Goldman Sachs Thinks iPad Will Destroy NetBook Market

[Michael Knutson]

<div class='os_post_top_link'><a href='http://www.businessinsider.com/apples-ipad-is-going-to-destroy-the-netbook-market-says-goldman-sorry-microsoft-2010-7' target='_blank'>http://www.businessinsider.com/appl...icrosoft-2010-7</a><br /><br /></div><p><em>"Remember a year ago, when netbooks were the fastest growing segment of the PC market? Not anymore. And not ever again, as far as Goldman Sachs is concerned."</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/at/auto/1279128470.usr17748.jpg" style="border: 0;" /></p><p>Wow, quite a brash statement! Goldman offers five reasons why they think this will happen:</p><ol><li>Consumption. iPad focused on consuming information, not producing it.</li><li>Content. Source<script type="text/javascript" src="http://onesite.thoughtsmedia.com/tinymce/jscripts/tiny_mce/themes/advanced/langs/en.js"></script> of content are tightly integrated with the iPad via iTunes and App Store.</li><li>Connected. With WiFi and 3G, the iPad can be constantly connected to content.</li><li>Constant Operation. Almost instant access to information. Instant on. Little waiting.</li><li>Commerce (eCommerce). Single click to buy. Streamlining the process. Impulse Buying.</li></ol><p>Goldman also surveyed 90 Hedge Fund CTOs and found that almost 70% plan to dump NetBooks in favor of tablets over the next two years. They don't specifically mention the iPad, but that's the implication. An even more startling statistic comes from Morgan Stanley, showing the drop in Netbook sales leading up to the iPad launch ( <a href="http://static.businessinsider.com/image/4be2a2f07f8b9ab85b0d0500/netbook-sales-fall-off-cliff.jpg" target="_blank">link</a> ). Is the NetBook dead? What do you think?</p>

[Fritzly]

And what an iPad has to do with a "Tablet" device?
The concept behind the iPad is comparable to the "Mira" or "Smartdisplay" MS launched 10 years ago.
A Tablet is a "real computer".

[Sven Johannsen]

Is the NetBook dead? What do you think?

Depends a lot on what you think a netbook is, and as Fritzly pointed out, what you think a tablet is. If a Tablet is a notebook without a permanently attached keyboard and a usable touch interface (that includes ink), and a netbook is an underpowered notebook that barely keeps up on anything but basic applications, then yea the netbook is dead. I get a much better experience on my iPad than my netbook, for those things that I do that consume information, like e-mail (reading/triage), web browsing, media. But let me need to produce something, like e-mail, document review, trip report, expense report, and I would prefer the netbook, even over the iPad with a BT keyboard.

Thing is, anyone that travels gets the size and weight factor that a netbook provides. I lugged 5-6 lb laptops around a long time, and don't forget that 5 lbs never includes the brick and mouse and other 'peripherals'. Thing is I traded my backkiller for a much smaller device years ago, a Sony TX. That thing is about as light as my current netbook, but has decent performance, and even a DVD burner. It cost an arm and a leg though, but saved my back. I still think there is a market for a small lightweight notebook but at a reasonable price. Not sure people will understand it. When you have a Sony TX for $2000 sitting next to an HP Netbook for $400, it is hard to get the difference without actually using it for more than 5 min in the store. Even at $1000 for the Sony, people would likely balk.

So will iPads destroy the netbook market? Nah, Ipads don't replace them. Netbooks just don't really do anything that well....but they are cheap and portable. If they go away, it'll be their own fault. They need better performance, speed, memory, storage, at minimal weight gain and price increase. But then, are they still netbooks?