
China’s netbook market offers high margins that no PC or CE vendor wants to miss. However, In-Stat reports the market is not as big as it first seems, due to a few factors, not all of which would find general acceptance.
First, 3G network capacity for data access remains limited. Bluntly, it is difficult to see what that has to do with it. This Netbook is used on a WiFi system that is run around the house. And the same applies in every overseas hotel.
Second, Intel wants to limit market development in order to protect its notebook market. That seems illogical now that the chipmaker has launched its latest ultra-low voltage (ULV) platform which is very much netbook territory.
Ashley Liu, In-Stat analyst, said, "Future market trends for netbooks in China remain unclear. The result may be that the netbook ends up being a transitional product." Transitioning to what seems open for some debate. It is difficult to think of a direction they could travel.
So that we are know we are all talking about the same things, netbooks are smaller laptop computers, usually with an 8- to 12-inch screen, and are designed for wireless communications and internet access.
In-Stat estimates that TD-SCDMA subscribers will number less than five million by 2011, indicating limited space for end-device market growth. But that is a mobile phone issue, not a Netbook problem.
MarketWatch reports that a total of 2.46 million netbooks will be shipped in China this year, more than half via telco channels. Vendors including Samsung and Freescale have introduced ARM-based solutions targeting Shanzhai (cloned) netbook vendors who have been unable to get Atom chipsets from Intel. This is one report that might be regarded with a small amount of skepticism. Netbooks have taken a major market share and to confuse them with mobile phones is not the right way of forecasting their future potential.
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