DigiTimes is reporting that both Dell and HP are scaling back their 10-inch netbook offerings due to shrinking profit margins. HP could go as far as stopping to offer 10-inch netbooks completely. Instead HP could turn its attention to AMD-based 11.6-inch notebooks where profits are higher.
Meanwhile, Acer, Asustek Computer and Samsung Electronics all appear set to continue to offer 10-inch netbooks.
Digitimes’s sources also suggested that the cooling netbook market could deter manufacturers from entering the smartbook market, another low-price segment.