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Sales of sub-$500 netbooks, likes this Toshiba NB505-N508 10.1-Inch Netbook, priced for $278 on Amazon, increased by 21 percent during the holiday season.
More to do with earlier boom in Windows 7 and netbook sales

Reports of tablets' disruptive impact on PCs have emphasized how devices such as the iPad are weakening the market for netbooks, laptops, and traditional desktops. Goldman Sachs went as far as calling tablets one of the most disruptive forces in personal computing in nearly 30 years.

But retail and consumer research firm NPD is countering those claims in a new report, which shows that the rate of cannibalization is actually declining with more recent purchasers.

The report shows that only 14 percent of early iPad adopters (those who purchased one within its first six months on the market) abandoned a PC purchase as a result. That number dropped to 12 percent when looking at those who picked up iPads over the most recent holiday season.

"The explosion of computer sales when Windows 7 launched, as well as the huge increase in netbook sales at that time, are much more to blame for weak consumer PC sales growth than the iPad," NPD's VP of Industry Analysis Stephen Baker said in a press release. "Overall it appears that the vast majority of iPad purchases to-date have been incremental to the consumer technology industry."

According to the report, the cannibalization of netbooks in particular by the iPad is down 50 percent in recent iPad buyers when compared to early adopters. Meanwhile, the consumer market for Windows-based notebooks priced below $500 grew by 21 percent in the six-month period ending March 31 of this year, while the over-$500 market took a hit of 25 percent in the same period. 

"The conventional wisdom that says tablet sales are eating into low- priced notebooks is most assuredly incorrect," Baker said.

One more interesting note from the report: Carrier sales of the iPad amounted for just three percent of holiday sales, while Best Buy and Apple store sales made up approximately three quarters. Sales of the basic, Wi-Fi-only iPad increased by 33 percent during this timeframe, signifying that consumers don't see 3G connectivity as a major benefit.

"Consumers just do not see the utility in 3G connectivity," Baker said. "There’s an added expense for the device and for the service, something a majority of iPad owners aren’t willing to pay. Since most iPads rarely venture away from home the value of a 3G connection is likely to diminish, especially as other tablets enter the market and pricing starts to fall. When every penny counts, features that aren’t core to the user becoming increasingly marginalized as manufacturers fight for every sale."

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Most get both
By dragonbif on 5/12/2011 11:28:45 AM , Rating: 2
I dont know anyone with just an iPad. Most people I know get an iPad and then a laptop or PC.

I was in the Seattle airport a few months back and this guy was talking on his iPhone and using his iPad. He also had an iPod sitting on his lap with the headphones and sitting in the seat next to him was a MacBook. I couldnt help but smile at that. I bet he had a iMac at home

RE: Most get both
By Chudilo on 5/12/2011 11:40:44 AM , Rating: 2
Most people already have a computer to do work / create content (type documents / process and store photos/ work related things). The iPad is not very good at any of the above things.
The iPad is for content consumption. Visit a few websites; quickly look up some things(without booting up); watch something, read/send an email and so on all on a screen more comfortable then your smartphone. I tend to think of it as a smart(interactive) TV-like device that originated from the computer industry rather then the consumer electronics industry.

RE: Most get both
By robinthakur on 5/12/2011 12:30:28 PM , Rating: 2
Agreed, I find that you use your main pc less and less though (outside of work) when you can access pretty much everything through your iPhone and iPad, and things which you can't easily use it with I just tend to stop using...! When I go to meetings at work now, a few people just use their iPads to take notes/doodle on and email them back to their work emails and also to present data.

RE: Most get both
By sneakers55 on 5/13/2011 5:33:54 PM , Rating: 2
An iPad can't go far from a full-function computer running the PC or Mac version of iTunes.

iPad won't rip CDs and most of us are not rich enough to buy our music library again. Those of us in our 50s have bought a lot of it twice (once on LP, once on CD).

What you purchase on the iPad won't get backed up unless you have the full-function computer to do it.

“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs

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