Apple Trumpets Ipad Cannibalization

Apple yesterday made its strongest statement yet that soaring iPad sales are affecting the laptop market, saying that the problem should concern its rivals.

"Was there any cannibalization by iPad?" Tim Cook, Apple's chief operating officer, said during a Tuesday earnings call with analysts. "Honestly, I don't know for sure. But yes, I think there is some cannibalization."

Apple sold 7.3 million iPads in the final quarter of 2010, more than two-and-a-half times the number of Mac laptops sold in the same period and almost double that of all Macs.

Last year, analysts debated the idea that iPad sales, and tablet sales generally, would cannibalize sales of notebooks and the even smaller, cheaper netbooks.
In May 2010, for example, Jeff Orr of ABI Research dismissed netbook cannibalization, while four months later, Stephen Baker of the NPD Group said it was too early to conclude that rising iPad sales and slowing netbook purchasing were connected.

More recently Gartner analyst Mikako Kitagawa said it was unclear whether cannibalization was taking place, arguing instead that people may instead be postponing upgrading their home machines, and spending the money on other things, including tablets or video game consoles.

Apple's Cook did not quantify notebook cannibalization, or even admit that it had affected the company's laptop sales.

Cook cited the strong sales of Apple's laptops last quarter to back up his point.

Sales of Apple's MacBook line increased by 37% over the same quarter in 2009, fueled by the October introduction of a revamped MacBook Air. Apple's desktop and notebook sales combined to post a 23% year-over-year growth rate, seven-to-eight times higher than the computer industry's average gains as projected by IDC (2.7%) and Gartner (3.1%).


"If this is cannibalization, it feels pretty good," said Cook yesterday.
Ezra Gottheil, an analyst with Technology Business Research, said cannibalization was part of Apple's strategy.Hp nc6400 battery,Hp nc8230 battery,Hp pavilion dv4 battery
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