Netbooks Killing Windows PC Sales

PC sales are in free fall as the weak demand for Windows desktops and full-size notebooks in a poorly performing global economy is being compounded by an influx of low cost netbooks, which are gobbling up the remains of profitability in the PC industry.

According to an IDC report issued last week, worldwide PC processor unit shipments in the fourth quarter of 2008 declined –17.0% quarter over quarter and –11.4% year over year. Those tragic numbers were buoyed somewhat by sales of mini-laptop netbooks running low powered processors. Take out Intel's Atom chips that power netbooks, and processor unit shipments declined by –21.7% over the previous September quarter and –21.6% over last year's holiday quarter.

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