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Taiwan market: Netbook sales through 3G carriers to drop 20% sequentially in 4Q09

Netbook sales through bundling with 3G services in Taiwan are expected to drop more than 20% sequentially in the fourth quarter of 2009 due to the rapid drop in netbook retail prices, according to sources from netbook players.

Netbook sales through telecom channels were about 15,000 units in the third quarter of 2009 and are expected to drop to 12,000 units in the fourth, the sources noted.

Since 3G carriers' current subsidy for netbooks in Taiwan is around NT$3,000-4,000, only half of the amount they subsidized when they first began selling through telecom channels, the sales model is becoming less attractive for consumers.

Although Intel Atom N450-based netbooks are set to appear in the first quarter of 2010, the sources believe the new platform is unlikely to help boost ASPs and new models will still be priced at around NT$10,000-15,000.

The idea of selling ultra-thin notebooks bundled with 3G services is also facing obstacles as consumers are less confident about the price/performance ratio and are more willing to purchase related products through traditional retail channels, where they have more choice and can gather more pre-sale information about the products, the sources added.

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