China's Netbook Market Faces Unique Challenges

China's netbook market offers high margins that no PC or CE vendor wants to miss. However, the market is not as big as it first seems, due to a few factors, reports In-Stat http://www.in-stat.com. First, 3G network capacity for data access remains limited. Second, Intel wants to limit market development in order to protect its notebook market. The chipmaker has also launched its latest ultra-low voltage (ULV) platform, which will further overlap the netbook market space.

Future market trends for netbooks in China remain unclear. The result may be that the netbook ends up being a transitional product.

Netbooks are smaller laptop computers, usually with an 8- to 12-inch screen, and are designed for wireless communications and Internet access.

Recent research by In-Stat found the following:

• In-Stat estimates that TD-SCDMA subscribers will number less than five million by 2011, indicating limited space for end-device market growth.

• A total of 2.46 million netbooks will be shipped in China this year, more than half via telco channels.

• China Mobile is offering 3 levels of promotional netbook price subsidies.  However, In-Stat expects operators to decrease operator subsidies over the next three years.

• Vendors including Samsung and Freescale, have introduced ARM-based solutions targeting Shanzhai (cloned) netbook vendors who have been unable to get Atom chipsets from Intel.

This Market Alert is drawn from the In-Stat research,  China's Netbook Market: Not as Big as It Looks (#IN0904610CWW), which covers the Chinese market for netbook computers. It includes:

• China's netbook market forecast through 2013.
• Analysis of China Mobile's, China Unicom's, and China Telecom's subscriber and network growth plans, and their promotion of netbooks.
• Examination of the netbook value chain.
• Analysis of key player strategies in chipsets and operating systems: Google Chrome, Google Android and RedFlag Linux.
• Profiles of end-device makers: Lenovo, Dell, HP, and Tsinghua Tongfang.

  For a free sample of the report and more information, please contact a sales representative: http://www.instat.com/sales.aspTo purchase it online, please visit: http://www.instat.com/catalog/apcatalogue.asp?id=279

  The price is $3,495 (US).

  This research is part of In-Stat's China Wireless service, which provides insight into the technologies, consumer requirements, devices, applications, and business models of the world's fastest growing economy and mobile market.

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  More Information on this Research Title: China's Netbook Market: Not as Big as It Looks Service: China Wireless Product Number: IN0904610CWW Publication Date: September 2009 Number of Pages: 38 Price: $3,495 USD Abstract, Table of Contents, Figures & Tables Members Only: Full text HTML, PDF Contact a Sales Representative Purchase Online Now Sign up to receive email Market Alerts on this, and related topic

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