As expectation builds that Apple will soon announce a new version of its original iPad, one financial house projects the overall tablet market will become a $35 billion business by 2012, with more than a third of the devices reducing demand for netbook and notebook PCs.
“We expect tablets to have an increasingly negative impact on PC shipments,” JPMorgan Securities analyst Mark Moskowitz told Reuters Monday. More than 35 percent of the tablets will cannibalize the market for low-cost netbooks and notebook computers.
The analyst raised 2011 tablet revenue projections to $26.1 billion, up from $24.9 billion. He also nudged his 2012 revenue forecast to $35.2 billion, up from $34.1 billion, when Moskowitz sees 79.6 million tablets shipping.
Although Apple now enjoys a dominant position in the market, the financial house sees a larger number of competitors, fueled by better operating systems and increasing inroads into the business and education sectors. As a result of more options during the later half of 2011, Apple may be forced to lower iPad pricing, according to JPMorgan.
This is just the latest sign of maturity in the tablet market. Obviously, the iOS system – as was done in smartphones – will be challenged by a tablet version of Google’s Android operating system. While more tablets may be brought to the market, it is yet to be seen how many will survive.