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The netbook PC market reached $26.4 billion in the second quarter of 2009, which is a 10% quarter-to-quarter increase but 5% year-to-year decrease, according to DisplaySearch’s New Advanced Quarterly Notebook PC Report. However, mini-netbooks saw a 37% quarter-to-quarter increase in revenue and a 264% increase year to year. This strong growth grove their revenue share of the portable computer market to 11.7% in the second quarter of 2009.

The average selling prices (ASPs) for mini-notes dropped almost 30% year to year, compared to a 10% decline for notebooks. However, mini-notes achieved their substantial revenue growth due to more than 360% year-to-year unit growth. This increase in shipments also drove mini-notes to capture 22.2% of portable PC shipments in the second quarter of 2009. 

According to DisplaySearch, their low prices make mini-notes attractive to consumers who want a secondary PC for the home. They’re also affordable for first-time PC buyers in emerging markets who are less likely to require all of the features available on larger mainstream notebook PCs.

Also, the low ASPs make mini-notes attractive to telecom providers in every region. Telecom providers hope to boost revenues by offering subsidized mini-notes when customers sign two-year data plan contracts. In North America, cable TV providers are offering mini-notes to entice consumers to sign up for service packages as well.

“For 2009, we expect continued ASP erosion across all portable computer categories, leading to the first year-to-year decline of portable computer revenue,” said John F. Jacobs, director of notebook market research with DisplaySearch. The company also expects these revenue and shipment trends to continue into 2010, with mini-notes accounting for 21.5% of shipment volume but just 10.9% of the total revenue for the portable computer market in 2010.