More indications that the iPad is cutting into PC sales, as well as their suppliers. Tuesday, one analyst put a “hold” recommendation on Intel’s stock, telling investors the iPad 2 could eat into notebook demand.
Canaccord Genuity analyst Bobby Burleson also lowered his price target on Intel shares to $19 from $22. Intel reportedly could announce disappointing second-quarter sales due partly to the supply disruption from Japan, along with Apple’s impact on notebook sales. He cut Intel 2011 revenue expectations to $48.75 billion, down from a previous $50.5 billion projection.
Earlier Tuesday, we reported Deutsche Bank analyst Chris Whitmore trimmed his estimates for PC sales by more than half, writing that the iPad had ‘usurped’ notebook sales. The analyst told investors he expects 4 percent PC sales growth this year, down from 9 percent previously projected.
[Barron’s]
