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Google Chromebook Sales Is A Serious Threat To Apple, Microsoft

Given the huge popularity and rapid growth in the tablet market, it is easy to overlook the fact that it is still possible to buy laptops and notebooks! Every single vaguely technology-related television commercial seems to feature people using tablets to surf the 'net and purchase products, but for many people a tablet computer doesn't really serve their needs and actually has no real purpose for them.

Google Chromebook

Originally, laptops and notebooks came to the fore because they offered the functionality of a desktop machine, with the convenience of a mobile device. Today, perhaps notebooks don't look quite so mobile next to a tablet or, obviously, a smartphone, and they certainly don't carry that all-important street cachet which can dictate the future of any form of technology.

But there is still a place in the computing marketplace for notebooks, particularly for those people who need to do work on the go, and require a stable keyboard in order to do it. While tablets offer the ability to connect keyboards via Bluetooth, this is often inconvenient and can be considered a poor substitute to a dedicated keyboard.

Surge in Google's Chromebook sales

The desire of consumers to still buy into notebook technology has been demonstrated by the commercial success of a machine that has perhaps been discounted to some extent by the big players in the mobile market. Google Inc (GOOG - Get Report)'s Chromebook enjoyed a surge in sales over the last year, and has seriously eaten into Microsoft's market share. Google now accounts for 21% of notebook sales in the US, and its Chromebooks comprise 10% of all computer and tablet sales, no mean feat for a device that many had written off.

The latest sales figures for Google, which have been contributed by the NPD Group, really do represent a sea change in the marketplace, as it is only one year ago that devices which are running Chrome OS, Google Inc (GOOG - Get Report)'s patented operating system, made up only 0.2% of the market. But it is thought that the price point at which Google have introduced the Chromebook into the marketplace - the Google notebook retails at around $200 - has contributed greatly to its recent success, offering the affordability and budget element of the tablet, while still retaining some critical functionality that tablets sometimes fail to deliver.

Amazon reveals Google’s best selling Chromebook

In addition to the growth of the Chromebook, the key retailer, Inc. (AMZN - Get Report) has also revealed that Chromebooks comprised two of the three best-selling notebooks over the Christmas period in the United States. Over the same period analysts described the sales of Windows-based notebooks as being tepid, and it is clear that this marketplace that has typically been dominated by Windows devices is now becoming more diverse.

This is reflected by some very alarming news for Microsoft. Its own selection of notebooks have fallen in sales by 21% over the calendar year. With the XBox One possibly not selling as well as hoped, and certainly in second place in the console battle to Sony Corporation (SNE - Get Report) TYO:6758's Playstation 4, and this particular sector which was once utterly dominated by Microsoft Corporation (MSFT - Get Report) clearly becoming open to new competitors, it was not the merriest of Christmases for the software giant.

Microsoft-Google competition

Nonetheless, a company of the size and prominence of Microsoft Corporation (MSFT - Get Report) is hardly going to be wiped out easily, and it still retains a massively significant, and dominant, share of the notebook market. But Google Inc (GOOG - Get Report) is used to huge success in virtually every field that it enters into, so what are the prospects for Chromebook in 2014? Can it continue its rapid ascent and grab even more market share?

The first thing to note is that this particular report focuses on businesses and public sector institutions, not consumer spending. A full impression of this marketplace will emerge in January when we get a true snapshot of consumer spending in this sector.

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