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Businesses Snap Up Budget-Friendly Chromebooks

 & Chloe Albanesius Executive Editor, News

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Buying PCs for your employees is not cheap, and it seems like a number of businesses and schools are eyeing Google's low-cost Chromebooks as an affordable alternative to pricier laptops.

According to Monday data from The NPD Group, U.S. commercial channel sales - which include businesses, schools, governments, and other organizations - of Chromebooks were up 250 percent over the last year for the first five months of 2014, and made up 35 percent of all channel notebook sales between January and May.

NPD said this bodes well for Chromebook ahead of the back-to-school season. During the three weeks ending June 7, about 40 percent of commercial channel notebook sales were for Chromebooks, up from 35 percent of overall sales to date.

"Building on last year's surprising strength, Chrome's unit strength ahead of this year's education buying season shows how it has become a legitimate third platform alongside Windows and Mac OS X and iOS," said Stephen Baker, vice president of industry analysis, The NPD Group. "The next test for Chrome will clearly be the most difficult, as both Apple and Microsoft get more aggressive in pricing and deal making over the next few months. By the end of the third quarter we will have a much clearer picture of the long-term impact Chromebooks will have in the commercial channel."

Those aggressive tactics appear to have already started. As noted by The Verge, Microsoft today revealed that HP will release a $199 Windows-based laptop in time for the holidays, while Acer and Toshiba will have $249 options.

Chromebook Unit Share by BrandFor now, it's Windows-based desktops that are doing well, according to NPD. Commercial channel Windows desktop sales through the first five months of the year were up 25 percent, thanks in part to the demise of Windows XP support.

"In fact, Windows desktop sales volume actually exceeded Windows notebooks in the first five months of 2014," NPD said - 1.5 million vs. 1.4 million, respectively.

Windows notebook sales were flat, while MacBook sales increased more than 20 percent, NPD said.

"The commercial channel for client devices has been undergoing considerable change over the last few years," said Baker. "The advent of tablets and Chromebooks, and the introduction of Windows 8 have all combined to make the market much more volatile than it has been in the past. But the bottom line is that despite reports to the contrary the market for desktops and notebooks sold through the channel in the U.S. has never been better."

One PC maker who likely wishes things were better is Dell, which has temporarily halted consumer sales of its Chromebook 11. The education version is still available. Dell did not immediately respond to a request for comment, but a spokeswoman told PC World that the move was due to "strong demand."

The HP Chromebook 11 was pulled from virtual shelves in November, amidst concerns about overheating and melting chargers, but is now back on sale.

For more, see PCMag's review of the Toshiba CB35-A3120 Chromebook (slideshow above) and Acer Chromebook C720P-2600, as well as our roundup of The Best Chromebooks.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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