iPad cannibalizes low-end notebook sales

Posted by Trent Nouveau

It's official: the iPad is adversely affecting the traditional PC industry, with eager consumers expected to snap up at least 28 million of the popular touchscreen devices at the expense of low-end notebooks. 

"Sales of traditional notebooks appear to be feeling pressure from the iPad, causing a scramble by vendors to launch iPad-like tablets," UBS Investment Research analyst Maynard Um wrote in a note obtained by AppleInsider.

"We believe that a majority of this impact is occurring on the lower end of PC sales as the iPad is priced close enough to this range that it becomes attractive to consumers looking to make purchases within this segment."



iPad cannibalizes low-end notebook salesHowever, Um emphasized that a "pure" cannibalization of PC sales by the iPad currently remained uncertain, as the tablet was still incapable of delivering the same functionality as full-fledged notebook PCs.

He also noted that UBS continued to favor "product plays" by Apple, with the company remaining on track to boast some of the most "highly sought after" products during the holiday quarter.

"Despite tough economic conditions, consumers remain willing to pay for innovation," explained Um.

"And despite increasing competition in smartphones and that which is soon to come in tablets, Apple's ability to keep its products fresh and innovative gives us confidence in our estimates going forward."