Myce.com Latest Updates

Asus: The iPad is killing netbook sales

Posted at 17 August 2010 13:00 CEST by wconeybeer

Should Apple be blamed for a decline in netbook sales across the industry? Asus President and CEO Jerry Shen seems to think so.

At an Asus investors’ conference on August 13th, Shen blamed Apple’s popular iPad tablet for his company’s lower-than-expected second quarter earnings. Also, as a result of the decrease in sales, the company is planning on scaling back third quarter netbook shipments.

“Because of decreased shipments of motherboards, notebooks and netbooks, Asustek’s financial performance for the second quarter declined on quarter. Asustek will continue to offer Eee PCs and will step into the tablet PC segment with its Eee Note and Eee Pad series,” Shen said regarding the company’s future plans.

Along with several other manufacturers, Asus will be stepping into the tablet PC market this Fall. The 8.9” Eee Note will be their first to debut in October with a $199-$299 price tag and a Linux OS. The larger Eee Pads will likely launch in early 2011 with a 10” Android model for $399 and a 12” Windows 7 model for $1000.

Shen’s claims about Apple stealing netbook shoppers are nothing new. As we reported back in May, a consumer electronics poll by an independent firm showed that 30% of prospective netbook customers decided to buy an iPad instead. A second poll by the same firm showed that 78% of consumers polled were leaning toward purchasing an iPad while only 22% were considering netbooks instead.

Industry analysts are only expecting the market to get worse for netbook manufacturers. In April of 2010 year-over-year sales for netbooks dropped 13 percent, and were expected to continue to decline through 2012 as tablets become more prominent.

Even with all the experts’ predictions, the actual performance of these products will depend upon the pricing and quality that manufacturer’s offer compared to the needs of consumers and what they want to pay. Just because Asus is entering the tablet market doesn’t mean that they’ll regain their share back from Apple. The iPad has been a unique and easy-to-use offering for the right price. Whether manufacturers like Asus will be able to put out a strong iPad competitor will remain to be seen.

Click for more news

netbookse-readers and tablets

Click to share

There are 19 comments

AllanDeGroot
MyCE Resident
Posted on: 17 Aug 10 19:47
    Frankly, I think that the majority of people who live with a netbook for any length of time discover that lack of an optical drive (to play DVD's or music)
    is something they aren't willing to give up.

    I'm personally not rushing out to buy an iPad because I've already got a computer with similar capability.... a Fujitsu Stylistic tablet.

    Lack of a physical keyboard, having to poke at an on-screen keyboard doesn't do it for me (or many others) is another failing.

    but atleast the average netbook HAS a physical keyboard.

    So I'd look elsewhere for reasons for netbook sales to be declining.

    All that being said I'm not likely to give up my tablet... Why?

    Because I put a bigger (120gb) HDD in it and I'm essentially using it as the worlds largest, most capable iPod Touch.... with a 10.1" screen

    ... if you ignore the fact that I must use the stylus to do anything with it.

    Oh, it still has it's internal WLAN and a browser, so it'll do other things too, but I've got a REAL notebook for those things....

    AD
    ivid
    MyCE Resident
    Posted on: 17 Aug 10 19:54
      I'm not an Apple fan, I was a long time PC user and used to hate Apple.

      I got an iPad on launch day on impulse and I have hardly used my desktop PC at home for anything since I got the iPad. Its such a better experience using the iPad from my couch, dining room table or wherever.
      So its not only netbooks which are losing out, but probably much more. I won't need to upgrade my 5+ year old desktop PC for even longer now since I hardly use it anymore. Never thought that would happen.

      Lack of flash is an occasional annoyance but you know what ? I don't get bombarded with all the flash ads etc.. its very nice for that.
      Illuminatus
      MyCE Member
      Posted on: 17 Aug 10 23:08
        Well... an iPad and a Netbook are absolutely two different types of devices. iPad has limited functionality, i.e. no multitasking, no flash, etc. iPad is doing well cuz of its simplicity: simple needs, simple solutions.

