The Rise of Netbooks: Can an Inexpensive PC Category Change Your Buying Habits?

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They're called "netbooks" and they're cheap. Computer manufacturers are slowly rolling out inexpensive laptops that have been stripped down to offer the bare essentials for average Web users. With low price tags, can netbooks take over?

Digital Journal -- As if your computer buying decisions weren't complicated enough, a new category of portable PCs has been introduced and they have the potential to spin the tables in the computer market.

The netbook or "nettop" is the emerging category, loaded with low-cost computers with stripped down features. The idea here is to attract consumers to the laptop category without scaring them away with traditional laptop prices. This is a big win for consumers.

Nettops can range anywhere from $250 to $500. Asus has a 9-inch model called Eee PC (a 9-inch computer selling for about $250 USD); Dell says it's getting into the nettop market (no pricing info known yet); and HP sells the 2133, a notebook designed for the education market ($499 USD).

There are some notable drawbacks about this new category of computer, namely that many compact computers come with tiny keyboards that are frustrating for anyone who types faster than 10 words per minute. Small screens also mean small text, so this computer category is not for everyone.

However, with price tags being trimmed below $500, there is a lot of potential for growth in this category. As wireless Internet usage continues to grow in many markets all over the world, the draw of being unshackled from a desktop computer is all too luring for many Webaholics.

The category also targets the massive middle ground, meaning it's a mainstream option that doesn't focus on hardcore gamers or graphic-intensive users. Instead, the category will likely be most attractive to mobile office workers, moms and pops, university students and, overall, your average everyday users. There is also the growing market of users in the developing world that could really boost the growth of this computer category.

It's not clear whether Netbooks will replace laptops or desktops, and many critics would say it's simply not going to happen. However, it's an industry trend worth watching.

The rise of netbooks reminds me of the growth of the digital camera market, starting out as expensive luxury items and coming down in price to be quite affordable for the average person.

If this plays out in the laptop industry, it would create an ideal situation for a consumer because it forces PC companies to continue to lower prices and offer quality in order to gain market share. However, from a manufacturing standpoint, it has the potential to lower profit margins to a point where companies are gasping for financial air.

What do you think: Does the netbook sound attractive to you, or do you plan to stick with a desktop or higher-end notebook PC?