Forrester: Netbooks fill a niche, but branding is dangerous

16.01.2009
Netbooks are more than a fad, and fill an important niche in the market for consumer PCs, according to a Forrester Research report. However, the report warned that manufacturers were confusing consumers with "dangerous" branding strategies.

Forrester Analyst J. P. Gownder said more than a third of U.S. consumers are interested in netbooks as a second or third PC they can use on the go. A quarter of consumers would consider giving one of the ultra-light, low-powered and inexpensive (most cost between US$200 and $500) portables to their children.

"Netbooks are therefore more than just cheap alternatives that can hurt sales of traditional PCs -- rather, they serve a distinct purpose," wrote Gownder. "In fact, netbooks represent a third form factor in the consumer PC space, in addition to laptops and desktops."

Helping drive netbooks' success is the fact that half of all U.S. consumers believe that mobile phone screens are too small for data activities aside from messaging, said the report. "For typing long emails, surfing the Web, or using Web-based applications, the netbook offers a clear advantage over most mobile phones. For these consumers, netbooks represent a logical device that's in between a PC and a mobile phone."

Another trend in netbooks' favor is aesthetics. "Netbooks, like mobile phones, are even stronger fashion accessories [than designer laptops] -- they fit in any bag or purse and can be carried around nearly 24x7."

HP's high-fashion netbook, the Mini 1000 Vivienne Tam edition, has a hot pink peony exterior and could pass for an evening clutch. However, it also costs more than other netbooks at $700.