        The iPad can not perform like a Netbook. iPad is a giant iPhone, no less, no more. A Netbook is a tiny Laptop. No optical drive? Oh well, don't forget the external optical drive. A Netbook can cope with it and brilliantly...

        Just a question: are you able to run for instance World of Warcraft on an iPad? A Netbook can and without any problems. Why is it "important"? Cuz it shows the capability of the device.

        To show my objective attitude to the issue: I have been using an iPhone for years.

        And still I dont have any intention to buy an iPad. I will stick to my Sony Netbook.
        Blu-rayFreak
        MyCE Resident
        Posted on: 17 Aug 10 23:46
          Quote:
          Originally Posted by AllanDeGroot
          Frankly, I think that the majority of people who live with a netbook for any length of time discover that lack of an optical drive (to play DVD's or music) is something they aren't willing to give up.
          Really? I've got an ultra low voltage notebook with no optical drive and I rarely ever miss it. I've thought about buying an external slim DVD drive for optical media, but since I've rarely seen the need, I still haven't got one after owning this notebook for over 7 months.

          If I ever do find the need to play something from physical media, I use a USB drive. Optical media is on the way out.
          Illuminatus
          MyCE Member
          Posted on: 17 Aug 10 23:55
            Here are 42 reasons why the 1st generation iPad will never kill Netbook sales: http://www.pcmag.com/article2/0,2817,2358590,00.asp
            Circlestrafe
            MyCE Junior Member
            Posted on: 18 Aug 10 20:16
              I have no use for either the iPad or a netbook. Neither has the the capabilities I want, need, and demand from a computer.

              I think the decline in netbook sales is, in part, due to the price (it's just not worth what you pay), limited, everything; it's just limited. There is no CD/DVD/Blu-Ray (unless you go external..but wtf is the point of a netbook then?), I'm also assuming the netbook has usb or some port to actually connect an external device, not sure if all come standard with that necessity. I remember seeing an MSRP of $699 on a netbook and I'm not going to bother verifying and referencing that, just take my word for it or use google, but if that tranlated to a street price of $599 or even $499, who in their right mind would pay that? Price definitely a factor.

              There IS a market for the netbook and iPad, I'm not saying there isn't. I just think it's possible people actually want more than what they thought a netbook offered, therefore they have no reason to buy a netbook and spend their money on something of value, perhaps a laptop!

              The novelty has worn off for many. More people want more than the features some people find the netbook perfect for.
              VArase
              New Member
              Posted on: 18 Aug 10 21:16
                Quote:
                Originally Posted by Illuminatus
                iPad is a giant iPhone, no less, no more. A Netbook is a tiny Laptop. No optical drive? Oh well, don't forget the external optical drive. A Netbook can cope with it and brilliantly...
                Actually, an iPhone is a tiny iPad. And an iPad is a tiny limited Mac with a touch interface.

                Quote:
                Originally Posted by Illuminatus
                Just a question: are you able to run for instance World of Warcraft on an iPad? A Netbook can and without any problems. Why is it "important"? Cuz it shows the capability of the device.

                To show my objective attitude to the issue: I have been using an iPhone for years.

                And still I dont have any intention to buy an iPad. I will stick to my Sony Netbook.
                I don't have an iPad, and the iPad can't run World of Warcraft. But a PC can't run Angry BIrds either, for $1.99.

                People comparing NetBook functionality with the iPad are mostly missing the point.

                I think consumers are sick to death of the maintenance and problems they run into with larger, more complicated PCs. I would get ulcers if I gave my mom a Win OS laptop, just waiting for that "thing doesn't work anymore" call and the support visit to reimage her machine - but I wouldn't hesitate to give her an iPad.

                I think the things the iPad does best are the things most people want to do with their limited-capability PCs. Browse the web, handle your email, play a few games (those that don't require a doctorate in advanced game theory), look at your pictures, play a little music.

