Apple’s iPad has become the latest fall-guy for PC makers seeking a reason for falling sales … and the ground’s coming up fast.
First netbook-maker Acer, now PC giant HP suggest Apple’s tablet is the root cause of their troubles. HP’s CEO warned staffers of “another tough quarter” during the financial quarter ending in July. As a result, HP will “watch every penny,” requiring expenses be cut and limiting hiring new employees, according to an internal memo leaked to Bloomberg.
“We have absolutely no room for profitless revenue or any discretionary expenditures,” Leo Apotheker wrote. Like other PC manufacturers, HP has blamed its financial troubles on lack of sales of new computers. The decision not to upgrade to a new Windows-based computer even has a name: the ‘iPad Effect.’
Recently, a former Acer CEO criticized current management for not developing tablets and mobile devices more quickly. “I already saw if we want to become a major player in this new world, we needed to do certain investments, mainly on software and on smartphones and tablets, on touch,” ex-CEO Gianfranco Lanci told a blog. The criticism came after Acer saw profits fall due to the iPad and other tablets eroding the market for inexpensive netbooks. Indeed, Acer’s founder announced plans to emulate Apple.
PC makers “should not single-mindedly pursue volume growth, and should extend its operation to the field of service, just like Apple has done,” Stan Shih said.
The problems at the small Acer were likely to appear as the iPad became a viable alternative to low-powered laptops. However, the iPad Effect now appears to have reached First-Tier PC makers, such as HP. This only supports the belief the iPad is growing in market share and remaking the personal computing landscape – something that deserves credit, not blame.
