updated 12:55 pm EST, Fri November 12, 2010
'Fully functional' device may be more appealing
The new MacBook Air may actually cannibalizing Apple's iPad sales, according to Rodman & Renshaw's Ashok Kumar. The analyst cites only "anecdotal evidence," but argues that for some people the leap in cost may be worth it. "A fully functional notebook in a very attractive form factor may be resonating more with consumers than a content consumption only device," Kumar writes in an investor memo.
If accurate, the claim would mark a reversal of trends. The iPad is generally believed to be eating into netbook and notebook sales, offering some advantages over netbooks while being cheaper than a notebook. A Microsoft executive, product management GM Gavriella Schuster, recently acknowledged the iPad's impact on netbooks.
Kumar also quotes supply chain checks as indicating that while high, iPad production may not meet the expectations of some analysts. Levels aren't expected to break more than 2 million per month by the end of the year, in contrast with other views calling for 3 million. Anyone predicting 6 million or more iPad shipments during the December quarter could be disappointed. "This shortfall will be the second quarter in a row," says Kumar.