                I don't have an iPad, but I do have an iPhone. When I need to transcode video, I do it with my MacBook Pro, and I'm not about to give that up.
                Illuminatus
                MyCE Member
                Posted on: 19 Aug 10 01:06
                  "Actually, an iPhone is a tiny iPad.".

                  Let us say it depends on the viewpoint. As the iPhone was released (much) earlier, it is more logical to consider it as the basis of comparison. And not vice versa. Oh, and btw, if my memory does not fail me the iPhone's OS (iOS) served as a basis for iPad's OS, did not it?

                  "But a PC can't run Angry BIrds either, for $1.99."

                  Why would you shoot a bird with a cannon. A cannon is for different purposes. What is the point?

                  "When I need to transcode video, I do it with my MacBook Pro, and I'm not about to give that up."

                  That is undersandable. By the way, a Netbook is capable of transcoding a video and what about the iPad? Don't bother, we know the answer.
                  DukeNukem
                  MyCE Resident Commenter
                  Posted on: 19 Aug 10 18:58
                    "The iPad beat us up and took our lunch money. Boooo hoooo."

                    Suck it up, Asus. Your 200 different models of netbooks could be hurting your sales, too. Maybe sales are down because people who want a netbook have now purchased one. I bought a nice Gateway netbook in January. I'm good for the next 5 years. No soup for you, Asus.
                    Chad_Bronson
                    MyCE Senior Member
                    Posted on: 21 Aug 10 20:07
                      I like the audacity to of ASUS to blame another company because it's netbooks suck!

                      Tell you what, why don't you eliminate your 1001 different models of a netbook to a few... maybe designer standard that proves to be the iPad killer? Everyone would like a netbook but are put off by the fact they are simply uneconomical when for a little more you can get a laptop... or an iPad.

                      No,. because its easier to whine. Like what DukeNukem said "Suck it up" and get a grip.
                      ivid
                      MyCE Resident
                      Posted on: 23 Aug 10 20:47
                        Illuminatus most of those 42 reasons are just technical nitpicking and plain irrelevant once you actually use an iPad on a regular basis. Some points are dead wrong. That article was written way before iPad was even released.

                        I actually agreed with many of those points before I got my iPad because I am a long time PC user and previous Apple hater (now I only mildly dislike them).
                        Now having used my iPad for 90% of my home computing since I got it. The awesome coolness of the device outweighs my dislike for Apple

                        I would never say I could get rid on my PC because of my iPad. Its just that my PC has been relegated to the stats of being a utility for my iPad, because I'd rather sit back and relax anywhere in my house when web browsing, emailing, Skyping etc..
                        But I would never consider a netbook over an iPad as a my 2nd/mobile computer.
                        Illuminatus
                        MyCE Member
                        Posted on: 23 Aug 10 22:41
                          Quote:
                          Originally Posted by ivid
                          ...most of those 42 reasons are just technical nitpicking and plain irrelevant ...
                          I am not really fond of ex cathedra statements unless they are based on facts. Let us see what is "irrelevent" (just some points out of 42):

