Notebooks’ are getting only cheaper

December 5, 2008

Notebooks have got cheaper and cheaper and are set to kill the desktops gradually. But will the notebooks become more cheaper now with the global economy slowdown ?

Notebook manufacturers, distributors and component suppliers in the U.S. and Asia are reporting weak demand and order cancellations. Well the market situation can be enough reason for manufactures bring down the prices once again.

Notebooks have gained enormous popularity and acceptance over the years over the desktops due to its maneuverability, advancements in chip design has helped in increasing backup time and storage capacities, and ofcourse the falling prices due to higher demand and competition. Infact much of the credit for making the Notebook popular belongs the advancement in chip design.

Senior chip analyst JoAnne Feeney, was quoted stating “Clearly the economic slowdown is spreading to notebooks and we’re seeing it in two ways, one is in lower unit shipments, but also a mixed shift to cheaper units. And that’s going to filter down through the semiconductor world.”

Its no wonder that the notebook sales have become more critical to the health of chipmakers, as they make up a larger and larger portion of PC sales every year. Feeney expects fourth-quarter shipments of semiconductors for notebooks to fall 5 percent to 10 percent from the previous quarter, compared with a previous forecast for an increase of 10 percent to 15 percent.

Analysts also expect Intel Corp, the world’s biggest chipmaker, to cut prices to compete with rival Advanced Micro Devices Inc as demand shifts to lower-cost notebooks.

How competitive the notebook market has become can be guessed from the fact that most manufacturers today offer a notebook at below 30K. The Lenovo recently launched seven notebooks with a starting price of just Rs23 K.

Hope we can seen more notebooks below 20k in the near future.