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When Will the Netbook Finally Die for Good?

By Evan Niu, CFA - Apr 16, 2013 at 4:48PM

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A recent study from IHS iSuppli predicts that netbooks will die for good by 2015. Shipments are expected to drop precipitously this year. Who wins and loses from the demise of the netbook?

Within the stagnating PC market, netbooks are getting absolutely crushed. IHS iSuppli estimates that netbook sales will total approximately 4 million this year, down from 14 million last year. That's an incredible drop in one year. Netbook shipments peaked around 32 million in 2010, which also happens to be the year that Apple (AAPL -5.64%) launched the iPad and reinvigorated the tablet market. iSuppli predicts the netbook to totally die by 2015. Google (GOOGL -3.93%) has emerged as a prominent player in this segment with its low-cost Chromebooks. If netbooks die, low-end Chromebooks may die with them, although Google will still benefit from rising Android tablet adoption.

In the video below, Fool contributor Evan Niu, CFA, considers the implications for investors.

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