Netbook shipments this year could reach around 32.7 million units, propelled by competitive pricing and improved hardware capabilities. Shipments will be close to double that of 16.4 million netbooks that shipped last year, said John Jacobs, director of laptop research at DisplaySearch.

The latest estimate represents a hike on the company's previous forecast of 27.5 million netbook shipments for the year.

Netbooks will also take a larger chunk of worldwide laptop shipments as mainstream laptop shipments flatten, Jacobs said. Worldwide mainstream laptop shipments will total 129.5 million, flat compared to last year.

Buyers are drawn to netbooks because of competitive pricing between US$300 to $500, Jacobs said. PC makers have also improved netbook hardware with larger screens and keyboards, which could further boost demand. The improvements were necessary as the cramped keyboards and small screens were resulting in many netbooks being returned, Jacobs said.

Some PC makers are also offering netbooks with better graphics capabilities, Jacobs said. For example, Lenovo recently introduced the IdeaPad S12 netbook, which has a 12-inch screen that can play full high-resolution movies with the optional Ion platform from Nvidia. The platform couples Nvidia's GeForce 9400 graphics core with Intel's Atom chip.