I was interviewed by Kelli Grant from SmartMoney.com for this piece on netbooks and it got me thinking.
For some reason, netbooks are still being marketed as a laptop alternative. A year ago, this would have been accurate. Today, with increased screen sizes, hard drives and RAM memory, netbooks are not alternatives to anything. Netbooks are consumer laptops.
They’re more than sufficient for what most consumers do with a computer: Web browsing, email, photos and music. They’re ultra portable, wildly affordable, and gaining buzz-traction in the mainstream media. A good percentage of consumers (I’d guesstimate at least half) know what a netbook is. Most importantly, in our current environment, the price isn’t just right, the price is perfect.
All this considered, I would argue that in the last several years, the netbook has been the best new development to come out of the consumer electronics industry.
Which makes a logical person ask: why aren’t you marketing netbooks as category leaders? Most manufacturers still lead with larger, more expensive laptops. I’m pretty sure I know the answer: the less expensive netbooks are much less profitable than larger laptops. This is true, but the larger, more expensive laptop (over $1,000) has always been more difficult to sell to consumers. (And I’m talking moms, dads, granparents — this is who I always talk about.) It’s hard to make a case that mom needs a desktop replacement notebook. But it’s easy to tell mom that a $350 netbook will change her life.
Lead with netbooks, position them as your lead computer (not lead notebook, but lead computer). The larger notebooks are now the alternatives to netbooks.
I know this doesn’t sound particularly attractive from a profits perspective, but consider this: nearly every consumer has a cell phone, and netbooks may well be the next cell phone. Then, you’ll make up with volume what is lost with lower netbook margins.
Make them the next cell phone.
Netbook Language: Easy. Convenient. Wildly affordable. Ultra portable. There’s no excuse not to have one (given the price and features).
I’ve been considering a small netbook might replace the need for a smart phones as well. My laptop is too big to lug around and I think the ergonomics of smart phones are terrible. Netbooks seem to be a viable alternative. It could be the laptop is becoming a desktop. What do you think?
Dave:
I don’t think netbooks are a good replacement for smart phones, despite the wireless carriers offering up all kinds of plans for them. If you want to switch “down” to a smaller phone, and “up” to a netbook, that may work, but now you’re replacing one device with two. Netbooks should be our next laptop, but probably not our next smart phone.
AG
Where would I find the netbook featured on yesterday’s KATU.com ? Is it called ACET? Do you have any product info? Thank you!