Victory Lap: Notebooks Outsell Desktops for First Time Ever

Notebooks outsold desktops for the first time ever last business quarter. Laptops hedged out traditional PCs by 100,000 units during the third quarter of 2008, selling 38.6 million models, according to electronics market analysts at iSuppli.

Most of the credit for that outstanding laptop sales figure goes to the netbook, a bargain-priced notebook that weighs an average of 3 pounds and sacrifices some high-end features to achieve its tiny stature. The limited size and functionality of the netbook allow it to grace store shelves for under $400.

Because of the miniaturized model’s success, Taiwanese manufacturer Acer is laughing all the way to the bank — even if the netbook’s low price means the company won’t have much to deposit when it gets there.

Can't... win. The other guy's just too cheap, sir!

Acer sold nearly 3 million more laptops in quarter three than it did in quarter two, and most of them netbooks. These numbers mean Acer is well on its way to ousting Dell from its spot as the world’s #2 PC supplier (HP is #1), according to a Gizmodo article.

Naturally, the spike in laptop sales didn’t benefit everyone equally. Now, some of the manufacturers who missed the boat are accusing their more successful competitors of instigating a price war by flooding the market with low quality products.

Both HP and Dell are reportedly pretty cheesed off at how netbooks have usurped the previously desktop-dominated market. In addition to concerns about a price war – a financial battle to see who can put out the cheapest computer that still works – HP and Dell officials view netbooks as inferior technology.

“There’s no money to be made at $400,” one marketing executive said in an article on CNN Money. “Consumers might be hungry for a deal, but these are not great machines.”

And although Apple will also get slammed by this torrent of bare-bones laptops, CEO Steve Jobs appears ready to take those lumps. Jobs said he won’t compromise quality to satisfy bargain-hunters.

But gamers who are willing to make that sacrifice won’t be too disappointed. Although they lack the power to run newer titles, there is a substantial library of games the netbook can play.

Heck, even World of Warcraft will run if you tweak it right.