R.I.P. Netbook, the Underpowered, Slow, Clunky Future of Computing.

Innovation, the Internet, gadgets, and more.
Jan. 2 2013 5:58 PM

Apple Killed the Netbook

And we’re all better off for the demise of the $400 future of computing.

UBIsurfer netbook laptop computer
A netbook, the computing fad that made no sense

SAJJAD HUSSAIN/AFP/Getty Images.

Netbooks are dead. Good riddance! Just a few years ago, these small, underpowered, ultracheap laptops were considered the future of the computer industry. In 2008 and 2009, recession-strapped consumers around the world began snapping up netbooks in droves. They became the fastest-growing segment of the PC market, and some wild-eyed analysts were suggesting that netbook sales would soon eclipse those of desktops and regular laptops combined. That didn’t happen. Over the past couple years the netbook market crashed. Now, as Charles Arthur reports in the Guardian, most major PC manufacturers have stopped making these tiny machines. The last holdouts were the Taiwanese firms Acer and Asus. Both say they won’t build any netbooks in 2013.

What killed the netbook? Arthur’s smart piece offers three plausible suspects: First, PC makers began making better, cheaper laptops, which made for stronger competition against netbooks. Second, PC makers discovered that netbooks were a terrible business—after paying Microsoft a licensing fee for Windows, manufacturers weren’t making any money on very cheap computers. And finally, there was the rise of tablets; once machines like the iPad came along, people lost interest in $400 netbooks.

These are all plausible theories, but I think Arthur is a bit too reluctant to tie the whole story together and issue a blistering indictment against the netbook’s assassin. If you study the PC industry over the past five years, you find only one company that had the means, motive, and opportunity. Apple killed the netbook, more or less single-handedly, and we should all be grateful for it.

Advertisement

Netbooks were terrible machines, a technological blight that threatened to become the future of computing. They had awful, nearly unusable keyboards, very slow processors, and they ran versions of Windows or Linux that were a trudge to use on tiny screens. Yet despite their awfulness, they were embraced by the world’s largest tech firms—Intel, Microsoft, HP, Dell, and Lenovo were all gaga for them.

Apple alone stood against the tide of netbooks. Apple’s brilliant insight was that despite netbooks’ popularity, nobody really wanted a netbook per se. Instead, Apple realized that people who were buying netbooks were looking for one of two things—they wanted full-fledged laptops that were very portable, or they wanted cheap machines that allowed them to easily surf the Web, use email and do other light computing tasks. Rather than building a single netbook that fit both these audiences poorly, Apple built two machines that were, each in its own way, much better than any netbook ever sold.

In 2008, Apple launched the expensive but very portable MacBook Air, and then in 2010, it put out the cheap but capable iPad. Neither was a direct substitute for the netbook. But consumers immediately recognized their utility—and quickly abandoned netbooks. The iPad and the Air became the blueprints for the rest of the industry, with every other PC manufacturer now making similarly thin laptops and touchscreen tablets. Thus, thanks to Apple—and Apple alone—we were all saved from the rise of terrible tiny machines.

It’s difficult, now, to appreciate how courageous Apple’s refusal to join the netbook parade once was. In 2008, its cheapest laptop sold for more than $1,000. This was crazy expensive in the midst of a global recession, and investors and analysts were hounding the company to lower its prices. Apple’s stock price sank to less than $100.

But Apple had two reasons for holding steady against netbooks. One was noble: Shrinking a laptop to the size of netbooks—which typically had 7- or 9-inch screens and very slow Intel Atom processors—made for an inherently inferior computing experience. At that size, pointing devices and keyboards became very annoying to use, and operating systems designed for systems with more power worked like molasses. In other words, netbooks sucked, and Apple didn’t want to make computers that sucked. As Steve Jobs told investors in 2008, “We don't know how to make a $500 computer that's not a piece of junk. Our DNA will not let us do that.”

The second reason Apple didn’t make a netbook was that it couldn’t make a netbook. The principal difference between Apple and most other tech manufacturers is that Apple prizes profits over market share. Sure, Apple, like all companies, wants to sell a lot of widgets—but given a choice between making $10 billion by capturing 10 percent of the market or $1 billion by capturing 90 percent of the market, Apple will always choose money over sales. (You’d think this was obvious; don’t all companies want to make money? Nope: Apple sells fewer PCs than most other companies, but makes much more money doing so than all of its rivals.)

TODAY IN SLATE

Foreigners

More Than Scottish Pride

Scotland’s referendum isn’t about nationalism. It’s about a system that failed, and a new generation looking to take a chance on itself. 

What Charles Barkley Gets Wrong About Corporal Punishment and Black Culture

Why Greenland’s “Dark Snow” Should Worry You

If You’re Outraged by the NFL, Follow This Satirical Blowhard on Twitter

The Best Way to Organize Your Fridge

Politics

The GOP’s Focus on Fake Problems

Why candidates like Scott Walker are building campaigns on drug tests for the poor and voter ID laws.

Sports Nut

Giving Up on Goodell

How the NFL lost the trust of its most loyal reporters.

Is It Worth Paying Full Price for the iPhone 6 to Keep Your Unlimited Data Plan? We Crunch the Numbers.

Farewell! Emily Bazelon on What She Will Miss About Slate.

  News & Politics
Weigel
Sept. 16 2014 7:03 PM Kansas Secretary of State Loses Battle to Protect Senator From Tough Race
  Business
Moneybox
Sept. 16 2014 4:16 PM The iPhone 6 Marks a Fresh Chance for Wireless Carriers to Kill Your Unlimited Data
  Life
The Eye
Sept. 16 2014 12:20 PM These Outdoor Cat Shelters Have More Style Than the Average Home
  Double X
The XX Factor
Sept. 15 2014 3:31 PM My Year As an Abortion Doula
  Slate Plus
Slate Plus Video
Sept. 16 2014 2:06 PM A Farewell From Emily Bazelon The former senior editor talks about her very first Slate pitch and says goodbye to the magazine.
  Arts
Brow Beat
Sept. 16 2014 8:43 PM This 17-Minute Tribute to David Fincher Is the Perfect Preparation for Gone Girl
  Technology
Future Tense
Sept. 16 2014 6:40 PM This iPhone 6 Feature Will Change Weather Forecasting
  Health & Science
Science
Sept. 16 2014 4:09 PM It’s All Connected What links creativity, conspiracy theories, and delusions? A phenomenon called apophenia.
  Sports
Sports Nut
Sept. 15 2014 9:05 PM Giving Up on Goodell How the NFL lost the trust of its most loyal reporters.