Intel having second thoughts about netbooks

Intel vice president of sales and marketing Stu Pann said at a recent Raymond James IT Supply Chain Conference that Intel is having second thoughts about the netbook. Pann states netbooks were originally designed with emerging markets and young kids in mind, but in reality most netbook buyers are people from Western Europe or North America who just want to grab and go with a notebook.

He explains netbooks or good for an hour and aren't designed for day in and day out use, but perhaps the real reason why he's complaining could be because Intel may be starting to realize that netbooks aren't adding a lot to their bottom-line because they may be cannibalizing the sales of more expensive products with higher margins?

"We originally thought Netbooks would be for emerging markets and younger kids, and there is some of that. It turns out the bulk of the Netbooks sold today are Western Europe, North America, and for people who just want to grab and go with a notebook," Pann said. "We view the Netbook as mostly incremental to our total available market," he added.

And the most revealing statement? "If you've ever used a Netbook and used a 10-inch screen size--it's fine for an hour. It's not something you're going to use day in and day out."

Though this may simply reaffirm some people's view of the Netbook, it may also be surprising to others who thought the Netbook was potentially a laptop replacement for highly mobile users looking for a lightweight design. Or at least a design that was bearable beyond one hour.