2007 brings a larger market share for notebooks than for desktops

Dec 21, 2006 09:47 GMT  ·  By

In the last years, notebooks grew in our hearts but also on our pockets. Starting with a small market share, notebooks began to sell better and at the same time their price started to decrease. Recent technological breakthroughs made possible for the notebooks to become smaller, more energy efficient and more powerful. And because LiIon batteries started to replace the older and heavier NiCd/NiMH ones, the laptops also lost a significant amount of weight. At the moment, you can find a basic portable that will set you back about $400. Of course, it won't run FEAR or 3DMark2006 but you can run all the applications you need on such a system. Regarding the market increase, eWeek reports:

"By the end of 2006, the estimated percentage of revenue for companies from desktops will be 47 percent, compared to 41.6 percent for notebooks. For 2007, the numbers will nearly flip, with 45.6 percent of revenue coming from notebooks and 43.1 percent from desktops, according to Farmer's estimates. Later, in 2008, notebooks will represent nearly 50 percent of revenue, while desktops will produce only about 40 percent of revenue."

The increase of laptop sales is partially related to the increase in the price of desktops. Whereas the average desktop computer in 2007 is expected to cost $767, the average notebook will cost nearly $1,100. And for $400 more, you can carry the PC with you. Not a bad deal for the difference. Moreover, the sales mix for notebook computers has nearly doubled from 18.7% in 2000 to 36% in 2006. That number is expected to grow to 44% in the next two years.

Big portable manufacturers like Dell and HP have gained a lot in the last two years from the laptop sales. HP has seen its revenue from notebooks increase by 24% in the end of 2006 while the desktop revenue has remained flat on the same time segment. Likewise, Dell has seen a 17% increase in revenue for notebooks and only a 5% increase for desktops in the 4th quarter of 2006. Regarding this issue, Charles King of Pund-IT Research stated:

"I agree that there has been a real shift toward mobile computing and that shift really started in 2002. You have had a broadening of wireless Internet hotspots and that there has also been a group of professionals who have really turned to mobile computing. If the 1990s were the decade of the cell phone, then I think we are now in the decade of the notebook. In public spaces, from airports to hockey rinks, you see people typing away."