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iPad cannibalizing whole notebook PC industry

updated 08:40 am EDT, Wed September 8, 2010

iPad seen hurting all low-end notebook sales

Apple's iPad isn't just hurting netbooks but notebook sales as a whole, UBS analyst Maynard Um told investors today. While it wasn't always replacing notebooks outright since it isn't currently a true replacement, the tablet is in many cases letting computer buyers put off either replacing or upgrading a computer in the same timeframe. Lower-end PCs were at the highest risk.

"Sales of traditional notebooks appear to be feeling pressure from the iPad, causing a scramble by vendors to launch iPad-like tablets," Um wrote. "We believe that a majority of this impact is occurring on the lower end of PC sales as the iPad is priced close enough to this range that it becomes attractive to consumers looking to make purchases within this segment."

The researcher didn't directly say who had been impacted, but the claims have been backed by both confirmed and likely effects on PC builders, especially those who depend on netbooks. ASUS has lowered its Eee PC shipments during what's normally supposed to be a peak sales period, purportedly due to the iPad curbing its results. Samsung's creation of the Galaxy Tab may have been to offset the iPad's damage to its netbook business in Europe.

In spite of competitors, Um didn't see a significant threat to the iPad in the short term and saw Apple moving as many as 28 million iPads in 2011, a figure which he said could still be "conservative." It also isn't affecting the Mac, he said.

The analyst further cited industry checks that "confirm" the CDMA iPhone should arrive in early 2011. Its possible effect bumped the forecast from 47.2 million iPhones moved in 2011 to 52 million. The just recently released iPod updates also gave Um reason for optimism for MP3 players, with the FaceTime support on the iPod touch being a stronger selling point.

by MacNN Staff



  1. erics

    Joined: Dec 1969


    sounds like a duck

    yes I know the debate about the tech, but honestly, I get up in the morning and just like a fresh newspaper by my coffee and cereal bowl, theirs MacNN feeding me what I need to start the day ;)
    too cheezy? whatever, I love the iPad, it does what its suppose ;)

  1. Foe Hammer

    Joined: Dec 1969


    Users Will Want Their PC Notebooks Back ...

    ... as soon as they get a taste of the PC/also-ran tablet offerings. They'll vastly prefer their horrid notebook experience versus an even more horrid wannabe tablet experience. Then again, some will finally say "enough is enough!" and check out MacBooks, MacBook Pros and iPads.

    Comment buried. Show
  1. lamewing

    Joined: Dec 1969


    Stylus support?

    I would pick up an iPad or Android tablet in a heartbeat IF ONLY they would include stylus support and handwriting recognition as good as that found in Windows 7. Those devices are just screaming..."WRITING TABLET" or "DRAWING TABLET" ... Fingers just don't cut it for that kind of work.

    I love design of a slate, but to not include stylus support is just hampering the potential capabilities of these devices.

    Hey MS, license your handwriting recognition technology to Apple since Jobs seems to have no interest in actually developing it at Apple!!!

  1. Twoflowers

    Joined: Dec 1969


    Stylus support

    You can get a stylus that works with the iPad. There's no text recognition, but that's not really an issue, given how well the virtual keyboard works. You can even make your own stylus if you're handy. < >

  1. Lifeisabeach

    Joined: Dec 1969


    Lamewing - you are so lame

    Do a little research next time before mouthing off about a product you know nothing about. There actually are a number of 3rd -party stylus' available for the iPad/iPhone. Heck, in Korea, they just use sausages while wearing gloves in the winter. As for handwriting recognition - there ARE apps for that. It took me 3 seconds to find a handful via Google.

    Comment buried. Show
  1. Jonathan-Tanya

    Joined: Dec 1969


    iPad is the wrong size

    oh I get it, Apple is trying to differentiate the tablet from the cellphone - Apple likes clean delineations.

    And to a certain extent, so does society - remember the Walkman? It wasn't the only iconic music player of the 80's - they also had the boombox.

    Cellphones may get smaller and smaller, but they will also get larger and larger.

    That 7" tablet, is really just a cellphone. Right now we have this delination - under 5" - cellphone, 5" and over - tablet.

    But give me a break, what's really going on here, is we are moving away from, as Steve Jobs calls them - the "trucks" - the pc's, laptops, etc. and towards those "cars" - cellphones, tablets.

    So, how hard is it to skip ahead just a bit, if your TABLET is replacing your LAPTOP, how long before you want your PHONE to replace your TABLET.

    The larger phones - called tablets, which are going to be pioneered by Android, not Apple, will catch on, and become popular. We will have our boombox to our walkman, at last.

    Comment buried. Show
  1. facebook_ZooGue

    Via Facebook

    Joined: Sep 2010


    I believe it especially with the ZooGue iPad Case

    I love my iPad even better than my laptop. I don't really use my laptop unless im like typing a long letter or something.

    The iPad is the best especially with the Awesome ZooGue iPad Case

    Here is the ZooGue site

  1. LouZer

    Joined: Dec 1969



    This guy claims notebook sales are suffering from the iPad, and bases this 'analysis' on the fact that notebook makers are jumping on board the tablet bandwagon?

    Could it not just be as simple that they're jumping on the bandwagon because that's what they do, not because they see their sales decline? Could it not be that it is actually a different market, not one replacing the other?

    If the iPad were a notebook replacement, people would also be buying less MacBooks, but no one's reporting that is happening.

  1. iphonerulez

    Joined: Dec 1969


    If this were true, it would seem

    that Microsoft will lose quite a number of OEM Windows licenses. Yes, it probably won't be enough to seriously hurt them, but Wall Street will look and say that Microsoft's near-term prognosis isn't that good and it may be enough to hold Microsoft's share price down. If Apple can manage to sell about 10 million iPads this year, I'd say it's a very good start of putting some fear into Microsoft. If the economy stays tight, corporations may forego upgrading their Windows desktops and concentrate on giving iPads to their salesforce. I'd love for this to happen even for a year or so, just to slow down Windows sales and to prove that people can live without Windows dominating their lives.

  1. Mr. Strat

    Joined: Dec 1969



    Netbooks continue to die off? I'm all for that.

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