Apple’s iPad to jeopardize the netbook market

16th May, 2010 by adina
Tags: Apple, iPad, Netbooks, News, Research

Apple’s iPad already has harmful effects on the netbook market, as new research by analyst Katy Huberty from Morgan Stanley shows. The year-over-year growth in sales of netbooks began to dramatically decrease in January, at the same time the iPad was announced. In April, when the iPad shipped, they remained flat at five percent. According to Huberty, 44 percent of potential iPad buyers a month earlier, in March, were planning to get the Apple tablet instead of a notebook or a netbook.

She also added that the iPad has a high potential for competing other categories too. Notebooks seem to be the most likely to be affected, as 44 percent mix of Windows notebooks and MacBooks are at risk. At the same time, 44 percent of iPod touch buyers are supposed to switch to the iPad. A significant part of up to 28 percent of the e-readers market is also vulnerable, while sales of desktops and game consoles are the least affected and are not supposed to lose an important number of customers.

Part of the drop in netbook sales growth in the first month of the year can still be attributed to the post-holiday usual drop-off in sales and to a maturing market, as many of the people already having a netbook did not see a reason to upgrade. The decline in March and April, however, was obviously influenced by the iPad launch, since many customers have reconsidered their plans of buying netbooks after this event and made the decision of buying an iPad instead.

The initial iPad offering is situated outside of the majority of the netbooks range. Its least expensive models occupy the high end of a field where $300 and $400 systems are very common. Additional features as an e-reader and game system definitely work to its advantage. The iPad can be less expensive for customers who want to have simultaneously a handheld device and a netbook-class device.

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