In an article over a Cnet, the site’s executive editor, David Carnoy, argues that Apple must release a netbook now, claiming that the company is “on the verge of missing an opportunity.” While is it is probably true that Apple has considered selling netbooks in the past, it’s not going to happen and may not necessarily be in the best interest of the Cupertino company.

An article on 9 to 5 Mac offers one good point. Apple is an innovator and does not follow industry trends. Most importantly, they are dedicated to quality and won’t release subpar products, even if it means jacking up the price.

“There are some customers [Netbook demographic] which we chose not to serve.  We don’t know how to make a $500 computer that’s not a piece of junk, and our DNA will not let us ship that. But we can continue to deliver greater and greater value to those customers that we choose to serve. And there’s a lot of them.”

Apple has been so profitable because they are able to convince consumers to go that extra mile and pay a bit more for something top-of-the-line, unlike its PC counterparts, who lower prices and quality in an effort to compete. These companies then complain about razor-thin margins and often struggle to turn a profit. Apple doesn’t need to worry about this. They compete with quality, not price.

Carnoy makes the point that Apple is losing a chance to take market share away from Microsoft by not developing a netbook. While this is true in a sense, keep in mind that netbooks are not designed to be primary computers. Most netbook owners also own a more powerful computer for demanding tasks. Share in the netbook market isn’t the same as in the desktop or notebook market. People just use their netbooks to check email and surf the web. Apple would much rather gain market share in the more profitable desktop or notebook arena than waddle around in something that is just as likely a fad.

Some will argue that a budget-priced netbook would give consumers the chance to test the waters with OS X, enjoy the experience, and then eventually buy a Mac. Apple does not want this. They know they cannot provide a good user experience on a 1 GHz CPU with 512 MB RAM. If people have their first exerience with OS X on a slow netbook, then they are likely to get the wrong idea about the operating system. Users need to see the operating system in its prime environment, a fast machine where Photoshop and the like can be run.

AMD ran into this issue nearly ten years ago when many of its Athlon processors were shipped on budget HP and Compaq computers. The systems were junk, but the processors were fine. Consumers who had bad experiences with the cheap machines looked on the front of the machine, saw “Powered by AMD,” and assumed that the CPU was the source of their woes. As far as they could tell, the only difference between their $400 computer and the pricier $600 systems was the inclusion of an AMD processor instead of an Intel. The chip maker still hasn’t gottten over the stigma of being a budget brand.

Apple is well advised to stay out of the netbook market. The company is making piles of cash selling high-end products to consumers who realize quality comes with a price. By releasing a netbook, they would not only be violating their principles, but catering to a nonessential user base. There is no value in the netbook market, and Cupertino sees that quite clearly.

Photo courtesy Mickphoto.