Are netbooks the future of the PC?

by Scott Bicheno on 30 January 2009, 07:00

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD), NVIDIA (NASDAQ:NVDA)

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A major crossroad

In fact it could be said that the PC industry is at a major crossroad. The additional nail hammered into the coffin of the entry level desktop sector by netbooks means that we could soon be nearing the time when one of the major OEMs pulls out of the mainstream desktop market entirely.

We now have quite a clear PC form factor spectrum available to consumers, loosely descending in both size and price as follows:

  • Full sized gaming/multimedia desktop
  • Full sized notebook
  • Compact desktop, and/or net-top, and/or console
  • Netbook
  • Smartphone

There will probably always be markets of some size for all of the above, but what remains unresolved is which will be the biggest. In other words, where is the mass market going to be?

Current trends seem to point to the netbook as the mass market smart device of the future, but there are still many arguments in favour of other form factors.

For people who spend a lot of time on their PC, for example people who work from home or competitive gamers, there's still nothing that does the job as well as a desktop.

"People are increasingly happy to confine their mobile internet access to a more convenient handheld device"

Given that netbooks still need to be carried in a bag, as opposed to a pocket, you could argue that you might as well go for a full sized netbook and get the bigger screen, better spec, etc.

It's assumed that many netbooks are either bought either as a first entry into the PC market or as a supplement to the main system. However the compact desktop and, increasingly, console markets also serve that function.

The popularity of the iPhone shows that people are increasingly happy to confine their mobile internet access to a more convenient handheld device, reverting to a full sized notebook or desktop only when they are able.