                          "- ...Netbooks are cheaper... - TRUE.
                          - ...there is absolutely no Flash support in the iPad, we at least know netbooks have full Flash support.... - TRUE.
                          - ...Netbooks have USB ports, about two to three on average. The iPad has none... - TRUE.
                          - ...Higher Resolutions. There are several 10-inch netbooks that offer 1,366-by-768 resolutions, namely the HP Mini 5102, Dell Mini 10, and Sony VAIO VGN W-Series. The iPad tops out at 1,024 by 768.... - TRUE.
                          - ...Removable batteries. You can buy an additional battery for your netbook if you want, allowing it to last for multiple days... - TRUE.
                          - ...Every single netbook comes with a webcam for video conferencing and chats... - TRUE.
                          - ...Multiformat card readers are built into every netbook, so you can download photos and videos from your camera.... - TRUE.
                          - ...Netbooks have a clamshell design, so their screens are less likely to get scratched... - TRUE.
                          - ...Netbooks use faster processors... - TRUE.
                          - ...Netbooks can easily be "modded" with more RAM, bigger hard drive capacity, or a different operating system... - TRUE.
                          - ...With a netbook, you can get apps through other means besides iTunes... - TRUE.
                          - ...Netbooks have an Ethernet port and some have a Gigabit Ethernet. Thus, if the Wi-Fi's throughput is not enough for streaming HD video, you can always plug in a network cable... - TRUE.
                          - ...Some netbooks have both VGA-Out and HDMI-Out, without the need for a connector... - TRUE.
                          - ...You can print files from a netbook... - TRUE.
                          - ...Your netbook can run multiple browsers, so you're not stuck with Safari only... - TRUE.
                          - ...Netbooks with Nvidia's Ion chipset can support external Blu-ray drives... - TRUE."

                          Are these facts "irrelevant"? You make smile. That's good.
                          justcallmebob
                          MyCE Resident
                          Posted on: 24 Aug 10 15:37
                            Lets be reasonable . . . people who buy an iPad aren't looking for a huge processor and won't be doing much more than checking email, surfing the web, updating Facebook, etc.

                            You don't need a netbook to do that . . .
                            alex thyl
                            MyCE Resident
                            Posted on: 24 Aug 10 17:26
                              Quote:
                              Originally Posted by justcallmebob
                              Lets be reasonable . . . people who buy an iPad aren't looking for a huge processor and won't be doing much more than checking email, surfing the web, updating Facebook, etc.

                              You don't need a netbook to do that . . .

                              Nobody argues with that. The theoretical question raised in the thread was whether iPad can really kill netbook sales.

                              The posters tried to answer in that particular respect which means you can not escape a comparison of the two devices.
                              Chad_Bronson
                              MyCE Senior Member
                              Posted on: 24 Aug 10 17:39
                                Quote:
                                Originally Posted by Illuminatus
                                I am not really fond of ex cathedra statements unless they are based on facts. Let us see what is "irrelevent" (just some points out of 42):

                                "- ...Netbooks are cheaper... - TRUE.
                                - ...there is absolutely no Flash support in the iPad, we at least know netbooks have full Flash support.... - TRUE.
                                - ...Netbooks have USB ports, about two to three on average. The iPad has none... - TRUE.
                                - ...Higher Resolutions. There are several 10-inch netbooks that offer 1,366-by-768 resolutions, namely the HP Mini 5102, Dell Mini 10, and Sony VAIO VGN W-Series. The iPad tops out at 1,024 by 768.... - TRUE.
                                - ...Removable batteries. You can buy an additional battery for your netbook if you want, allowing it to last for multiple days... - TRUE.
                                - ...Every single netbook comes with a webcam for video conferencing and chats... - TRUE.
                                - ...Multiformat card readers are built into every netbook, so you can download photos and videos from your camera.... - TRUE.
                                - ...Netbooks have a clamshell design, so their screens are less likely to get scratched... - TRUE.
                                - ...Netbooks use faster processors... - TRUE.
                                - ...Netbooks can easily be "modded" with more RAM, bigger hard drive capacity, or a different operating system... - TRUE.
                                - ...With a netbook, you can get apps through other means besides iTunes... - TRUE.
                                - ...Netbooks have an Ethernet port and some have a Gigabit Ethernet. Thus, if the Wi-Fi's throughput is not enough for streaming HD video, you can always plug in a network cable... - TRUE.
                                - ...Some netbooks have both VGA-Out and HDMI-Out, without the need for a connector... - TRUE.
                                - ...You can print files from a netbook... - TRUE.
                                - ...Your netbook can run multiple browsers, so you're not stuck with Safari only... - TRUE.
                                - ...Netbooks with Nvidia's Ion chipset can support external Blu-ray drives... - TRUE."

