PC sales slow as Apple's iPad 2 goes FTW
Suppliers have confirmed that PC sales are currently experiencing "weak demand" as tablet sales continue to rapidly increase.
Nevertheless, PC sales are still growing, albeit at a slower pace than originally anticipated.
As such, Deutsche Bank analyst Chris Whitmore slashed 2011 PC unit growth projections - excluding tablet sales - to a 4 percent year over year increase, compared to his previous prediction of 9 percent.
Concurrently, Whitmore bolstered his 2011 tablet sales forecast to 45 million units (up from 40 million), with at least 35 million expected to be offloaded by Apple.
"We remain skeptical whether the likes of (HP), Dell, Motorola, Samsung and RIMM can close the competitive gap on iPad 2," Whitmore wrote in an industry note obtained by AppleInsider.
"Specifically, iPad challengers must either undercut on price (negative margin implications) and/or offer a superior user experience."
According to the analyst, Apple's iPad will remain dominant with approximately 70% tablet market share, as non-iPad are likely to "underwhelm."
Unsurprisingly, Whitmore added that tablet sales have had the most significant impact on the consumer notebook market, which is effectively being "usurped" by Apple's iPad.
"Apple remains the primary beneficiary of this technology transition which is increasingly coming at the expense of PC vendors - Acer, HPQ, etc."