Intel has admitted that netbooks do not attract new buyers. Instead buyers of netbooks already own PCs or laptops and just want something a bit cheaper and more portable.

The admission means that new machines running Windows 7 for netbooks with 10.1” screens will not turn out to be popular on emerging markets at all. Intel had been hoping that cheap netbooks would be a way into emerging markets. But Sean Maloney, executive vice president and chief sales and marketing officer at Intel said first-time buyers are not going to buy netbooks.

“The first time you buy something you want the real deal. It's consistent not just in China, but all around the world. If you are going to spend your hard-earned money for the first time, you are going to put a computer in your house,” he said.

Netbooks are mostly acquired by those, who already own one or two proper personal computers, but who need to have a very basic and inexpensive system for surfing the Internet or reading email, Maloney said. However Intel should be happy. It was worried that netbooks do not cannibalise sales of notebooks and if what is says is true, it isn't.