Netbooks - is the net good enough?

Netbooks are a class of laptop computers that are small, light, and inexpensive, with reduced specifications and processing power relative to larger laptops (Wikipedia).

I loved a comment that I came across in K @ W. "Are these devices stripped down computers or phones on steroids?" is what professor Eric Clemons wondered when he discussed about Netbooks and their impact in the current economy. I concur with the thought above and truly, netbooks are somewhere between laptops and smartphones. What is worth pondering is where in the consumer market these netbooks fit in? How can they make a significant business sense? Will the netbooks increase the popularity of cloud computing? How will the key players be impacted? And many similar questions.

Netbooks, as the name explains, are heavily dependent on the internet. I wouldn't say they will replace smartphones. Not yet. That is because smartphones like iPhone have a distinct edge compared to netbooks; smartphones don't just rely on wi-fi. The fact that these phones can access internet through their telecom providers is kind of a double delight. This factor scores high in that one doesn't need to search for wi-fi spots or be within a certain range to access the internet. And cloud computing is as rampant with  smartphones as it is with netbooks. You can vpn, webex, browse, access online storage and what not with smartphones too. Hence smartphones still have an edge compared to netbooks. Netbooks make more sense in an ubiquitous internet environment.

Technology companies are pitching online storage bundled with netbooks. General perception is that netbooks market will continue growing due to the advances in cloud computing. Keeping the comparison between the smartphones and netbooks aside, there are other hurdles that could potentially bog down netbook sales. First, the current economy. While inexpensive, netbooks are kind of luxury items to purchase in this economy. Ubiquitous internet is a major hurdle. In emerging markets, this poses an even more threat to the future of netbooks. Netbooks are not convenient for everyday computing. This makes them more close to smartphones than to laptops. And given that smartphones come with many perks like camera, apps and more importantly the phone itself, users may find it beneficial to upgrade to a smartphone (read iPhone) than to a netbook.

So, though netbooks are relatively inexpensive, they still don't make a strong case. Partly, due to today's economy. And a netbook's relative utility compared to laptops or smartphones is not in its favor. But considering the speed with which technology is evolving today, it is worth waiting for the netbooks segment to make its mark.