Taiwan-based netbook brand vendors including Asustek Computer and Acer are both dropping their netbook prices to defend from the assault of tablet PCs. Close to 90% of netbook models available in retail channels have already seen their prices drop below NT$10,000 (US$345), according to sources from channel retailers.
Thanks primarily to the iPad, we can soon expect cheaper netbooks by Asus and Acer. We’re talking really cheap at less than $250. Although the US$499 starting price of the iPad 2 is a big factor, the surrounding app infrastructure, the sheer simplicity of the industrial design and iOS UI are equally important. Netbooks that are cheaper will not likely impact stunt the growth of tablets. What netbook manufacturers need to do instead is completely differentiate netbooks from tablets.