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There is room for netbook growth in 2010 according to iSuppli

The anticipation surrounding the iPad in the months leading up to its official announcement was intense. Once the product was officially announced, many competitors started saying that the iPad might be Apple's worst product ever.

Despite what competitors and analysts thought, the iPad has sold very well for Apple – over a million of the devices have been sold so far. The iPad is selling so well that analyst Katy Huberty reports the iPad is cannibalizing the notebook and netbook market.

Huberty said, "U.S. consumer PC, and especially notebook growth decelerated in January when Apple introduced the iPad and again in April when the iPad launched. Given the corresponding increase in [average selling prices] in the market, we believe much of the demand shortfall came from netbooks and low-cost notebooks."

The products according to Huberty that are most at risk for cannibalization by the iPad for those who already owned Apple products were the iPod touch and notebooks. Consumers not wanting Apple products were most likely to see the iPad cannibalize the eReaders and notebooks.

The netbook market may be shrinking according to analysts thanks to the iPad, but there is still a market for netbooks in 2010. 
eWeek reports that Acer, HP, and ASUS will lead netbook growth in 2010. Netbooks are on target to post double-digit growth this year (down from previous years of triple-digit growth) while notebook shipments overall are expected to grow 25.5 percent according to numbers from research firm iSuppli. The rebound in the global economy will help growth in all areas of the computer market as consumers and businesses start to upgrade machines.

The standard notebook market is expected to post growth of 21 percent this year with 160.5 million notebooks shipped. One of the biggest growth categories this year is expected to be CULV notebooks with 93 percent growth. 
ISuppli also expects Acer to hold onto the top netbook maker spot for 2010 with ASUS in second, HP in third, Samsung in fourth, and Dell in fifth.

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By amanojaku on 5/7/2010 10:51:07 AM , Rating: 5
Report: Apple iPad Encroaching on Notebook, Netbook Market The iPad is selling so well that analyst Katy Huberty reports the iPad is cannibalizing the notebook and netbook market.
NOT TRUE. Read the original article:
The March 2010 Alphawise survey results, disclosed Thursday by analyst Katy Huberty with Morgan Stanley, give insight into the potential cannibalization of other Apple products due to the release of the iPad.
The iPad has been out less than two months; how could it have cannibalized sales so quickly? Answer: it hasn't.
Huberty said that the iPad has already had an impact on portable computer sales, which have slowed since the start of 2010.
Mixing fact with fiction. Sales ALWAYS decline since the start of the year; that's what happens after Thanksgiving/Christmas. Additionally, the market had been hit hard before the iPad debuted, and that's thanks to the economy. A decline in portable sales has nothing to do with the iPad up to this point.

I live in NYC and I have yet to see one iPad in the hands of a consumer. From what I've heard the iPad is a big seller in the corporate world, which is the only place you'll find suckers with that kind of money for fluff.

By frobizzle on 5/7/2010 11:18:29 AM , Rating: 3
Very pathetic excuse for journalism. And people comment that Jason Mick is bad? His works look like Pulitzer Prize winners compared to this waste of words!

By bruce24 on 5/8/2010 11:14:29 AM , Rating: 3
FWIW: This is small section of IDC's opinion, you need a subscription to view to full document. Note they use the term mininotebooks vs netbooks.

"From a market standpoint, we believe iPad, and similar media tablets to follow, will
cannibalize mininotebooks to a degree but it will be limited. Many media reports have
portrayed the slowdown in mininotebook growth as something driven by the
introduction of the iPad. We tend to disagree with that analysis. Mininotebook growth
had started to plateau in the first quarter of 2010 and would have despite the
introduction of the iPad. We expected this slowing of growth as volumes continued to
climb for the mininotebook category and because mininotebooks were never quite
able to offer a differentiated experience from its larger notebook kin. Unit for unit,
when compared to PCs or even notebooks or even mininotebooks, however, iPads
are still just a portion of overall units when you consider that 333.2 million PCs, 249.4
million portables and 39.9 million mininotebooks are expected to ship in 2010.

Our shipment forecasts for the iPad and similar media tablets that will soon make it a
device category will reach over 7.6 million units this year and 16.8 million units next
year. We believe media tablets will join the increasing array of portable devices that
consumers will have the choice of selecting, along with smartphones, e-readers,
portable GPS devices and the like."

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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