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Tablets to gobble 35% of the PC market in 2011  (Source: Apple)
Tablets may change the companies that profit in the PC market

There have been a few disruptive forces in the computer market over the years. The netbook really upset the notebook market as users flocked to the cheap and highly portable machines. Apple’s iPad then came along and put a sizeable dent into the market for netbooks (at least according to ASUS).

As more competitors enter the tablet fray, the impact on the computer market will only increase. Goldman Sachs has announced that tablets are one of the most disruptive forces in computing in nearly 30 years. The company says that tablets will eat into the PC market so heavily that they will start a reshuffle in who profits most in the PC industry that is currently dominated by Microsoft and Intel.

Microsoft dominates on the back of its Windows operating system installed on the vast majority of all computers. Despite the fact that Microsoft is huge in the PC market, the company is slow to take on new markets and is currently not offering a version of Windows specifically for consumer-oriented tablets. This leaves a notable window for competitors to seize the market like the iOS-packing iPad and Honeycomb-powered tablets like the Xoom.

The big impact for Intel will come thanks to the fact that the vast majority of processors used inside tablets today are not Intel parts. ARM is the leader in the tablet and smartphone market today. The big reason for this is that the ARM processors user relatively little power leading to better battery life for tablets.

Sachs predicts that both Apple and Google will begin to catch up to Intel and Microsoft thanks to the popularity of tablets.

The Goldman Sachs report noted, "This [wide adoption of tablets] should result in a theoretical loss of 21 million notebooks in 2011 and 26.5 million in 2012." Sachs expects the tablet to cannibalize about 35% of the PC market in 2011 and 33% in 2012.



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RE: Media consumption device
By themaster08 on 4/20/2011 2:12:58 PM , Rating: 2
I agree, and believe that for many people a tablet could replace a desktop/laptop entirely.

Since the widespread adoption of smartphones, the amount of people (friends, relatives, and so forth) I have seen replace their computer with their phone for their media/social networking consumption is quite astounding.

Many of these people used their PCs for this sole purpose. They never had any intention of any productivity value using their PCs, other than occasionally doing their school/college essays. Many of which now have full-time jobs.

I think those people embrace the fact that a tablet is very similar to their phones. For their consuming habits, it's perfect for home, or even travelling use. It provides them with the same ease-of-use as their phone, but with the comfort of a larger screen and excellent battery life.

You hit the nail on the head. The main function of many peoples' computers and laptops are for media consumption purposes. Furthermore, people want convenience; the easy life. Many prefer to spend more time indulging in the likes of other peoples' lives instead of doing anything constructive with their own. Devices like the tablet fit the bill perfectly.


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