Acer down as notebooks take a dive -

Taiwanese giant Acer reported its sales for July and the fitures show that sales fell by 40 percent compared to June - a figure attributed to a decline in sales of notebooks.

Acer joins a number of other Taiwanese giants including Compal, Wistron, Inventec and Wistron, which have also reported declining sales.

Most observers believe that the reason for the fall is down to a combination of seasonality coupled to a surge in sales of notebooks earlier this year.

But Acer continues to be bullish about sales of notebooks in August and September and according to the Taiwan Economic News still believes it will ship 40 million notebooks by the end of this year.

There's bad news on the netbook front too - Asustek, according to Digitimes, has lowered its expectation of sales for the third quarter, and attributes that to increased sales of Apple's iPad.

However, the netbook phenomenon appears to be somewhat dented anyway, as users have realised that despite their dinky looks, the machines are underpowered for everything apart from the lightest of PC tasks.