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]
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.
2 responses to “Intel Stock Put on ‘Hold’ As Experts Worry About iPad Effect”
But… but… but… No consumer in their right mind would ever buy a $499 iPad 2 “toy” instead of an extremely useful $250 Windows netbook that supports Flash. Oh, wait…
Oh, mighty Windows Chewsters, you’ve been PWNed.