Netbooks have been gaining a larger share within the laptop market, but is this necessarily a good thing for the industry as a whole?
Not necessarily. These units tend to be much cheaper than notebooks and are bringing down overall revenues for the laptop market. According to market research firm DisplaySearch, in the second quarter of 2009, the portable PC market was worth $26.4 billion. Even though there has been growth in netbook revenue (264% more than a year ago if you were curious), some may argue that netbook cannibalization has lead to an overall decline in revenues.

The relatively low price of netbooks has also contributed to the falling price of laptops. The average selling price for a notebook in the second quarter of 2009 was $688, which is 19% lower than a year ago.
Netbooks currently have 11.7% of the portable PC market. In 2010, DisplaySearch expects netbooks to account for 21.5% of the portable PC market and netbook sales to account for 10.9% of revenues within the industry.
Via InformationWeek.