Netbooks slow decline of PC market, but bring new headaches

From TG Daily -

IDC estimates that global PC shipments are down by about 6.8%, the most decrease since Q3 2001. Only the netbook segment, with 5.7 million shipped in Q1 has significant growth and is widely considered to be what is keeping PC makers alive these days. But the problem is those sales apparently come at the expense of traditional notebooks.

While those 5.7 million units produced $2.2 billion in sales (average price of $386 per unit), the sales volume of the more profitable notebooks fell by $8.4 billion from one year ago. So notebook makers are trying to come out with higher priced, higher margin netbook models. The problem is AMD is preparing low-cost mobile platforms due out later this year, which will drive down the cost of mainstream notebooks, so the situation isn't likely to change.

Moreover, IDC believes that netbook prices will increase over time, and the segment will grow to a share of 9.5% of all PC shipments and 17.3% of portables, causing 2009 shipment value to drop by almost 18% while volumes decline by just 3.2%.