional Notebook is on track to grow 65% over the course of the year from 2008’s totals.
Conversely, traditional Notebooks are expected to grow just 3% this year. And, DisplaySearch predicts, Netbooks will comprise one fifth of the 133 million Notebooks shipped in 2009.
Perhaps hoping to capitalize on this trend, phone giant AT&T has begun selling Netbooks in an innovative new way, taking a page from the way that they offer cellphones.
Residents of Atlanta and Philadelphia are being encouraged to “lighten their laptop” and “simplify their technology experience” with new offers and services during a limited trial in select company-owned AT&T stores.
The Netbooks, which feature home broadband and Wi-Fi access, are available initially at AT&T stores for $50 US, plus a two year data plan starting at $60 US a month. The promotion also includes 30 minutes of in-store technical support, and the company will pre-install its ‘Communication Manager’ program which gives customers the ability to manage their mobile and Wi-Fi connections.
"Broadband is not just about speed anymore – it’s about mobility," said David Christopher, CMO of AT&T mobility and consumer markets, in an announcement. "We want our customers to have Internet at Home and On the Go. Pairing mini laptops with AT&T’s home, Wi-Fi, and mobile broadband offerings enables consumers to get the most from their new devices, virtually anywhere, anytime."
While the plans may appear pricey, AT&T has also thrown in access to its thousands of Wi-Fi hotspots in addition to the home broadband service, notes In-Stat analyst Daryl Schoolar. He calls it "home and on-the-go broadband" and says the combo is just as important a trend as the selling of subsidized Netbooks.
“With growth in new home broadband service subscribers slowing, providers will need to steal existing broadband users away from other providers if they want to continue to grow their customer base,” Schoolar said in response to AT&T’s offer. “Our research shows that current broadband users would be willing to switch from their current broadband provider to one that could combine a home and on-the-go service.”
But DisplaySearch says the Netbook trend is not likely to last. The research firm predicts that once the economy turns around, consumers will return to buying the Notebook loaded with the most features that they can afford.
– Lesley Hunter
