Microsoft hopes to get computer makers to drop XP Home and instead install Windows 7 Starter, the lowest-price and least-capable edition of the new OS that will be available worldwide. To quiet a growing revolt by analysts and users angered over news that Starter would restrict them to running only three applications at the same time, last month.

"Retailers and manufacturers shouldn't be putting too much emphasis on PC-like capabilities that could convince consumers that a netbook is a replacement for a notebook," advised Baker. "Instead, they should be marketing mobility, portability and the need for a companion PC to ensure consumers know what they are buying and are more satisfied with what they purchase."