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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters You Witness News Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Netbooks take center stage at CES Sun Jan 11, 2009 1:02pm EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Gabriel Madway LAS VEGAS (Reuters) - Netbooks were everywhere and on everyone's lips at the Consumer Electronics Show in Las Vegas, expanding as a category of small laptop PCs that are rewriting the rules for the struggling computer industry. While nearly every major PC makers had a new netbook on display at the four-day show ending on Sunday, no two companies seemed to agree on what the rules are to define this segment of tiny, ultra-portable notebooks. Some netbooks are stripped-down PCs optimized for Internet use and costing a relatively affordable $300-$400. But others are fancier, like Sony Corp's $900, 8-inch device with all the bells and whistles of full-sized notebooks. It is early enough in the game -- netbooks did not take off until last year -- that their ultimate place in the PC universe is still unknown. If netbooks are, as many PC companies hope, a companion product to a traditional laptop or desktop computer, then they have discovered a new avenue to grow sales. If, however, netbooks are replacement laptops, then they would eat into the notebook market in a substantial way and pinch the margins of PC makers. Forrester analyst J.P. Gownder calls netbooks the "third form factor in the consumer PC space, in addition to laptops and desktops" and said in a research report that companies should emphasize them as a complementary product. Phil McKinney, chief technology officer for Hewlett-Packard Co's personal systems group, said the company continues to view netbooks as a companion device. "We kind of look at the minis as what we call a tweener product," he said. What is certain is that netbooks are one of the few bright spots for PC makers being punished by reduced IT spending and falling consumer demand due to the global economic slowdown. CES saw big names such as HP, Dell Inc, and Sony introduce new pint-sized models. Meanwhile, netbook pioneer Asustek showed off flashy innovations on its line-up of netbooks, including a tablet model. DEFINITION OF NETBOOK CHANGING As originally conceived, netbooks were small, lightweight, commodity PCs that offered consumers the ability to do simple tasks such as Web-surfing, email and chat at a very attractive price below that of a budget standard laptop. The first netbooks to strike a chord with consumers were models from Asustek and fellow Taiwanese PC maker Acer Inc. The two companies still hold a commanding share of the market, according to research firm DisplaySearch. But with the bigger PC players now in the netbook game, the market should get more competitive. Dell's and HP's models are generally a little pricier, but still quite affordable. Toshiba Corp is also preparing to bring a netbook to the U.S. market, said Carl Pinto, vice president of marketing for digital products at Toshiba America. He conceded that netbooks do eat into the notebook segment, but dismissed the reality. "Even if there's some cannibalization, it's still complementary," he said. Continued... 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