The mini notebook, or netbook as it is referred to in China, was one of the hilights in China’s PC market in 2008. In the fourth quarter, sales volume passed the 300,000 unit mark. At the beginning of the year, ASUS netbooks were the only ones available in the market, but now 15 other PC makers including Lenovo, HP, Dell, Acer China, FounderTech and Tsinghua Tongfang have introduced their own models. IDC estimates that 1.9 million netbooks will be sold in China this year. Netbook has become a major force in China’s PC market, and its ultra-mobility is gaining immense popularity among consumers.

Netbook users tend to have general demands for office work and learning activities, but they demand comprehensive net applications. They are also demanding mobility and portability. These consumers are rather young on average, mainly students and females. As a result, the products need to feature fashionable designs and relatively low prices. The screen sizes now available include the 7-inch, 8.9-inch, 10-inch, 11-inch and 12-inch products. So far this year, demand for netbooks remains strong, and wider demand is expected to develop in the education, banking and securities, postal service and government sectors.

Netbooks are finding their markets in economically developed provinces where the consumption standards are relatively high: Guangdong, Beijing, Shanghai, Jiangsu, Zhejiang, Shandong and Sichuan were ranked among the top six in terms of sales, accounting for almost 65% of the market. But the market is expanding to smaller cities and rural areas.

The units priced between RMB3,000 (US$438) to RMB3,600 (US$526) are the best sellers. The estimated average retail price this year is RMB3,615 (US$528). Given the rapidly growing market, the average price will likely drop by 5-6% each year.

Most netbooks are currently sold in retail stores (about 70%), and through online direct-to-customer stores such as the Lenovo store on Taobao.com and TV shopping channels. Combined, they account for 18% of total sales, and are anticipated to contribute more in the future. Companies like ASUS will also try to sell netbooks through digital product distribution channels.