Please ensure Javascript is enabled for purposes of website accessibility

Is It Time to Say Goodbye to Netbooks?

By Conceivably Tech - Updated Apr 6, 2017 at 10:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The numbers look to be falling off a cliff.

Back when Intel (Nasdaq: INTC) reported its quarterly results, there was an indication that netbooks weren't doing quite as bad as we thought they were. However, Microsoft (Nasdaq: MSFT) said that Intel dolled up its average processor price numbers. In reality, there is a dramatic decrease in netbook sales, Microsoft says.

It appears that the bottom is completely falling off the once-praised netbook base. Microsoft told analysts yesterday during its Q1 conference call that the overall PC market declined 8% in the quarter, partly driven by a massive 40% decline in netbook sales.

One analyst called Microsoft out for contradicting claims by AMD and Intel that the PC market isn't looking so bad after all, as processor ASPs increased. However, Microsoft accused Intel of removing netbook processors from its average-selling-price charts, which resulted in an overall uplift of ASPs.

Forty percent is a pretty significant decline that isn't seen very often in an IT product segment. We wonder how much life is left in the traditional netbook and whether it will simply disappear in a market niche, like the UMPC did.

You can leave a response, or trackback from your own site.

More from ConceivablyTech:

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$259.05 (-2.21%) $-5.84
Intel Corporation Stock Quote
Intel Corporation
INTC
$38.19 (-1.14%) $0.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.