When Nokia and Sony log into the nascent netbook market, the computing world is bound to take notice. While the world?s largest mobile phone maker is touting a feature packed bundle of connectivity, consumer electronics giant Sony is promising to add a touch of style. After shying away from these small Web connected computers for long, both are promising to increase the decibel level in the already buzzing market.
PC bigwigs including Hewlett-Packard, Dell, Lenovo, Acer, ASUS, HCL and Zenith have already been pushing their netbook offerings since last year. The new high-profile launches are not only bringing the entire netbook category into limelight, but also morphing the basic characteristics of these compact Web connected computers.
Netbooks are gradually evolving from the stripped down compact cousins of notebooks to small power packed bundles of connectivity on the go. While price tags still tend to be lower than laptops, low prices are clearly not the sole selling point. ?These gadgets have broadened the spectrum of the global PC market in a spectacular way mainly because of their favourable feature to cost ratio. Given the low PC penetration rate, we believe, there is huge potential for the netbook category in India,? says S Rajendran, CMO, Acer India.
Shipments in the second quarter almost doubled over the first quarter of 2009 in India, according to IDC?s latest numbers. Sale of about 42,000 netbooks last quarter might not sound all that impressive, but it is more than the total number sold in the entire year 2008.
?The mini notebook PC segment saw the emergence of new entrants like BenQ and Samsung, while existing players like Acer, Asus, and Lenovo have moved to consolidate their positions. With more vendors slated to enter this space and with the launch of Microsoft?s Windows 7 OS lined up for October 2009, the India mini notebook PC space could see a lot more traction in the forthcoming quarters,? says Sumanta Mukherjee, lead PC analyst, IDC India. As per IDC estimates, the worldwide mini notebook market is expected to grow from 11.6 million units in 2008 to over 50 million units by 2013.
For starters, netbooks (also called a mini PC, sub-notebook or ultra portables) takes the idea of a laptop further, creating a new market above handheld computers, smartphones and personal digital assistants. The primary characteristics of these are smaller size and weight, which are pretty similar to the average diary, as well as the cost that is less than that of a standard laptop. Consumers have become value conscious and are looking for solutions that can fit their budget requirements. With netbooks, users can expect a high-value computing experience at extremely affordable rates. Connectivity options are also being touted in the market. These include Tata Teleservices launch of a netbook embedded with high-speed internet access for mobile internet connectivity and broadband access.
Lower price tags have caught several buyers? attention in the current economic scenario, where there has been a visible cut in IT spends and consumer electronics budgets. Main drivers that will push netbooks to the next level of growth in a country like India include faster and more robust computational power, integrated cellular connectivity, stronger channel relationships, and collaboration with mobile service providers to integrate more wireless functionality tailored to various customer segment needs. ?While netbooks contribute less than 10% to the overall Indian PC market, this will increase substantially due to evolving PC usage,? says Diptarup Chakraborti, principal research analyst, Gartner India. According to a report by the research firm Display Search, the netbooks accounted for 14% of total global notebook shipments in July-September 2008.
Usually costing around Rs 20,000, the price band is now stretching upwards as new players bring in jazzier feature-loaded products including bigger screens, gesture sensitive touch-pads and snazzier connectivity options.
A netbook is a streamlined mobile device designed not only for the internet, but also for basic computing. In the context of it being a Net centric device, it empowers the user to get up-to-date news, latest scores and weather information, access email, social networking sites, digital videos, photos and music. In addition, basic computing is fully enabled and it supports conventional applications like document preparation, calculations (in spreadsheets) and presentations.
Some of the salient features of a netbook include its screen size that ranges from 8.9 to 10.2 inches and more recently 11.6 inches. Though most netbook keyboards save space by consolidating some keys and shrinking others, there are products that also have full size keyboards. Currently 90% of netbooks use the Intel Atom270 running at 1.6GHz. Netbooks usually offer 1GB memory which can be upgraded up to 2GB. It also provides a user with an average of four hours of battery life all the way to eight hours on the high end and 1.5 to two hours on the low end notebooks. A netbook equipped with a 6 cell battery has a much longer life facilitating full day computing. Most of these devices run on Windows or Linux.
While netbooks have been doing rounds since last year, market has been buzzing with action this year. Zenith, which launched its Doc book in January this year, is planning a new variant every three months. Sony launched its first netbook, Vaio W, in India in August, 2009. It is available in three colour variants?brown, white and pink; and is priced at Rs 29,990. Lenovo began its foray into the netbook market in India in August 2008, with the introduction of the 8.9-inch screen IdeaPad S9 and 10.2-inch screen IdeaPad S10. While ASUS launched its first Eee PC in June 2007 in India, Acer and HP kick started with their netbook offerings in the year 2008.
Most netbooks are aimed at filling the void between notebooks and smartphones. Notebooks may prove to be bulky to carry around while smartphones may be too small to surf the internet. Netbooks are ideal as they are small and light but with the right configuration to enable fun-filled entertainment. Though netbooks are priced at slightly higher price points than smartphones, they offer the much-needed spacious keyboards and wider displays. Unlike smartphones, netbooks are also capable of running complex software programs. Much of the netbook?s use is therefore determined by the specific needs of the consumer. ?We could say that a smartphone is typically used as a phone or connectivity device and netbook as an alternate PC device, even though this is still an early trend. Currently, SMBs are clamouring for bigger screen sizes and hence a netbook would obviously be a more appropriate choice than a smartphone,? says K Ramakrishnan, country manager, marketing, Lenovo India.
Typical applications include basic computer education and for small business and home uses. It can perform very well on emailing, Word, Excel, Powerpoint and many other basic uses. Other than consumers switching to these highly convenient netbooks, the segment has tremendous potential for adoption in segments like education, sales force automation, entertainment and for executives on the move who need a fully functional computing experience. ?Netbooks have formed a new category of secondary PC. The potential buyer for a netbook either includes the first time PC buyer, secondary buyer (who already have a PC) and SME?s, among others. So there is no clear mention of its buyers. Anyone and everyone can opt for netbooks,? adds Chakraborti.
Potential users are likely to include both first-time buyers seeking a low-cost introductory PC as well as experienced users seeking a low-cost second or third PC for themselves or a relative. ?The netbook segment is slated to increase at a rate of 100% in the current fiscal. The Eee PC which was launched in June 2007 can also be the first PC for young learners,? says Stanley Wu, country head, notebooks and Eee PC business, ASUS India.
In terms of strengths, netbooks are high on battery life, due to their compact size and come at really affordable prices. However, because of lower processor speeds as compared to notebooks, multi-tasking can be a challenge. The compact size of netbooks is an advantage and the low price tag is attracting consumers from different walks of life. ?Being low cost does not mean it will only cater to a new set of users; although it does create an opportunity for more people to carry around a device that enables them to share pictures, music, or chat on the internet,? Sachin Thapar, division head, information technology (IT), Sony India
Some vendors like Zenith feel that the netbooks are still at a nascent stage and would require atleast two years before they begin to neutralise the personal computer market. ?Existing personal computers provided by organisations are posing a challenge to the growth of netbooks in India. However, we are hoping that second PC buyer market provides a boost to the netbooks category in the coming fiscal. We are expecting the market consumption to reach 10% in FY 2010 -2011,? says Devita Saraf, executive director, Zenith Group.
Netbooks are clearly here to stay, whether the boost comes from second buyer category or new niches opened by the convenience of a more portable PC. As new entrants like Sony and Nokia introduce jazzier, feature packed versions and the existing players pick the gauntlet, a new computing experience seems to be on its way.