Personal computer maker Acer said Friday morning it is cutting the price of its Aspire “netbook” to $349 from $399. It’s cutting the price of another netbook, the Linpus Linux Lite, to $329 from $379.

None too soon.

The entire category of so-called netbooks – personal computers designed primarily for Internet use – may be headed over a price cliff, according to industry analysts.

That notion was one take away of the Intel Developer’s Conference, which took place in San Francisco this week. A major topic of the conference was the growth of the category of netbooks.
“Dozens and dozens of netbooks were shown,” said Richard Doherty, research director for Envisioneering, an electronics market research firm. The computer makers saw for the first time “just how many competitors they have.”

Mr. Doherty said the netbook makers realized something else: “It was a time for reflection that maybe they need to be more aggressive on price.”

Heavy price competition is never a happy thing for manufacturers. More broadly, this netbook category has been a mixed blessing for the personal computer electronics industry.