Wednesday, April 20, 2011

The netbook is stagnating, according to figures from Intel

Intel's quarterly earnings surpassed analysts' expectations, mainly due to exceptional sales of Xeon. The figures also show that the netbook market is also in a very difficult situation. The first quarter of fiscal smelter resulted in a turnover of 12.9 billion (approx. EUR 9 billion), representing an increase of 12% over last quarter 2010 and 25% by over the same period last year.

Its profits are also rising. They reach $ 3.3 billion (approx. 2.3 billion euros) or 3% from the fourth quarter of 2010 and +37% versus the first quarter of 2010. The firm has generated more than $ 4 billion in cash (approx. 2.80 billion euros). The results were largely drawn from the top thanks to strong sales of processors for data center (+32% of sales) and enterprise systems.

It is a very lucrative market, and Intel Xeon enjoys an interesting catalog. Atom sales by cons have known that an increase of 4% a year on year to reach a turnover of 370 million (approx. EUR 257 million). It becomes obvious that the market for netbooks and nettops saturates. By comparison, revenue from PC processors increased 17% while it is historically an area with a much older penetration rate much higher.

Concretely, this means that the PC, which is a product that is already in a majority of homes sales has more dynamic than those of the netbooks that are much less present, but no longer seem to attract the crowds. In other words, netbooks seem to be out of breath. To say that this market is "cannibalized" by the shelves, as can be read regularly on the Web, there is not that we do not cross it.

It is too early to draw such a conclusion remains speculative, because it does not say that the netbook was not just a fad or is simply not replaced by new ultraportable purposes generations instead of shelves. One thing seems certain, however for Intel. It is imperative for the firm to take over the smartphone sector or tablets can only continue to grow significantly the revenue generated by the Atom.

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