                                Are these facts "irrelevant"?
                                Illuminatus has it dead on the nail. The reason why I would go with netbook is they are cheaper, more practical (like for example, freedom of software to choose, rather than what Apple has streamlined for you) and purely because they can be upgraded. (et al) Apple can't seem to do this, and purely because of the iPad's OS which is

                                Don't get me wrong, the iPad is a great device, but it realistically it's just not competitive enough to be deemed an netbook killer in terms of price, because you can get so much more out of a netbook. And the OS is crippled version of OS X, and lacks the escape from Apple strangehold on softeare and what you can do, but at least Windows retains Windows XP - Which something I have been using for the past 7 years. (Although with several months of experimenting with Linux OS's :P )

                                But guys... the iPad resembles nothing more than a oversized overpriced iPod touch, which is more competitavely priced and actually, dare I say, worthwhile! The question for me is, what's the point of an iPad?

                                Bottom line is - iPad =
                                Illuminatus
                                MyCE Member
                                Posted on: 24 Aug 10 18:12
                                  Quote:
                                  Originally Posted by Chad_Bronson
                                  ... the iPad resembles nothing more than a oversized overpriced iPod touch, which is more competitavely priced and actually, dare I say, worthwhile! The question for me is, what's the point of an iPad?
                                  Touché!
                                  justcallmebob
                                  MyCE Resident
                                  Posted on: 24 Aug 10 18:24
                                    iPad > iPod touch due to screen size alone . . .

                                    Some folks can't see smaller screens very well.


                                    Not saying it'll be a netbook killer, but to think that some folks who were considering a netbook won't go for the iPad is naive IMO.
                                    Illuminatus
                                    MyCE Member
                                    Posted on: 24 Aug 10 19:51
                                      Bob, nobody think that. iPad is a gadget and as such is/was bought by many. No problem.

                                      Some of us just say that "the king is naked".
                                      Chad_Bronson
                                      MyCE Senior Member
                                      Posted on: 24 Aug 10 20:02
                                        Quote:
                                        Originally Posted by Illuminatus
                                        Touché!
                                        Always nice to be loved

                                        Point being, all what the iPad can do, the iPod touch can do. The iPad offers nothing revolutionary, the accelorameter to flip the screen round, although can be either a convience or nightmare to most of us has been done and copied again and again by so many phones. Even my LG Cookie has a similar, if butchered feature of it.

                                        Nobody is denying the iPad is crap. Far from it, I liked the item, but as with anything from Apple, overhyped, upgrading features... are virtually zero, prone to Apple software and apps and JUST apple software and apps...

                                        Once you've got an iPad, your pretty much locked to Apple. Although I'm not in the race to get a netbook, I'm content with a 7 year old Windows XP PC, I would much rather get a netbook where I tell it what to do and I have basically the freedom to do what I like and not be tied down by Apple.

                                        Post your comment

                                        You need to register before you can comment

                                        Like us

                                        Most popular headlines

                                        Media Hint content unblocker becomes a paid subscription

                                        Like most DVD and Blu-ray titles, content provider websites such as NBC, RT&Eacu...

                                        Windows XP security fix hangs systems and leaves them partly unprotected

                                        An update to the Anti Malware Service for Windows XP is causing systems to slow ...

                                        Crucial M550 512GB SSD Review - Pure speed

                                        • Mon 14 Apr 04:04 by Vroom

                                        Review: Crucial M550 Reviewed by: ANTONIS SAPANIDIS Provided by: Cr...

                                        AMD to release Radeon SSDs - Powered by OCZ and Toshiba

                                        In an effort to offer a complete range of PC hardware, AMD is rumored to be work...

                                        Microsoft releases fixes for Windows 8.1 Spring Update install errors

                                        Microsoft released two patches already for users who received error codes 800700...

                                        See all headlines
                                        Follow Myce.com