Since then Apple has faced a slew of challengers from netbooks, rival laptops and its own creation; the booming tablet market.
PC manufacturers are solving the price problem by using cheaper Intel Atom processors (familiar from netbooks) instead of Core iX chips (used in Ultrabooks).
To make more money from netbooks, it will offer a minimalist "starter" edition of Windows 7, the new version of its operating system due out in October.Intel, by contrast, has so far mainly benefited from the netbook craze, which has created a huge market for its Atom chip.
Computer makers hope that consumers who have gotten an appreciation for light laptops from netbooks will want to pay a few hundred dollars more for a bigger screen and keyboard, and better video-playing performance.
The MacBook Air probably didn't take any sales away from netbooks - the price difference would see to that - but it did point out to PC manufacturers struggling to make a margin that cheaper wasn't actually the way to go.
Timing clearly played a part too - Mr Houston launched the firm at a time when users were migrating towards multiple devices, from netbooks to mobile phones (and later tablets).
Instead of tying customers to their home phones, as Vonage used to, these new services will be offered as applications that can be downloaded to a variety of devices, from netbooks to smart phones.
LAS VEGAS Realizing that cellphone sales will eventually slow in the U.S., AT&T and Verizon are racing to connect everything from netbooks to electronic readers to their networks.
It's a netbook; it doesn't look too different from netbooks you've already seen, but for one difference: see that little switch right there?
