The recession may be eating into demand for personal computers, but at least one sector of the home-computing market is seeing huge sales growth from cost-conscious consumers.

Netbooks — stripped-down, inexpensive laptops with a fraction of the capabilities of their more expensive cousins — have grown the market for computers priced under $500 so much that the sector now accounts for 26 per cent of total computer sales during the first quarter of 2009, consulting firm NPD said Monday.

Netbook computers such as this one made by Lenovo now account for more than a quarter of all computer sales in Canada, research firm NPD says. (Jae C. Hong/Associated Press)

Canadians have purchased more than 126,000 netbooks worth some $49 million since July 2008. The average price for the devices is $390, a fraction of what top-of-the-line models from Apple and Dell might cost. But what netbooks lack in bells and whistles, they're more than making up for in raw numbers, NPD says.

"The early success of netbooks indicates that Canadian consumers have adopted these products," NPD technology director Darrel Ryce said.

"When you couple that with increased price sensitivity, it only makes sense that lower-priced, lower-functionality netbooks are seeing higher sales volumes."

Recent data shows sales of desktop computers declined by 21 per cent in the first quarter, making the growth in netbooks all the more significant. Netbooks now account for nearly two-thirds of the growth in notebook sales in Canada.

Global trend

It's a trend that's not forecast to slow any time soon.

Technology consultancy Gartner Inc. predicts worldwide sales of low-cost netbooks will double to 21 million units this year, up from 11.7 million units in 2008. That contrasts with Gartner's prediction that overall, worldwide PC shipments will decline by 11.9 per cent this year.

The typical netbook buyer purchases the unit as a mobile complement to a more powerful home computer, NPD says. But there's a growing market for netbooks among emerging market consumers who are eager for inexpensive, entry-level machines for their first-ever computers, Gartner suggests.