Acer’s Q2 Results Show the Rising Impact of Netbook Cannibalization

While netbook sales have been rising, this is not necessarily good news for other segments of the notebook market.

In fact, for some companies, such as Acer, the rise in netbook sales has resulted in overall losses, which shows that low-cost netbooks are cannibalizing the company’s more expensive products and that a consumer-driven focus is indeed risky.

Netbooks play a major factor in the overall falling prices of computing devices and are not as profitable as other computing technology, such as laptops and desktops. For Acer specifically, the profit from selling a notebook is six times that from selling a netbook.

Currently, Acer is a leader in netbook manufacturing and sales, and market research firm IDC expects the company’s shipments to rise roughly 127% this year. Acer itself predicts that shipments in the second half of 2009 will jump 40% from the previous half.

Via Reuters.

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