Despite the boom in low-cost netbooks in recent years thanks to the poor economy and cash-strapped consumers, a recent Digitimes article reports that HP and Dell are actually reducing their investments in the 10-inch netbook market. In fact, HP is considering quitting the 10-inch segment altogether to focus on its 11.6-inch AMD notebooks as the Intel Pine Trail netbooks have not been very profitable.
This is due largely to the fact that there is too much competition in this market where price is the only significant differentiator. For the time being, Acer, Asus, and Samsung have no intention to follow suit as netbooks still account for a large portion of their sales.