Will Netbook Ubiquity Hurt or Help Major PC Vendors?

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If netbooks popularity means products sold go into to a lower margin mix,then vendors will need to solidly managed that shift to ward off profit erosion.

The blossoming netbook or mini-PC notebook market has vendors ratcheting up efforts to capture a larger slice of the market pie. One of those top PC vendors, Hewlett-Packard, is leading the charge with respect to consumer brand recognition.

And that recognition carries power at the retail level. So it's fair to say a behemoth vendor like HP will undoubtedly be successful in the mini-notebook space but at what cost?

First, consider the question of product mix going to a lower margin mix, suggested Warren Shiau, senior associate and lead analyst, IT research, The Strategic Counsel. At one time, DVD machines used to be a source of profitability for manufacturers, he reminds us.

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