Apple could sell 28 million iPads in 2011, perhaps delaying customer purchases of traditional notebooks, according to a new UBS Investment Research note.
Apple could sell 28 million iPads in 2011, perhaps affecting sales of lower end
PCs, according to a new research note from UBS
"Sales of traditional notebooks appear to be feeling pressure from the
iPad, causing a scramble by vendors to launch iPad-like tablets," UBS
Investment Research analyst Maynard Um wrote
in that note
, excerpted on the blog Apple Insider. "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."
In addition, Um reportedly suggested that "consumers who purchase iPads
may be more willing to delay purchases and upgrades of existing PCs,"
although he stopped short of suggesting the iPad has started to cannibalize the
Apple executives have seemed fine with that prospect, however.
"If it turns out that the iPad cannibalizes PCs that, I think, is
fantastic for us, because there are a lot of PCs to cannibalize," Apple COO
Tim Cook said during
the company's July 20 earnings call
. "It's still a big market."
iPad now ships within 24 hours from the company's online store
the company's production capacity has caught up with demand for the device.
Previously, the storefront had reported days' or even weeks' worth of shipment
delays. For the third quarter of fiscal 2010, Apple reported sales of 3.27
Whether or not the iPad ultimately affects notebook sales, it certainly has
goaded other manufacturers to explore tablet PCs. Samsung is preparing to
launch its 7-inch Galaxy Tab, running Google Android, while Dell has already
released its 5-inch Streak. Research In Motion is reportedly exploring a
BlackBerry-branded tablet, running its new BlackBerry 6 OS, and Microsoft
executives have made public that company's intention to port Windows 7 onto a
variety of tablet form-factors.
Hewlett-Packard caused a minor stir earlier this year, when it acquired Palm
and then announced a future line of tablets running the latter's Palm WebOS. HP
will reportedly also produce a line of enterprise-centric tablets that run
However, some analysts believe that all of these companies face a
substantial uphill battle if they want to take market share from Apple.
"Apple's vertical integration with software, online services, apps and
design gives it unparalleled advantages in time-to-market and ease-of-use for
customers," Ben Reitzes, an analyst with Barclays Capital, wrote in a July
7 research note. "We believe HP must demonstrate to investors that its
Palm deal gives them exposure-and that it can use its distribution and link
with printers to help gain a foothold. We believe the tablet market presents
challenges for Dell." Reitzes estimated that Apple will sell 20 million
iPads in 2011. While lower than Um's estimate, it is nonetheless in line with
other analysts who believe the iPad and large-tablet markets will only increase
in the short- to medium-term.