HP and Dell cutting back on 10-inch netbook investments?

Netbooks have been growing at a very fast pace over the last few years. The growth of the segment boomed last year with the economy doing so poorly and many consumers opted to buy the cheap netbooks rather than full notebooks.DigiTimes reports that HP and Dell are reducing the investment in their respective netbooks according to sources. These sources told DigiTimes that both the computer makers are reducing investment in the 10-inch netbook segment.

HP is said to be considering taking things a step further and completely vacating the 10-inch netbook market and focusing on the 11.6-inch notebook market using AMD processors. The 10-inch netbook realm has become a commodity market for the most part with machines that are virtually identical and price is the only major differentiator between machines. DigiTimes reports that Acer, Asus, and Samsung are remaining active in the 10-inch netbook market.