Laptops on Top & Towers Losing Power
Since inception, desktop – or tower – computers easily outsold laptops – or notebooks. In the past, notebooks were expensive and were targeted more toward business-end users. In recent years though, things have drastically changed. Look around at schools, colleges, airports, coffee shops, or in public places. You’ll notice many more laptops now compared to just a few years ago.
To prove this, during 2008, laptops surpassed towers in sales for the first time. Not only that, tower shipments actually fell during the same period. According to iSuppli.com (same information reported in Business Week and through ZD Net Asia), this was a ‘watershed event in the history of the industry’:
“Global notebook PC shipments exceeded those of desktops on a quarterly basis for the first time ever in the third quarter, marking a watershed event in the history of the industry.
Notebook PC shipments rose almost 40 percent in the third quarter of 2008 compared to the same period of 2007 to reach 38.6 million units. Conversely, desktop PC shipments declined by 1.3 percent for the same period to 38.5 million units.”
With laptop prices dropping, they are now targeted to many more marketing segments. As iSuppli.com also reports, “This marks a major event in the PC market because it marks the start of the age of the notebook. The notebook PC is no longer a tool only for the business market, or a computer for the well-off consumer; it’s now a computer for (all).”
Search online to view current prices of notebook computers. You’ll notice prices are much lower than a few years ago and even lower than last year. A notebook that used to cost consumers around $1,500 or more can now be purchased for less than $1,000. In many cases, laptops with good specs with ample computing power and speed can be purchased for $500 or less. Moreover, I have seen many ads with basic laptop specs in the $300 to $400 range.
Two primary factors have led to this shift. First, with dramatic reductions in the cost of manufacturing notebooks, firms have passed these savings and features along to consumers. Second, the notebook market is highly competitive which is also driving prices lower. This is more evident if you look at Sony’s notebook market share. With Sony selling its units at a higher price point, the company has seen its market share DECREASE.
So, which companies sell the most laptops? According to a Business Week article dated December 24, 2008 by Vivian Yeo, and through NotebookReview.com, the top notebook sellers and market shares through 2008 are listed below:
Notebook Manufacturer Market Share
- Hewlett Packard (HP) 18.8%
- Dell 13.9%
- Acer 12.4%
- Lenovo 7.5%
- Toshiba 4.6%
- ASUS 4.2%
- Apple 3.2%
Hewlett Packard has maintained its lead, with Acer experiencing the fastest growth. Conversely, Toshiba’s share has slipped. Although not listed above, Sony computers fell from #6 previously to #9 in 2008. Many analysts attribute that decline to Acer and Lenovo gains. Additionally, Sony prices are more expensive, and this along with the recent economic events has led more consumers to by-pass Sony for more price competitive manufacturers.
With lower prices and portability still the greatest selling point for notebooks, the positive sales trend is expected to continue. Although the US economy may see sales stall a bit early on in 2009, notebook sales should regain strength in the latter half of this year.
So, are you currently a laptop/notebook owner? If not, now may be the best time to purchase one. Manufacturers are in a race for market share. Plus, with the US economy in decline, incentives to sell more computers are in full gear. If you would like a list of standard notebook specs to look for when purchasing, please feel free to contact me at kparrett@hotmail.com.
Happy Computing!
