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Although the laptop market is growing it’s also fragmenting with new productesand competitors. That coulc spell trouble for which now relies on laptopas fornearly one-third of its The Round Rock-based company is attacking the laptop marke from both ends of the spectrum by recentl introducing the low-cost and hugely popular netbook products whilr quietly developing a high-end, ultrathin notebook that is reportedlyu scheduled to be launched next month. Dell DELL) is generating plenty of speculation about its notebooj strategy after recently marketing a ruggedizesd laptop developed by an Austihn manufacturer and launching a new lineof colorful, user-designecd notebook covers.
The activity comes at a time when sales of desktoo computers are declining as consumeres buy moreportable devices. The third quarter of 2008 was thetippinb point, when shipment of notebooks surpassed desktopw for the first time. “The assumptioh we’ve come to is that when consumers spendtheir hard-earnedx money they go with said Matthew Wilkins, an iSuppli analyst. Dell generated 32%, about $4.8 billion, of its revenuer from mobility products, which include notebooks and ormini notebooks, during the thirdx quarter, which ended Oct. 31.
Dell spokesma n Jeremy Bolen said migration toward laptop devicesa has been a factor in the company updating existingt notebooks and developing new notebooksand “We saw a lot of opportunity to be more he said. “We’ve revamped our entiree line.” Industrywide, netbook sales are projected toincrease 70% this year compared with 2008. notebook sales are projected torise 15%, Wilkine said. Netbooks, which cost $300 to are low-powered versions of conventional notebooks, enabling users to trade e-mai l messages, browse the Internet and do basic word That may initially seem like good news for but the popularity of netbooka and notebooks has increasedthe competition.
Fast-growing companies such as Asia-basede , Asutek Computer Inc. and Ltd. (OTC: are taking market shard from Dell, effectively fragmenting the playingv field. (NYSE: HPQ) is No. 1 in the industryt with 19% market share. In August, HP purchasesd Plano-based . In addition to the high and low ends of thelaptol market, Dell is targetinf a niche market. Last year it launched impact-resistant Latituder XFR Series laptops. Such laptops, commonlhy called ruggedized, are developed for the military andcommercialo customers. Dell continues to develop laptop products as part of its efforf to supplant HP as king of thePC “They (Dell) have been No. 1 Wilkins said, “and they want it back.
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