Analyst: iPads a Threat to Entire PC Industry

Ed Sutherland ()

Analyst: iPads a Threat to Entire PC Industry

Photo by JaredEarle - http://flic.kr/p/81DbvX

We’ve already heard that Apple’s iPad is putting a hurt on netbook sales. Now comes thinking that the iPad is a threat to the entire PC industry.

“Sales of traditional notebooks appear to be feeling pressure from the iPad,” UBS analyst Maynard Um says. Although the iPad cannot match PCs function-for-function, consumers who buy an iPad “may be more willing to delay purchases and upgrades of existing PCs,” Um told investors.

Um said he expects Apple will sell 28 million iPads in 2011, a figure he termed “conservative.”

Particularly worried about this news is Microsoft and low-end PC makers, such as HP and Dell. Up until now, the iPad has impacted sales of low-cost netbooks running either Linux or a stripped-down version of Windows. But if the iPad is eating into low-end PC sales, it means Microsoft is losing licensing fees from full-blown Windows to Apple. Also, this puts increased pressure on PC manufacturers to produce tablets that can compete – a difficult task.

In addition, Apple’s success in tablets digs the hole only deeper for Google. Although the Mountain View, Calif. Internet giant has been successful in matching Apple’s smartphone business move for move, can it do the same for an Android-based tablet?

Recently, Deutsche Bank analyst Chris Whitmore told clients the iPad is “directly cannibalizing demand for other vendors’ NB products.” The erosion of PC sales in light of the iPad enabled Apple to jump from the No. 7 computer-maker to the No. 3 spot, passing several traditional PC makers.

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[Business Insider, AppleInsider]

16 comments »

About the author

Ed Sutherland

Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

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  • €500

    My wife and I both have an iPad (I had to buy her one after she hogged mine having said she didn’t want one), we spend less and less time in our office, me Mac Pro 1.1 her MacBook Pro, to check email, get info and hurricane updates via the web, she has said she does not want a new MacBook Pro and although I still ‘need’ a new computer after 3 years, I am finding it harder to justify since owning an iPad, so I can see others doing the same.

  • OlsonBW

    I haven’t bought anything with Windows on it since 1998 so Microsoft lost me a long time ago. I won’t even buy a PC and replace Windows since MS would still make money on that purchase.

    Since the iPad didn’t exist five years ago when I need a low endish laptop, ok, wanted a low ended laptop, I didn’t for one second look at new Apple laptops. I went straight for a used one for basically just the things the iPad was created for. Funny thing is, the iPad (with accessories) cost me as much as a MacBook but for me it is a lot better.

    When I want to create things I don’t want a tiny screen so I never wanted a laptop in the first place because they are just too bulky. The iPad isn’t. It takes far less time to pull out my iPad and wake it up (since it is always on) than it is to wake up a laptop.

    When it’s time to create, even on the road, I take either my 24″ iMac or my Mac Mini with me. The latter since there is always a monitor and keyboard I can borrow from a hotel.

  • Gronk

    Fully agree, even though I work for HP I love my macbook and my iphone and I got a iPad for my birthday and its never out of my sight. I now only use the macbook now for syncing my iPad/iPhone.

    The iPad is just so convenient, instantly boots and most of the time what do I do with a PC, browse the web, and email…all just as easy and more convenient on the iPad. Unless they add some wonderful USP to the macbook I’ll be thnking of upgrading my iPad before my macbook!

    Kids also look on in envy but it is out of bounds. When they need new laptops…I imagine they’ll want iPads.

  • Jim

    I bought my Wife an iPad in May and she rarely uses the iMac anymore, only for syncing, or if she needs to print something (web page or email).

    With printing coming in 4.2 I assume that will be 1 less reason to use the iMac.

  • Ramón

    Right about now would be a good time to reprint many of the comments by industry “pundits” who claimed that iPad was merely a passing fad.

  • LGgeek

    The only thing really missing is a REAL office suite. there are a few apps that come close but for business there has to be total compatibility. There’s mail and web which will cover most tasks.

  • Poppa

    It might be that the ipad fits what you want to do easily,a computer be it desktop or laptop is just a buisiness machine adapted for the home use.
    unless you need to do office work, an ipad or equivelant tablet could be just what you need.

  • azurehi

    The fact that I cannot watch content requiring Flash stops me from buying the iPad.

  • Bobby

    @ azurehi: Really? I guess to each his own. I have a plug-in that automatically disables all flash and gives me the option to click it to turn it on for specific things. I haven’t clicked to turn anything on in almost 2 months. Like I said to each his own but for me, especially with HTML 5, flash is a nonissue.

  • azurehi

    I enjoy watching Youtube clips Not available in HTML5 for example. So much of the past is available there, material that will never be converted to HTML5. Buying a device that Limits (Censors?) what I can view makes no sense to me.

  • king

    although I agree that html5 works better(smoother cooler) for me,
    the truth is FLASH is used widely that browsing the web with out it , is crippling to the ipad.

    A lot of the vegas hotels, videogames, and more websites depend almost entirely on flash.

    last we checked, the IOS was only 2% or so in total computers browsing the internet. I hardly think any one will make an investment to change his website for those 2%

  • Kate

    That’s why there’s a YouTube app on the iPad/iPhone/iPod Touch. It’s not an issue to not have flash.

  • mlahero

    If the iPad had Flash it would be a no-brainer for me. It would take over from my laptop and be my main casual computer device, but that lack of Flash is just enough to make me hesitate and…. gah…. consider waiting for an android tablet instead.

  • azurehi

    From what I can find, the YouTube App does Not allow All sites using Flash.

  • neo

    azurehi there an app for that. Sorry had to say it. Cloud Browse one of few apps that let u see videos that still use flash. It an app that runs of a browser so your seeing the video through another computer. It works pretty well on the iphone, some and runs ok in the ipad.

  • azurehi

    Thanks Neo, I will go to the Apple Store and see if someone can demo Cloud Browse for me. One review I read stated that the AlwaysOn servers were often busy, limiting the immediate availability of flash content.