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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 Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Intel sees no first-time PC buyers for netbooks Wed Jul 29, 2009 3:55pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Clare Baldwin and Poornima Gupta SAN FRANCISCO (Reuters) - Intel Corp said on Wednesday it no longer expects netbooks to appeal to first-time computer buyers, but sees continued sales of the ultra-portable laptops as a secondary machine or a durable option for kids. "I don't think first-time buyers are going to buy netbooks," Sean Maloney, Intel's general manager of sales and marketing, said at a media event organized by the company. "The first time you buy something you want the real deal. It's consistent not just in China, but all around the world." "If you're going to spend your hard-earned money for the first time, you're going to put a computer in your house," he said. Maloney said he doesn't see that trend changing any time soon. Netbooks, so far, have sold most frequently to people who already own one or two PCs, Maloney said, but added that 7- to 11-year-old children are still a "massive underserved demographic." Intel, the world's largest chipmaker, has cornered the fast-growing market for inexpensive netbooks, made for simple functions such as surfing the Web, with its "Atom" processors. Earlier this month the company said second-quarter revenue for Atom processors and chipsets spiked 65 percent from the first quarter to $362 million. Sales of chips for laptops rose 16.7 percent in the second quarter. Atom-based netbooks have been wildly popular among consumers and analysts have questioned whether the small, laptop PCs will cannibalize sales of more expensive, full-function laptops. Intel has said earlier it aimed to introduce new people to computing through its low-cost netbooks, particularly in emerging markets, as well as drive sales to people looking for a second machine. Maloney said netbooks, which the company launched in late 2007 with Taiwan's Asustek, are now "well established" in global markets. "There is a new category established. That category is, to an extent, maturing," he said. "It is not so much in the early phases." NON-U.S. MARKETS In wide-ranging remarks, Maloney said that while the U.S. economy is still in recession, some of the company's overseas markets, such as India and Brazil, were improving. "If you are dependent on the U.S. consumer, or U.S. business alone, obviously you are in one box," he said. "If you are global, you're in another." Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Sony plugs Google's library into e-readers Also on Reuters Commentary: Fed volunteers to burst bubble Starbucks and McDonald's carve coffee niches House husbands go for TV glory in new U.S. show More Technology News Microsoft and Yahoo strike Web search partnership | Video Lawmaker urges regulations for file-sharing Waking up is getting serious on smartphones Sony plugs Google's library into e-readers Niche social sites seek growth under Facebook's shadow More Technology News... Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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