Prices for notebook computers in Europe are still falling and in the first quarter of 2005 one in five laptops were sold for less than €800.

Researchers from Context saw the market in the top eight European economies grow by 19.2 per cent.

Jason Harcourt, senior analyst at Context, said: "We see prices continuing to fall, not sure how much in the short-term but we will see more of the lower-end market."

According to Harcourt, Acer has established itself as a top brand across Europe and has shown "fantastic growth". He believes manufacturers will continue to try and maintain a price difference between desktop and notebook machines despite them increasingly offering the same functions.

Sales in UK and France of sub-€800 machines grew 32.9 and 15.2 per cent respectively - more than a quarter of total notebook sales in both countries.

But sales in Germany grew by only 0.2 per cent. Machines costing less than €800 are now the largest market segment replacing the €1,201 to €1,500 segment.

Context looks at indirect sales across Europe to both businesses and consumers.

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