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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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RE: Solved it
By Da W on 5/12/2011 2:00:17 PM , Rating: 4
That's not the point. The point is what kind of game do you play with it?

I personnaly stick to my old 5770 (which is a 4870 with lower power) and AMD X3 and it runs everything i need. Civ 5 (boring), Starcraft II (disapointing), Empire-Napoleon-Shogun total war (which is beatutiful and still runs smooth), Call of Duty (console game), the Sims mediaval for my girlfriend, i'm looking for Portal2 and i think it will run smoothly on my machine. I mean, all the big blockbuster games run ok on what i would call still an upper than average machine, even if i know every enthousiasts is gonna laugh at me. But when you think about mass market and SALES, who needs to upgrade if the most popular and demanding software don't need it?

And the bottleneck on my machine would be the GPU, i think with some overclock my phenom X3 can do just fine for a year or two still. So there again, you talk about upgrading the GPU only, but the market is looking at INTEL and MICROSOFT sales.

Truth is hardware has moved faster than the software in general, and now we don't need faster hardware, we just need more power-efficient hardware to rerun the old software on smaller machines.


RE: Solved it
By StevoLincolnite on 5/12/2011 2:57:06 PM , Rating: 2
quote:
and now we don't need faster hardware,


I'm generally an enthusiast, so upgrades occur often.
However, try running a game at 2560 x 1600 or at eyefinity levels of resolution... Its an entirely different ball game as far as hardware requirements needed to run a game, especially with AA and AF.

For you it might enough, 1080P or less isn't exactly a demanding resolution these days, in my opinion.


RE: Solved it
By Hieyeck on 5/16/2011 3:49:13 PM , Rating: 2
1080p stopped being demanding 5 years ago. Sadly, higher res monitors are either pretty expensive or prohibitively large.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs














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