No room for Windows 7

The rise of netbooks is challenging Microsoft and other companies whose high-end operating systems may not run on the portable machines, reports Visual Studio Magazine.

The popularity of netbooks, expected to increase during the global recession, has caught many hi-tech companies off guard, including Microsoft.

By the end of 2008, nine of the top 10 PC makers had entered the once-idling netbook market, pushing shipments up 160% in the third quarter year over year, according to research firm NPD Group's DisplaySearch.

Dell, HP, Acer and Lenovo all experienced a major slowdown in 2008 fourth-quarter PC shipments, although desktop and laptop shipments did grow in the past year, reports eWeek.

In addition, Apple, Dell, HP and Lenovo additionally saw declines in their average selling prices, other research shows, which may exacerbate revenue woes.

This trend among laptop and desktop suppliers mimics conditions in the mobile phone and handset markets, which saw growth in 2008 but nonetheless experienced “the lowest quarter-to-quarter growth ever recorded in a fourth quarter,” according to Gartner reports.

HP, the giant desktops and notebooks manufacturer, has set up a production unit in India for business laptops, according to itexaminer.com.

The company believes the presence in India will help it to service its sales channel and clients faster and will also provide flexibility in the Indian supply chain.

Anurag Arora, HP India country manager says, “We have recently started production of business notebooks in India. The decision is based on the huge market potential and the need to be closer to our sales channel.”