Apple iPad Cannibalizing Notebook Sales, Best Buy CEO Says
Best Buy's CEO says Apple's iPad sales are eating into notebook and netbook sales; more tablets are on the way.In a report that suggests fears of tablet computers biting into the notebook and netbook markets is justified, Best Buy CEO Brian Dunn told The Wall Street Journal that Apple's iPad has "cannibalized" sales of notebooks by as much as 50 percent. Dunn told the paper that sales of smartphones and portable computers continued to rise, thanks in part to devices like the iPad. It's a very different environment now," the chief electronics analyst for market researcher NPD Group Stephen Baker told the Journal. "The real cool stuff now will be the tablets, e-readers and probably the higher-end digital cameras." A July report from a Barclays Capital analyst said Apple would sell about 20 million iPads in 2011, negatively affecting lower-cost notebooks as well as the netbook market. Other analysts have also suggested growth for the tablet PC market, with research firm IDC estimating that worldwide media tablet shipments would total 46 million units in 2014. "IDC expects consumer demand for media tablets to be strongly driven by the number and variety of compatible third-party apps for content and devices," analyst Susan Kevorkian wrote in a May statement.
A report by research firm iSuppli came to a similar conclusion. This year, the firm said it expects the iPad to account for 74.1 percent of global tablet shipments, with the remaining portion going to "a mix of older PC-type tablet products and competitive slates." In 2011, as the competition begins seriously filling out, iSuppli still expects Apple to command 70.4 percent of the market, and nearly two-thirds market share through 2012. At present, while a number of tablet devices are set to launch - running Windows 7, Android and webOS - iSuppli said it believes none of these are ready to be serious competitors to the iPad.